Like many other states, Kentucky’s public pension systems are faced with huge unfunded liabilities and need significant reform. SB 2 (Thayer) would establish a 401-K type of retirement system for all new state employees, legislators and judges beginning July 1, 2012.
This will bring state employee pensions more in line with the private sector. Kentucky lawmakers took positive steps to reform the state’s pension system in 2008, but more needs to be done to address Kentucky’s $28 billion unfunded pension liability. This proposal would not change the benefits for current employees or retirees, but would set up a defined contribution system for future state employees. Recently, the Kentucky League of Cities who represents mayors and cities across the state announced its support for the legislation.
SB 2 continues to await action in the House State Government Committee. Please call your State Representative at 1-800-372-7181 and urge him or her to move SB 2 forward.