Louisiana Insurance Department Offers Early Retirement to Cut Costs

Louisiana Insurance Commissioner Jim Donelon gave some of his employees the chance to take an early retirement incentive, to help his agency balance its budget.

Donelon says six employees took the offer under which they will receive a lump sum payment of 50 percent of the agency’s savings from their leaving.

The Advocate reported that Donelon said the retirements will save his department $561,000 in the next budget year, minus the cost of health care.

When the new fiscal year begins July 1, Donelon said the insurance department will have 225 employees, which is down from 275 not long ago.

The insurance department is self-funded through fees, licensing and other regulatory charges. But it’s taken cuts as the Jindal administration shifts more of those dollars to fill budget holes elsewhere.