Cigarette Tax Eyed as Way to Rescue KY Pension System

By: Associated Press
By: Associated Press

FRANKFORT, Ky. (AP) -- A leading Kentucky lawmaker says raising the cigarette tax to $1 a pack would generate about $100 million a year that could be used to shore up the state's pension system for government retirees.

House Speaker Greg Stumbo told reporters Tuesday that's one of several options House lawmakers are considering to bolster the pension system, which has a $33 billion unfunded liability.

The Republican-controlled Senate passed a bill last week that requires the state to make its full contribution to the pension system but doesn't identify a funding source to do that. Stumbo said the Democratic-led House wants a designated funding source.

The Senate bill also would create a 401(K)-like hybrid retirement plan that some House lawmakers want to remove from the legislation.

The legislation is Senate Bill 2.


WBKO.com is happy to provide a forum for commenting and discussion. Please respect and abide by the house rules:

Keep it clean, keep it civil, keep it truthful, stay on topic, be responsible, no links, share your knowledge, and please suggest removal of comments that violate these standards.

powered by Disqus
WBKO 2727 Russellville Road Bowling Green, KY 42101-3976 Phone: 270-781-1313 After Hours Hotline: 270-781-6397 Fax: 270-781-1814
Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 190966481 - wbko.com/a?a=190966481
Gray Television, Inc.