Monday, July 1, 2013

Cash Balance Plan Passed Unconstitutionally

On Friday, June 28, 2013, the Louisiana Supreme Court unanimously ruled that the Cash Balance Plan enacted in 2012 did not receive the requisite two-thirds vote of the legislature and was therefore unconstitutional. The ruling was in a lawsuit brought by the Retired State Employees Association and upheld the decision of Judge William Morvant of the Nineteenth Judicial District Court. A copy of the opinion of the Court can be viewed here.

The Cash Balance Plan was originally enacted to apply to state employees hired starting July 1, 2013. However, implementation of the plan was suspended to July 1, 2014, during the 2013 legislative session. Given the Supreme Court's ruling, the plan will no longer take effect.

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