Gov. Bobby Jindal’s proposal to move to a new 401(k)-type pension plan for future state employees ran into trouble late Tuesday in the Louisiana House.
The House voted 55-46 for an amendment that would have also enrolled new employees in Social Security, a move that would have added to retirement expenses.
House Bill 61 would create a investment account similar to a 401(k) plan – called “cash balance” – for state government employees hired after July 1, 2013. The current pension plan bases lifelong monthly retirement payments on the state government
The approval of the change came as the bill was nearing a vote after some three hours of debate. Bill sponsor state Rep. Kevin Pearson, R-Slidell, yanked the plug on a vote. Pearson served notice he would bring House Bill 61 up again Wednesday.