Retirement changes pass Louisiana Senate committee
House Bill 61, proposed by Rep. Kevin Pearson, creates a different structure for retirement benefits of Louisiana state employees hired after July 1, 2013. Currently, state employees receive a "monthly retirement payment based on their salaries and years of employment." The account created by the new plan is similar to a traditional 401(k), but it would "grow at the rate of investment earnings," and is therefore shielded from volatile markets.
Proponents of the legislation claim it will slow the growth of pension programs. Opponents worry that the new program may not provide retirees enough financial security.