Friday, June 21, 2024

Can offering flexible retirement plans improve employee retention?

Louisiana Public Higher Education Employees Gain Access to More Flexible Retirement Benefits

Are you a faculty or staff member at one of Louisiana’s public higher education institutions? If so, you may be interested in the recent changes to retirement benefits that could significantly impact your financial future.

A new law signed into effect by Governor Jeff Landry on May 21 aims to provide more flexibility and lucrative options for retirement benefits for thousands of faculty and staff members across the state. Sponsored by Representative Barbara Freiberg, the legislation is designed to address the issue of brain drain and retain quality employees in a state that lags behind in base compensation and retirement contributions.

Under the new law, current employees who have been on the job for more than five years will have a 12-month window to switch retirement plans, while employees with four years or fewer have until their fifth anniversary to make the switch. This change could have a significant impact on the financial well-being of faculty and staff members, especially considering that Louisiana is one of 15 states that does not enroll public employees in social security.

Faculty and staff senate representatives have hailed the legislation as a massive win, emphasizing the importance of the retirement plan in the absence of social security benefits. The extended window for evaluating retirement plans allows employees to make a more informed choice about their future and could potentially influence their decision to stay in Louisiana.

With employee retention becoming a challenge for universities nationwide, Louisiana lawmakers are hopeful that offering more flexibility in retirement benefits will encourage faculty and staff to remain in the state. The bill is seen as a crucial step in addressing population and workforce challenges and retaining the best talent in Louisiana.

While the new law is not without its imperfections, faculty and staff advocates believe it is a significant step forward in improving relationships among employees, administrators, and government officials. The hope is that this legislation will pave the way for future benefit expansions that will further support employees with longer tenure.

If you’re a faculty or staff member in Louisiana’s public higher education system, now is the time to evaluate your retirement options and consider how this new law could impact your financial future. Stay informed, make an informed decision, and take advantage of the opportunities available to you. Your retirement is worth it.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The content is based on general research and may not be accurate, reliable, or up-to-date. Before making any financial decisions, it is recommended to consult with a professional financial advisor or conduct thorough research to verify the accuracy of the information presented. The author and publisher disclaim any liability for any financial losses or damages incurred as a result of relying on the information provided in this article. Readers are encouraged to independently verify the facts and information before making any financial decisions.

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