Gov. Bobby Jindal rolled out a proposal Wednesday for a massive overhaul of state employee pension systems that would move some new workers to a 401(k)-style plan, increase the retirement age for some existing employees and require increased contributions from some in the existing systems. The centerpiece of the proposal, which aims at closing an $18.5 billion gap between the amount of money in the system and the funds needed to pay promised benefits, is a "cash-balance plan" that places new hires in a system where their retirement is largely determined by the performance of invested contributions.

As he unveiled the proposal to a meeting of the Baton Rouge Rotary Club, Jindal said it was the only way to preserve the system.

"The path we are on is unsustainable and irresponsible, and if we don't act now to reform state pension systems, then the state will be forced to chose among several unacceptable options: break our promise to workers, be forced to cut critical services like higher education and health care, or saddle future generations with debt and higher taxes," Jindal said.