The Kentucky Chamber of Commerce has long been concerned about the unfunded liability of the Kentucky Retirement System and has advocated for a number of changes to the improve the system and its financial stability.
Recently, Kentucky Chamber President and CEO Dave Adkisson sent a letter to Appropriations and Revenue Co-Chairs, Sen. Chris McDaniel and Rep. Rick Rand sharing the business communities’ concerns, especially that the proposed and enacted state budget does not clearly indicate whether employer contributions for retirement are adequate to meet the systems’ liabilities. Currently, when the Governor provides his proposed budget to the legislature, it is not clear whether it is providing enough funding to ensure the systems have adequate revenues to pay pension benefits and their unfunded liability.
The Kentucky Chamber is asking the Legislative Research Commission to exercise its authority and amend the budget instructions to ask the Governor to provide what percentage of the Annual Require Contribution (ARC) and the source of funds before presenting it before the legislature and the public.
“The absence of clear public information about the adequacy of pension funding in the budget process makes it more likely that Kentucky’s pension systems will be underfunded,” Adkisson wrote.
This simple step would greatly enhance the transparency of the system and ensure obligations are being met.
To see a copy of the full letter, click here.