Kentucky Chamber Announces Support of Proposed Pension Reform Framework
On Friday, the Kentucky Chamber released the following statement announcing the organization’s support of the recently announced pension reform framework:
The Kentucky Chamber of Commerce Board of Directors voted Thursday to give its strong support for the pension reform framework offered by Gov. Matt Bevin, Senate President Robert Stivers and House Speaker Jeff Hoover. The ‘Keeping the Promise’ framework offers an unprecedented opportunity to make meaningful, sustainable changes in Kentucky’s public pension systems to address the crisis that threatens the financial viability of the state. The business community looks forward to learning more from policymakers about the details of the proposal and working with them as the plan is finalized and legislation is considered.
Inaction is not an option.
The Chamber cited the following as being among the proposal’s positive elements:
- Stops out-of-control increases in the state’s pension debt and creates a plan to pay off that debt
- Addresses the critical need for immediate action
- Protects the benefits of current retirees
- Makes public employment more attractive to younger workers who value the flexibility and portability provided by defined contribution plans
- Tells national credit rating agencies that Kentucky is serious about pension reform, improving the state’s prospects for upgraded ratings and lower public borrowing costs
Last week, Governor Matt Bevin, Senate President Robert Stivers and Speaker of the House Jeff Hoover released the framework to address Kentucky’s pension crisis. The pension reform bill is expected to be released soon, with a special legislative session before the year ends. Read more about the framework here.