BATON ROUGE, La. (AP) — Louisiana Gov. Bobby Jindal won his first significant victory Wednesday in his bid to revamp state retirement, when both the House and Senate agreed to create a new pension plan for future rank-and-file state workers.
The bill sent to the governor's desk would create an investment account similar to a 401(k) plan for state employees hired after July 1, 2013, instead of a monthly retirement payment based on their salaries and years of employment.
With passage, Louisiana is set to become the first state in the nation to provide only the "cash balance" retirement plan for certain employees. Nebraska has such a plan — but also includes its employees in the federal Social Security system. Louisiana state employees aren't in Social Security.
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