Fixing LA’s UAL

The Unfunded Accrued Liability (“UAL”) in the state retirement systems has almost reached $19 Billion and is still growing.

Despite Team Jindal’s spin to the contrary, nothing that was passed during the just-ended lege session addresses the growing UAL. To the contrary, according to the lege’s own actuary, the 401(k)-type program for some new state hires will likely create a new and different UAL.

Worse is the never-ending passage of special interest retirement bills that add to the existing UAL. The 2012

Regular Session was no exception. The Baton Rouge paper reports another of those special bills which will add to the burden of the taxpayers. See story here.

The current efforts to address the UAL are the equivalent to bailing water from a sinking boat without trying to fix the hole in the bottom of the boat.

Bobby Jindal vetoing HB 38 would a start in plugging the hole.