Higher education executives sought and won support Monday for legislative relief from an “unintended consequence” of Gov. Bobby Jindal’s pension plan for new employee hires.
The state Senate Retirement Committee, without objection, approved Senate Bill 16, sponsored by state Sen. Gerald Long, R-Winnfield, which would retain current employer contribution rates.
The employer contribution would drop to 1.8 percent under Jindal’s plan instead of today’s 5.7 percent rate.
LSU system President William Jenkins, University of Louisiana system President Sandra Woodley and Southern University Chancellor James Llorens said the 401(k)-type plan as written would be devastating for recruitment and retention on college campuses.
“It’s a very, very challenging time for us, but now with the emergence of the change in retirement, we have a mammoth problem to deal with,” Jenkins said. “This is a recruiting season we are in ... This decision to reduce the contribution has a serious impact on recruiting.”
Jenkins listed other states’ employer pension contribution rates, including those surrounding Louisiana that are near or at 10 percent.
“This coming year, we would be at 1.8 percent,” Jenkins said. “It is going to be very hard to attract faculty to our university at that percentage.”
Woodley said it is already a “difficult time for us to recruit faculty after four pretty challenging budget years ... Resources are already low. We are particularly concerned about this,” she said.