Jindal unveils pension plans
“State pension costs have grown, they continue to grow, and they are crowding out critical investments in priority areas.” Gov. Bobby Jindal
Gov. Bobby Jindal unveiled a plan to overhaul Louisiana’s debt-laden state employee pension system Wednesday that would increase retirement contributions for some 54,000 current employees, reduce benefits and up the retirement age for many of them.
Jindal also said he wants to change the retirement system for new hires, moving away from a set monthly check to one where employees would get a lump sum on retirement based on contributions and earnings in a 401K type set-up.
Jindal laid out the plans as he decried the $18.5 billion debt of the four state retirement systems and how hefty constitutionally required annual payments on that debt are taking dollars away from education and health care.
Jindal’s proposal only address the Louisiana State Employees Retirement System which has liabilities of $6.45 billion. He exempts the other three systems, teachers, school employee and State Police. The Teachers Retirement System of Louisiana’s debt is $10.8 billion.
Jindal said he did not want to touch teachers or school employees because of educational changes on the horizon.
“State pension costs have grown, they continue to grow, and they are crowding out critical investments in priority areas,” Jindal told the Rotary Club of Baton Rouge.
“This is absolutely a critical issue for the future of our state,” Jindal said as he discussed proposals he will ask the 2012 Legislature to approve.
Jindal said the legislation will be filed this week for consideration during a legislative session that opens March 12.