Lawsuit filed against new state retirement plan
BATON ROUGE- An organization representing Louisiana's retired state employees is challenging Gov. Bobby Jindal's new pension plan for future rank-and-file state workers.
The Retired State Employees Association of Louisiana claims the law, passed earlier this year, is unconstitutional because it didn't get a two-thirds vote in the state House of Representatives.
The association filed its lawsuit Thursday in Baton Rouge district court.
The bill creates 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.
The lawsuit says any provision involving a public retirement system that is deemed to carry a price tag requires a two-thirds vote for passage.
During debate, House Speaker Chuck Kleckley ruled the bill only needed a simple majority.
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