The Morehead News

Update

March 27, 2013

Pension reform package passes

03/27/13 — FRANKFORT - It went down to the wire and a lot of people didn’t like either the final product or the process.

But Kentucky’s General Assembly managed to pass a pension reform package on the final night of the 2013 session.

The last-minute compromise package made some changes in the bill originally passed by the Republican-controlled Senate, but it retained, at least in philosophy, most of the features of the Senate bill.

After July 2014 new state employees will be placed into a half-defined benefit, half-cash balance plan. After Jan. 1, 2014, all new legislators and judges will be placed into the same kind of system. The plan will guarantee a minimum of a 4 percent investment return and none of it will affect existing employees or retirees.

Nor does it affect teachers. But it does apply to classified employees in the school system who are represented by the Kentucky Education Association.

All day Tuesday, lobbyists on both sides of the issue thronged the capitol and rank-and-file lawmakers wondered if there would be a vote and, if there were one, would the measure pass?

No one seemed pleased with the state of things on the final day of the 2013 General Assembly – but then not much had happened by dinner time Tuesday night.

Just as happened Monday,leaders of both chambers shuttled back and forth from their respective chamber to the Gov. Steve Beshear’s office. Each time House Speaker Greg Stumbo, D-Prestonsburg, emerged he seemed to be carrying a slightly different plan to fund the annually required contribution to the pension system.

Gone was a 2-cent reduction in the gasoline tax – an idea which House Democrats refused to go along with Monday night. Monday’s plan, including the change in the gas tax in 2014 and some other minor tax changes, was supposed to produce about $110 million.

Text Only
Update
The Morehead News on Facebook
Poll

The Kentucky Department of Corrections is allowing Rowan County to plan for a 300-bed jail. Do you support building a jail that is nearly four times larger than the current facility?

Yes
No
     View Results