Senate Passes Government Pension Reform Bill

By: Associated Press
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. 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 © 2002-2015 - Designed by Gray Digital Media - Powered by Clickability 190282921 -
Gray Television, Inc.