LAFAYETTE, La. (The Advertiser)- Lafayette Mayor-President Josh Guillory is pushing a plan to change Lafayette Consolidated Government’s retirement system that could save taxpayers millions of dollars.
Guillory is asking Lafayette’s City Council and the Lafayette Parish Council to consider a plan to move new hires at Lafayette Consolidated Government into a state retirement system with considerably lower employer contribution rates, meaning that Lafayette Consolidated Government’s share of retirement costs would drop dramatically.
The change, which the councils would have to approve in the coming weeks, wouldn’t affect current employees and would only apply to workers hired after Nov. 1, 2020. It also wouldn’t change the required 9.5% individual contribution rate for covered employees.
Retirement benefits for new hires would be similar to those for current employees, since both systems use the same formula for determining how much employees receive in retirement and how long they have to work for the government to qualify for benefits.
This change would not include first responders because they are served by a separate retirement system.