Monday, March 29, 2010

Senate Retirement Chairman opposes conversion to DC plan

House Speaker Jim Tucker, R-Algiers, wants to take on the state’s retirement debt, which now tops $17 billion.

One way to do that, Tucker said, is to transition the state employee-retirement systems from a defined-benefits to a defined-contributions plan. The defined-contributions plan is akin to those offered by private businesses, such as 401-K. Unlike the defined-benefits plan, payments at retirement can fluctuate based on market conditions.

Senate Retirement Committee Chairman Butch Gautreaux said he opposes the swap.

“It’ll be too expensive,” he said. “We don’t pay what the private sector does, and we shouldn’t offer the same thing.”

1 comment:

monkglenn said...

I agree with the system remaining as a defined benefit system, and am adamantly opposed to the private sector model. Look at the market conditions since 911 and you will see that would have left people with no retirement for a lifetime of dedicated state service. State workers are on the whole very dedicated and hardworking, and the perception that they deserve LESS is based on delusion. State Civil Service was established to protect and not to erode the status of Civil Servants. I write this to agree with Senate Retirement Committee Chairman Butch Gautreaux who it is reported said he opposes the swap.