Controversial pension reform bill next hot topic on Gov. agenda

BATON ROUGE, LA (WAFB) - State workers retirement is next on the Governor's agenda. He is looking to shift some costs from the state to the workers.

If you thought the education reform package was controversial, wait until you see what the Governor is planning for pension reform.

Governor Jindal is looking to use pension reform to help balance the budget. A proposed bill would require state employees to pay an additional 3.75 percent into the state's general fund to pay for their pensions, while reducing the state's contribution by the same amount. It would also raise the retirement age to 67. This will also push the vesting period from three to five years.

"On this pension issue, you got a cross section of people who have been state workers and done nothing more than go to work," said Clay Young, political analyst. "So his methodology will have to change. He won't be able to bulldog on this agenda. He's gonna have to work as hard as he can to get state workers on his side."

State Representative Pat Smith says the Governor's plan is a recipe for disaster because it will force many out of work and into the system sooner.

"But with this package, the way it is if it stays the way it is the worst case scenario is that the state employees that are at retirement age are going to retire, which will place an undue burden on the retirement system because they will start collecting their money now and they will collect it longer," said Smith.

Experts agree the pension reform bill will not be as easy as education reform was.

"This fight is going to be a lot different than the fight over the education reform in that the opposition is much larger and the issue is much more emotional," said Young. "But I think the Governor since he's planned so much up to this session to be effective is still the odds on favorite to get what he wants."

The pension reform bills are originating out of the Senate and should start being heard in committee soon.

Copyright 2012 WAFB. All rights reserved