Posted: Jan 24, 2013 4:17 PM
Updated: Jan 24, 2013 5:02 PM
Source: Associated Press
BATON ROUGE - A Baton Rouge judge has ruled Gov. Bobby Jindal's 401(k)-style retirement plan for future rank-and-file state workers unconstitutional.
The Retired State Employees Association of Louisiana claimed the law is unconstitutional because it didn't get a two-thirds vote in the state House of Representatives.
State District Judge William Morvant on Thursday sided with them.
The bill 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.
Jindal's office had said 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.
"We are disappointed in the court's ruling and we look forward to a successful appeal," Jindal said in an emailed statement from his press secretary. "The cash balance plan will help get our debt under control, protect taxpayers and provide new state employees with a portable retirement account that realizes investment earnings."