BATON ROUGE, La. (AP) - The Louisiana State Employees Retirement System has hired a tax lawyer to review ramifications of a new 401(k)-style retirement plan for future rank & file employees hired starting in 2013.
LASERS Executive Director Cindy Rougeou told The Advocate (http://bit.ly/LVkA9O ) the system also is looking at whether a lawsuit should be filed challenging the new plan that Gov. Bobby Jindal pushed as a way to shrink growth in retirement system debt.
Before the plan can begin, Rougeou said an inquiry must be made to the federal Social Security Administration to determine whether the plan would provide an equivalent benefit to Social Security. Otherwise, affected state employees would have to be enrolled in Social Security with required employee and employer contributions.
Also, the IRS must determine whether the new plan will be tax-exempt.
Information from: The Advocate, http://theadvocate.com
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