The Retired State Employees Association of Louisiana claimed the law is unconstitutional because it didn't get a two-thirds vote in the state House of Representatives.
BATON ROUGE, La. (AP) - A Baton Rouge judge has ruled Gov. Bobby Jindal's 401(k)-style retirement plan for future rank-and-file state workers unconstitutional.
The Retired State Employees Association of Louisiana claimed the law is unconstitutional because it didn't get a two-thirds vote in the state House of Representatives.
State District Judge William Morvant on Thursday sided with them.
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 had 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.