Special Session On Pension Reform Likely Soon

by Rick Howlett on June 11, 2008

From Kentucky Public Radio’s Tony McVeigh 

Kentucky lawmakers appear headed for a special session on state pension system reform. House and Senate leaders signed off on an agreement that will require the state to pay its full financial obligation to the system by 2025. The current system is 26-billion dollars in the red. But Senate President David Williams warns the agreement won’t mean immediate savings for the state.

“Since we’re not making our actuarially required contribution to the retirement system and since the contributions that we are making are going to have increases percentages as we attempt to make our actuarially required contributions, there’s not going to be any general fund savings in this coming biennium,” Williams said.

Governor Beshear is in Japan on an economic development mission, but one of his top aides says the agreement captures the spirit of what the governor is seeking and likely will result in a special session. Lawmakers believe they will need no more than five days to get the job done.

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