Louisiana lawmakers are considering a dramatic change in retirement offerings for state-government workers that wouldn’t guarantee a set benefit for life. The idea being mulled for new hires in state government would be similar to a 401(k) plan. Current state employees participate in what is called “defined benefit” plans where they receive lifelong benefits upon retirement based on their years of service and their salaries. House Speaker Jim Tucker wants lawmakers to consider switching incoming state-government employees to “defined contribution” plans where the employees manage their own investments. Employees and employers pay into the plans, and employees retire with those contributions along with any investment earnings or losses. The House and Senate retirement committees were hearing testimony about the idea today.
State lawmakers weigh government-retirement change
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