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.”