Kentucky Public Pension Fund Faces $12.5 Billion Shortfall

Tuesday, 30 Oct 2012 10:37 AM

By Sandy Fitzgerald

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
Kentucky lawmakers said Monday the state’s public pension funds need billions of dollars more to stay solvent and recipients and taxpayers will share the pain.
 
A legislative task force meeting in Frankfort heard reform proposals from the Pew Center on the States and the Laura and John Arnold Foundation Monday, reports the Lexington Herald-Leader.

Lawmakers hope to pass a pension bill in 2013.
 
The state is facing a $12.5 billion pension shortfall for state and local government workers who will draw benefits from the Kentucky Retirement Systems, plus a smaller system for judges and legislators. The shortfall doesn’t include promised health benefits for retirees or a third pension system for teachers.
 
The experts said the state can close the gap by putting more money in, making workers contribute more, provide lower retirement benefits, tax retirement income, or issue a $780 million state bond.
 
“If Kentucky continues to delay, it could become an unmanageable crisis,” the Pew Center report said. “This task force has the chance to make a real, lasting improvement in Kentucky's fiscal health and put the commonwealth on a credible path towards closing its funding gap."
 
Several lawmakers said they don’t want to change retirement benefits or ask them to pay more, and Democratic Rep. Brent Yonts said asking employees for concessions “could become violent.”
 
But Sen. Damon Thayer, co-chairman of the task force, said many taxpayers are struggling with their own financial problems and its unreasonable to ask them to dig deep to finance pensions better than the ones they’ll get themselves.

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Send me more news as it happens.
 
 
Get me on The Wire
Send me more news as it happens.
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
You May Also Like

Cambodia HIV Outbreak: 100-Plus People Diagnosed; Investigation Sought

Friday, 19 Dec 2014 18:50 PM

More than 100 HIV infections in a single Cambodian village have spurred the country's prime minister to ask for an inves . . .

Slender Man Case: Two Girls Competent to Stand Trial in Stabbing

Friday, 19 Dec 2014 18:26 PM

Two girls who allegedly stabbed a 12-year-old friend over the online game Slender Man are competent to stand trial for a . . .

Kate Upton Sexiest Woman Alive; Model Apologizes to Teen Brother

Friday, 19 Dec 2014 17:52 PM

Model Kate Upton was selected as People magazine's first Sexiest Woman Alive, a month after Chris Hemsworth received the . . .

Top Stories

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved