Although they didn’t actually “hold hands and sing Kumbayah”, there was a brief moment of peace and accord between the Jindal administration and teachers unions last week. After more than two years of name-calling, angst and lawsuits, they found common ground around a bill to modify the process for terminating tenured teachers who receive “ineffective” ratings.
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.