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Administration April 7, 2008
KY Legislators Fail to Reach Agreement on Pension Reform
April 7, 2008 (PLANSPONSOR.com) - A Kentucky General
Assembly committee failed to reach an agreement on a pension
reform bill designed to address the system's $26.6 billion
shortfall before leaving for an 11-day recess.
Reported by Rebecca Moore
The Cincinnati Enquirer reports that the committee
from both chambers charged with working on the final bill
could continue negotiations during the legislative veto
period, but any bill passed after that could be vetoed
and legislators would not be able to override it. The
committee is unable to agree on which version of the bill
– Senate or House – to work from.
Senate negotiators say the House is not offering as many
compromises as they have. The Senate version of the bill
made deeper cuts to future hires’ benefits and called for
the creation of an annuity savings plan for new hires
(See
KY Senate Passes Out Pension Reform
Measure
) – an idea the House strongly rejects, according to the
Enquirer.
“We feel the defined-benefit plan is the only acceptable retirement plan for our employees,” said Representative Mike Cherry, who is co-chairman of the committee negotiating the bill, according to the news report. The House version of the bill calls for a greater years-of-service requirement for retirement, among other things (See KY Plan to Boost Pensions Increases Years of Service Requirement ).