Kentucky Public Pension Coalition

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The 2013 Session of the Kentucky General Assembly adjourned sine die just before midnight on Tuesday March 26^th , but not before legislators passed a pension overhaul package that eroded retirement security for Kentucky’s public employees and retirees. Lawmakers are touting this deal as an example of representative democracy, but the process was hardly brokered in a democratic fashion. In reality, lawmakers and the Governor shook hands behind closed doors and needlessly rushed the deal in the last two days of the session, presenting a package that is disastrous for taxpayers, state employees and retirees.

With only four hours left in the Session legislators passed Free Conference Committee Reports for Senate Bill 2 and HB 440. Senate Bill 2, FCCR a 228 page document passed the House of Representatives 70-28 with 2 not voting and the Senate 32-6 (click here to view vote history). SB 2, FCCR moved public employees hired after January 1, 2014 into a cash balance plan, effectively ended cost of living increases, increases the number of trustees overseeing the Kentucky Retirement Systems to thirteen by providing that the Governor appoint three additional trustees to the Board of Trustees of the Kentucky Retirement System, one trustee from a list of three submitted by the Kentucky League of Cities, one trustee from a list of three submitted by the Kentucky Association of Counties and one trustee from a list of three submitted by the Kentucky School Boards Association, while only providing for the election of one additional trustee from the members and retirees of the County Employees Retirement System and includes funding language requiring the legislature to begin contributing the full actuarially required contribution rate to the state retirement systems “in fiscal years on or after July 1, 2014”. Remember Kentucky’s taxpaying public employees and retirees paid their full contribution on time, every time and were not welcome in the last minute negotiations that brokered this legislation. With a January 1, 2014 effective date for implementation of the cash balance plan and a July 1, 2014 on or after date for full funding of the actuarially required contribution, makes you wonder about the rush. HB 440, FCCR a 78 page document passed the House of Representatives 82-17 with 1 not voting and the Senate 35-3 (click here for vote history) and provides for $65.7 million in additional General Fund dollars but includes a $34 million cut to the Road Fund for a net impact of $31.7 million, as outlined by the Kentucky Center for Economic Policy.

Click here for the March 29, 2013 Press Release

Please take the time to thank the following for their “no vote” on Senate Bill 2 in support of Kentucky’s public employees and retirees; Senators Doc Blevins, Julian Carroll, Denise Harper Angel, Ray Jones, Kathy Stein and Robin Webb along with Representatives Johnny Bell, Hubie Collins, Jesse Crenshaw, Jeff Donohue, C.B. Embry, Jr., Derrick Graham, Richard Henderson, Dennis Horlander, Joni Jenkins, Jimmie Lee, Mary Lou Marzian, Reginald Meeks, Charlie Miller, Rick Nelson, Sannie Overly, Darryl Owens, Tanya Pullin, Jody Richards, Tom Riner, Carl Rollins, Kevin Sinnette, Rita Smart, Jimmy Stewart, Gerald Watkins, Jim Wayne, Susan Westrom, Brent Yonts and Jill York. Please make that phone call, write a personal note or send an email showing your appreciation!

House approves pension bill and funding measure - Feb. 27, 2013 - Click here

Click here to view the Senate Bill 2 as passed by the Kentucky State Senate Thursday February 7^th 33-5.

We would like to thank Senators Blevins, Buford, Carroll, Jones and Webb for their support of Kentucky’s public employees and retirees.

Please click here to see the February 6^th letter to the Kentucky Judicial Form Retirement System from the actuary acknowledging receipt of a copy of Senate Bill 2, and a request for an actuarial analysis , the day that State & Local Government passed the bill 10-0. The actuary’s response to the Kentucky Retirement Systems’ request for the actuarial analysis, dated February 7^th ,follows.

We are heartened to hear the Kentucky House will hold off on moving forward with this measure without an accurate scoring of its price-tag.

The Kentucky Public Pension Coalition was formed to protect and defend retirement security for public employees and retirees in the Commonwealth of Kentucky. Our mission is to ensure that the Kentucky retirement system is fully funded so it continues to provide the foundation of a secure retirement for public employees and retirees.