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Medical board approves sliding deferred-compensation match to reduce employer costs
Summary
The Louisiana State Board of Medical Examiners approved a revised sliding-scale deferred-compensation matching plan that reduces projected employer costs, clarifies match percentages by salary bands, and received pushback from two members concerned about recruitment and retention.
The Louisiana State Board of Medical Examiners on July 2024 approved an alternative deferred-compensation matching plan intended to reduce employer cost while preserving retirement benefits for lower-paid staff. The board voted after a presentation and debate, with two members recorded as opposing the change.
Board member Dr. Collado presented the plan, saying the proposed sliding scale would match employee contributions at 22% for salaries $40,000 and under, 20% for salaries from $40,001 to $90,000, and 12% for salaries above $90,000. He told the board the change would reduce the board——s projected employer cost from approximately $193,000 to about $31,004.74 under current participation assumptions.
The proposal drew questions about staff recruitment and retention. Dr. Thomas asked whether reducing the match would make the agency less competitive for talent; Collado and HR lead LaKenya (Miss Laquene) responded that the sliding scale remains competitive with other state agencies and private employers. LaKenya clarified the exact percentages, saying, "It's 22 if it's $40,000 and under, and it's 20% if you're $40,001 to $90,000, and it's 12% for $90,000 dollars and above." Board members agreed to monitor attrition and revisit the policy if staff departures cite the change.
A motion to approve the alternative retirement match plan was made, seconded, and approved by the board. Two members were recorded as voting "nay" (Doctor Taylor and Doctor Thomas); the chair declared the motion passes.
The board directed staff to implement the change and monitor hiring and retention impacts, with the understanding the policy can be adjusted if the board sees adverse recruitment effects.
