Senate Passes Government Pension Reform Bill

By Associated Press | 

Legislation that would reform the pension system for state and local government retirees in Kentucky has cleared the Senate.

The proposal would create a 401(k)-like hybrid retirement plan for new employees. It also would eliminate cost-of-living increases for retirees already drawing benefits.

The Senate voted 33-5 to pass the plan, which contains recommendations from a legislative task force that reviewed the financially troubled pension system. The pension system has a $33 billion unfunded liability.

The legislation also calls for the state to begin paying its full contribution beginning next fiscal year. That means lawmakers would have to find more than $200 million a year in additional funds for the pension system.

The measure now goes to the House for consideration.

Comments are posted from viewers like you and do not always reflect the views of this station.
powered by Disqus