As expected, Bobby Jindal has declared victory on pension reform without passing most of the package.
The press release below from Team Jindal is a very good indication that Jindal doesn’t have the votes to pass most of his pension “reform” package.
The only bill that has passed thus far is HB 61 as noted below.
The increase in employee contributions, the increase in the retirement age and the change from 3 years to 5 years for the period in which benefits are calculated are not passing and the session is quickly coming to an end.
Note from below: “This piece of legislation is the most importance (sic) part of the Governors pension reform package for this session.”
Jindal’s announcement to his national audience turns surrender into a victory. It’s all about the spin.
ALL – Yesterday, both the House and Senate passed an historic pension reform for the State of Louisiana by instituting a new cash-balance plan for newly hired state employees. The legislation (HB 61) – which passed with overwhelming margins in both chambers – is a game-changer for the state.
Rather than tinkering at the edges of a failed pension system that currently has an $18.9 billion unfunded accrued liability, HB 61 sets the stage for a more sustainable retirement plan that protects taxpayers and provides state employees with a retirement account that will realize investment earnings.
As the Associated Press reported, “With passage, Louisiana is set to become the first state in the nation to provide only the ‘cash balance’ retirement plan for certain employees.”
There has not been a more significant reform to Louisiana’s pension system in decades. This piece of legislation is the most importance part of the Governor’s pension reform package for this session.
Deputy Communications Director
Office of the Governor