letter editor2 300KENTUCKY (3/5/18) — The General Assembly has finally produced a bill regarding public pensions and the fine print reveals some remarkable facts about its potential impact. The “fine print” in question is the actuarial analysis performed on behalf of Kentucky Retirement Systems regarding those aspects of Senate Bill 1 that affect KRS.

S.B. 1 would reduce benefits in areas such as compensatory and sick time. Would those changes reduce long-term liabilities? According to the analysis, the answer is “no.” Those changes would have minimal impact. Would a new optional defined contribution plan reduce liabilities? The actuary says “the plan will not decrease the employer cost,” but will simply shift the risks to the workers. Keep in mind, employer risks already were reduced when a hybrid plan was adopted in 2014. That plan does not guarantee a specific pension benefit amount.

What about the legality of benefit reductions? Attorney General Andy Beshear has identified multiple violations of contract law in Senate Bill 1 relating to KRS.

As KRS stakeholders, we have made substantial sacrifices over the past decade through numerous changes in our pension benefits and plan design.

The path forward is clear: the General Assembly must modernize the state’s tax structure to meet unmet needs and avoid further draconian cuts in important services.

Jim Carroll
President, Kentucky Government Retirees
Frankfort, Ky.

sitelogosm© Copyright 2008 - 2018 SurfKY News Group, Inc. All rights reserved.
This material may not be published, broadcast, or rewritten without permission.

Click here to subscribe to receive daily updates by email.

Most Read This Week

Jun 17, 2018 55551

UPDATE: Hopkinsville Father Mourning Loss of Son

by Doreen Dennis, SurfKY News
Jun 17, 2018 7965

Sunday Shopper Leads Madisonville Police in Brief Pursuit

by Doreen Dennis, SurfKY News
Jun 17, 2018 7162

Murder Victim Found in Hopkinsville Identified

by Doreen Dennis, SurfKY News
Jun 19, 2018 4648

UPDATE: U.S. 431 Open after Accident Near Moorman

by Paul Moore

 

Most Read This Month

Jun 17, 2018 55551

UPDATE: Hopkinsville Father Mourning Loss of Son

by Doreen Dennis, SurfKY News
Jun 11, 2018 18064

KSP Detonates Grenade found north of Hanson

by Doreen Dennis, SurfKY News

Weather brought to you by

90°
32°
°F | °C
Partly Cloudy
Humidity: 49%
Wed
Thunderstorms
74 | 91
23 | 32
Thu
Thunderstorms
72 | 77
22 | 25
Fri
Thunderstorms
69 | 81
20 | 27
Sat
Thunderstorms
67 | 80
19 | 26

Stories Trending Today

Desmond
Jun 17, 2018 55551

UPDATE: Hopkinsville Father Mourning Loss of Son

by Doreen Dennis, SurfKY News
Carlisle M
Jun 17, 2018 7965

Sunday Shopper Leads Madisonville Police in Brief Pursuit

by Doreen Dennis, SurfKY News
Desmond
Jun 18, 2018 7162

Murder Victim Found in Hopkinsville Identified

by Doreen Dennis, SurfKY News
moorman wreck
Jun 19, 2018 4648

UPDATE: U.S. 431 Open after Accident Near Moorman

by Paul Moore

Market Report

Market Report brought to you by