Many of our public pension systems operate outside the laws of reason and are usually motivated more by political interests than practical economics.
A study of the 100 largest public pension plans in the U.S. highlights Louisiana’s pension fund troubles.
Louisiana’s public schools put themselves in a precarious position by hiring more teachers and administrative personnel, even while the number of students declined. Generous pension and benefit plans have exacerbated this problem.
Potential conflicts and a growing interest in hedge funds have some eyeing Louisiana’s public retirement systems with renewed skepticism.
The complex nature of the retirement system tends to obscure the importance of pension reform. This has contributed to an unfortunate lack of urgency over the years. But while the details can appear daunting, the crux of the matter is simple: Louisiana has promised its retirees more than it can deliver.
Gov. Bobby Jindal’s proposals to boost employee contributions, alter benefit calculations and increase the official retirement age will soon undergo substantive changes during floor debate in the Upper Chamber.
Critics of Governor Jindal’s proposed “cash balance” pension plan for state employees have made a number of inaccurate claims. The current retirement systems have amassed an astonishing $18.9 billion in unfunded liabilities, but reform opponents defend the status quo with scare tactics while relying on a flawed report from the Legislative Auditor.
We believe that voters should support this amendment and vote Yes on Saturday. While there is no doubt that policymakers have been challenged by recent budget shortfalls, most taxpayers face challenges of their own. These taxpayers must live within their means and we believe that policymakers should do the same.
‘A defined contribution system is one no longer supported by taxpayers, but, rather by the responsible investment choices of individuals.’
A retire-rehire program for teachers was approved by lawmakers 10 years ago, but today more than half of all participants are non-educators, while annual pension payouts are nearing $250 million