A Baton Rouge judge is hearing arguments today in a lawsuit challenging Gov. Bobby Jindal’s 401(k)-style retirement plan for future rank-and-file state workers. The Retired State Employees Association of Louisiana claims the law is unconstitutional because it didn’t get a two-thirds vote in the state House of Representatives. Jindal’s office says the governor is confident the measure was constitutionally passed during the last legislative session. House Speaker Chuck Kleckley ruled the bill didn’t need a two-thirds vote. It created 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 salary and years of employment. It’s called a “cash balance” retirement plan. The trial before Judge William Morvant is expected to extend throughout the day.
Trial begins for suit against new state employee retirement plan
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