Posted: Jan 24, 2013 10:20 AM
Source: Associated Press
BATON ROUGE - A Baton Rouge judge is hearing arguments 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.
The trial before Judge William Morvant is Thursday. It's expected to last all day.
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 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.