Tagged: pensions

The Kentucky state Senate passed a bill Thursday that would reform the majority of the state's pension system, 33-5. 

Senate Bill 2 reflects the recommendations of the legislative task force assigned to study possible solutions to the problem over the summer.

Cost of living adjustments would be suspended under the bill. The bill would also create a hybrid plan similar to a 401K whose rate of return would be guaranteed by the state.

FRANKFORT — An effort to reform Kentucky's underfunded pension systems passed in its first hearing Wednesday from a state Senate committee meeting.

Senate Bill 2 stems from the recommendations of a legislative task force that met over the summer to try and solve the pension problems.

It includes a suspension of cost of living adjustments and creates a new hybrid plan that acts like a 401K with a promised rate of return.

Another change in Kentucky’s financial outlook has the state’s business leaders calling on the General Assembly for immediate pension reforms.

Standard and Poor’s has changed Kentucky’s outlook to negative, citing the state's large unfunded pension obligations as the main reason.

Figuring out how to finance a plan to shore up Kentucky public employees' pensions will be the General Assembly's greatest task in 2013, two legislative leaders said.

A legislative task force has suggested several ways to brace  state employee pensions, but passing legislation and paying for it will be difficult. Lawmakers' proposals include relying on existing economic growth and raising taxes on Kentuckians with higher earnings.

House Speaker Greg Stumbo said he hasn't settled on a solution.