Plan has been tossed on grounds it wasn't properly approved by lawmakers
A Baton Rouge judge has ruled Gov. Bobby Jindal's 401(k)-style retirement plan for future rank-and-file state workers unconstitutional.
State District Judge William Morvant sided with the Retired State Employees Association of Louisiana, agreeing that the law wasn't properly passed by lawmakers because it didn't get a two-thirds vote.
Jindal, who was out of town, issued a statement saying he is disappointed, believes the bill was constitutionally approved and plans to appeal Morvant's decision.
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.
During the last legislative session, House Speaker Chuck Kleckley ruled the bill didn't require a two-thirds vote.
(Copyright 2012 by The Associated Press. All Rights Reserved.)