Republican lawmakers in Kentucky have resurrected a bill to overhaul one of the nation’s worst-funded pension systems.
The 291-page proposal was approved Thursday (3/29) by a legislative committee moments after it was released publicly. The new bill preserves most benefits for current teachers and state workers, but would move new hires into a hybrid cash balance plan.
The bill was written so quickly it has not been reviewed by actuaries, so lawmakers don’t know how the bill will financially impact the retirement system. Bill sponsor Republican Representative John “Bam” Carney said lawmakers expect it to save $300 million over 30 years.
Kentucky’s retirement systems are $41 billion short of the money that will be required to pay benefits over the next 30 years. The bill passed a full vote of the house Thursday night with a vote of 49 to 46. While those 49 votes were all from republicans, 11 GOP representatives voted against the bill. Five representatives did not vote.
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