Mon December 29, 2008
By Carrie Pond
Frankfort, KY – As they work to cut budget gaps, cities and counties in Kentucky may get some relief on their employee retirement costs. Governor Steve Beshear has announced more recommendations for pension reform in the upcoming legislative session. He wants to allow cities and counties to spread out their required contributions over ten years rather than the current five-year period.
"It will save, or provide immediate relief, to cities and counties of about 37 and a half million dollars for the next fiscal year that they can use to balance their budgets and perhaps not have to cut as many of the services that they will otherwise have to do during this economic downturn."
Beshear expects the move to provide cities and counties with more than 37-million dollars this fiscal year. Some state retirement officials are concerned the move will cost local governments more than it saves by encouraging double-dipping. In that case, employees working in two positions wouldn't have to make a contribution, but employers would still have to do so.