Tuesday, January 8, 2013

Kentucky over $33 BILLION DOLLARS in the pension hole

FRANKFORT, KY - Kentucky workers are trying to save for retirement, but can the Commonwealth cover the cost for its employees? Louisville's Mayor says he's concerned it can. The same with Lexington's Mayor. They are calling on lawmakers to do something during their 2013 session which convened Tuesday.

Nearly all the lawmakers convening at the State Capitol for the first day of the news session of 2013 agree pension reform is the number one priority.

With the pomp and circumstance of opening a new Kentucky General Assembly and swearing in the first new Senate president in 12 years out of the way, the men and women who serve the Commonwealth say they are ready to get down to business. Top on the list, "pension reform," said Republican floor leader Senator Damon Thayer.

It's not a sexy topic, but Senator Thayer said the state has a $33 billion unfunded liability it has to deal with. It's basically promised money to employees when they retire. The City of Louisville alone has $18 billion of that. Everyone from city leaders to the Governor agree it's a problem that's been building for almost a decade. "The longer we wait on pension reform the worse the problem gets," said Thayer.

That is why the new floor leader will be responsible for a bill that solves the problem before taxpayers have to foot the bill. Senator Thayer said the solution is similar to a recommendation from a task force that would change the system into one that is similar to private sector plans. "It shares the risk between the employer and the employee and provides a good retirement for employees when they leave public service."

Thayer believes the state can cover the costs. "If we have moderate growth in revenues over the next biennium we will have more than enough money to meet the actuarially funded contribution without raising taxes."

There are still 138 other lawmakers who get to weigh in. Thayer said he's hopeful the bill can get passed in the 30 day session, but it's unclear if a funding plan can be agreed on in the same time period.

13 comments:

Anonymous said...

The Kentucky legislature will have a LOT more urgency in tackling their problems then the incompetent state of Illinois, where there is no political will to propose a workable solution that involves anything other than massive tax hikes.

Anonymous said...

Because the crooks in Illinois don't want you to see who the clouted ones are that stole the money.

Anonymous said...

You can't pay the pensions when obama is keeping interest rates at zero or you pay one tenth of the pension be ready to belt tighten.

Anonymous said...

Madigan and Cullerton just continue to play hide the weenie in the state legislature. These two fucking criminals should be in a lockup and not in Springfield stealing our tax dollars.

Anonymous said...

I love how they call it pension reform call it what it is PENSION CUTS.

Anonymous said...

Please, Kentucky is small time. Call me when they get to $90 billion.

Anonymous said...

EVERy state is underfunded, we thought only in corrupt Illinos, boy were we wrong. Pensions cannot, will not sustain themselves. As technology advances, less people can do more jobs. Thus, less NEW employees equates to less money in the pension pot. This money is used up by current retirees and nothing is available for the future. Simple math.

Anonymous said...

Stop giving away taxpayer money to bullshit social programs, welfare, schools and illegal aliens. Then you will have a surplus of $$$

Anonymous said...

Anonymous said...
Stop giving away taxpayer money to bullshit social programs, welfare, schools and illegal aliens. Then you will have a surplus of $$$

January 9, 2013 8:41 AM
And all the fucking lazy teachers and state workers

Anonymous said...

Anonymous said...
You can't pay the pensions when obama is keeping interest rates at zero or you pay one tenth of the pension be ready to belt tighten.

January 8, 2013 11:03 PM

If the pension fund was getting 10%interest this wouldn't be a problem.

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