State Pensions
5:19 pm
Thu January 24, 2013

Changes to State Employee Retirement Unconstitutional

Gov. Bobby Jindal pushed the 401K-style retirement plan for future rank-and-file state workers last year. Thursday, a state judge struck it down.

Judge William Morvant called his ruling, “purely procedural.”

He said the law that swaps out monthly retirement payments for a “cash-balance” plan for new hires needed a two-thirds majority to pass since it raises the cost of the retirement plan.

Throughout the hearing Thursday, the opposing sides attacked the credibility of each other’s auditor.

The judge said the state constitution only gives authority to the legislative auditor, who had determined the cash-balance plan would raise costs.