Bill Would Change Legislative Retirement Plan

From Brenna Angel, Kentucky Public Radio

Kentucky lawmakers would no longer receive a pension for their service in the General Assembly under a bill pre-filed for next year’s session. Republican Sen. Jimmy Higdon says his proposal would establish a defined contribution system and close the Legislators’ Retirement Plan to anyone who takes office after July 1, 2012.

“Future state representatives and state senators will be in a 401(k)-type retirement plan, similar to what some of us would like to see done for state government as well.”

The Legislators’ Retirement Plan currently has an unfunded liability of 41 percent.

Higdon says changing the retirement plan for lawmakers could pave the way for switching to a 401(k) style plan for teachers and state workers. The Marion County senator also filed pre-filed legislation Wednesday that would close a 2005 pension loophole that allows lawmakers to use higher paying state jobs to calculate their legislative pension.

Democratic Rep. Mike Cherry says he plans to file a similar measure in the upcoming session.