In the aftermath of union-filed lawsuits challenging the constitutionality of education reform measures, a bill to prohibit participation in state retirement by future employees of the teachers’ unions was narrowly defeated on the House floor Monday.
“They’re not public employees. They do not work for the state of Louisiana,” Representative Alan Seabaugh (R-Shreveport), the bill’s author, explained.
Figuring out how to pay for retirement plans might not be the most scintillating topic, but it’s a growing issue for Louisiana lawmakers. Here’s why:
Just as with Social Security, active workers pay into the system while retirees take money out. The difference between the pension plan’s cash on hand and how much will be paid out over time is known as the unfunded accrued liability, or UAL. In Louisiana’s state retirement systems, the UALs have grown a lot lately.