Selected Louisiana teachers and other state employees hired after July 1, 2013, will be able to participate in a new cash balance pension plan under legislation signed by Gov. Bobby Jindal this week.
The law creates the new cash balance plan for selected new hires in the $13.7 billion Louisiana Teachers' Retirement System, the $9.3 billion Louisiana State Employees' Retirement System, and the $1.4 billion Louisiana School Employees' Retirement System, all of Baton Rouge.
The law excludes members of the Hazardous Duty Services Plan in the Louisiana state employees and excludes all but post-secondary teachers and school employees in their respective retirement systems.
New K-12 employees in the teachers' and school employees' pension funds have the option of joining the cash balance plan or to the traditional defined benefit plan.
A bill increasing the employer contribution rate to 10% from 8% over four years did not pass the House and Senate, and a bill merging the teachers' and school employees' pension funds was shelved before the end of the legislative session on Monday.