Posted: May 23, 2012 5:06 PM by Mike Steele
Updated: May 23, 2012 5:06 PM
BATON ROUGE- Another key component of Governor Bobby Jindal's pension reform package advanced at the Capitol today.
Senate Bill 52 by Senator Elbert Guillory, D- Opelousas, could require state workers to contribute more towards their retirement plan. About 47,000 workers could be affected. The list does not include K-12 teachers or emergency personnel like firefighters and police.
There was opposition to the bill from state worker organizations and retirement system administrators. Some say the plan could wind up costing more than it benefits. Louisiana Workforce Commission employee Neil Carpenter called the plan a Ponzi scheme. Carpenter says newer employees will not be able to keep up with the demands from those already in retirement.
Governor Jindal proposed several bills he says will help address a $19 billion dollar shortfall within the state retirement system. The money saved will be used to help address that debt.