BATON ROUGE, La. (AP) - State officials are seeking advice from the IRS on whether Louisiana's new state pension system would meet federal rules.
Gov. Bobby Jindal's administration is seeking an opinion on whether a cash balance retirement plan would provide benefits equivalent to Social Security, the Advocate reports.
Right now, Louisiana state employees are not enrolled in the federal Social Security system, meaning that the state doesn't have to pay the employer's share of Social Security taxes.
If the new system isn't judged equivalent, the state and employees could have to enroll in Social Security and start paying taxes.
The new pension plan, meant to save the state money, will take effect for state employees hired after July 1, 2013.
The Louisiana State Employees Retirement System board also voted to seek opinions Friday.