One of the state lawmakers tasked with reforming Kentucky’s retirement systems says if structural changes aren’t made, the plans can’t be salvaged. The public pension systems are facing a combined unfunded liability of more than 30-billion-dollars.
State Senator Joe Bowen of Owensboro co-chairs the Public Pension Oversight Board. He anticipates less generous plans for new hires and possibly some changes in benefits for current employees. Bowen also thinks the County Employees Retirement System should separate from the Kentucky Retirement Systems.
"One, they're better funded," he said. "Two, we appropriate no money to that plan. Three, they are supposed to be operating independently anyway."
Governor Matt Bevin has said he plans to call lawmakers back to Frankfort for a special session to overhaul the state's tax code. The goal is to generate more revenue to pay off the pension debt. But Republican legislative leaders say little progress has been made towards such a plan.
