signature retirement achievement from last year, a law that would shift future rank-and-file state workers to a 401(k)-style retirement plan.
With a 35-0 vote Wednesday, the state Senate gave final legislative passage to a one-year suspension of the law that had been slated to take effect in July.
Jindal can’t veto the suspension, which gives lawmakers time to learn the resolution of several outstanding concerns.
A district court judge has ruled the law unconstitutional, saying it didn’t get enough votes to pass. That ruling is on appeal at the Louisiana Supreme Court. Meanwhile, leaders of two state retirement systems have raised concerns about tax implications and possible costs of the changes.
The retirement change, approved by lawmakers last year, created an investment account similar to a 401(k) plan for certain state employees hired after July 1. That would stand in place of a monthly retirement payment based on salary and years of employment.
With the delay, it will apply to workers hired after July 1, 2014 — if the law is upheld by the Supreme Court.
Under the changed system, the contributions made by the employee and the state would be invested, and the account would grow at the rate of investment earnings. The employee would never lose money for investment slumps, as in a traditional 401(k) plan.