Gov. Bobby Jindal on Tuesday signed into law a retirement change that will create a new pension plan for rank-and-file state employees who are hired starting in July 2013, according to The Associated Press. The measure was the only significant retirement proposal among many sought by the Republican governor to win passage from lawmakers in the just-ended legislative session. Employees hired after July 1, 2013, will receive an investment account similar to a 401(k) plan instead of a monthly retirement payment based on their salaries and years of employment. The new pension plan is called a “cash balance” plan. Jindal says the change will help shrink the growth of the multibillion-dollar state retirement debt, but retirement analysts disagreed widely.
New pension plan for state employees becomes law
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