With Senate President Robert Stivers and House Speaker Jeff Hoover by his side, Kentucky Governor Matt Bevin announced on Wednesday a 10-poiint plan to save Kentucky’s pension system for teachers and other state retirees.
“Nothing is changing for retirees,” Bevin said during the press conference.
The 10-point plan included:
- The pension plan will save pension systems while meeting legal and moral obligations owed to current teachers and state workers.
- Requires full payment of ARC and creates a new funding formula that mandates hundreds of millions more into every retirement plan, making them healthier and solvent sooner
- For those still working: no increase to the full retirement age, and current defined benefits remain in place until the employee reaches the promised level of unreduced pension benefit
- For those retired: No claw backs or reductions to pension checks, and healthcare benefits are protected
- For future, non-hazardous employees and teachers: enrollment in a defined contribution retirement plan will provide comparable retirement benefits
- For current and future, hazardous employees: will continue in the same system they are in now
- Closes loophole to ensure payment of death benefits for the families of hazardous employees
- Stops defined benefits plan for all legislators, moving them into the same defined contribution plan as other state employees under the jurisdiction of the KRS board
- No emergency clause: law will not go into effect until July 1, 2018
- Structural changes should improve the Commonwealth’s rating with credit agencies, which have downgraded Kentucky’s rating, citing unfunded pension burdens
The announced plan addresses the administration’s efforts to draft a bill that will be brought to both the House and Senate for a vote in the near future during a special session to be called by the Governor. A special session is a minimum of five working days for Kentucky’s senators and representatives.