GOP Plan Doesn’t Fix Pension Debt
Over the last two days, Gov.
Instead of speaking to state media about his plan, Bevin was interviewed Monday by
Bevin said he would call a special session in the next couple of weeks with a proposal for moving new hires to a defined contribution plan to address the continuing unfunded liabilities in the state pension systems.
"We have an obligation and we do not have that money (the unfunded liabilities)," Bevin said. "It's a ridiculous amount of money we owe. To fix this, will require a 30-year fix...you can't perpetuate an insolvent system. Some of the people most adamantly opposed (to the proposal) are those that don't just understand it."
Bevin told
While the estimated unfunded liabilities currently are at
When considering how this will not only affect current retirees if their pension system is closed, the economic impact on communities in which they live and spend money and the quality of the state's upcoming workforce,Bevin and the Republican lawmakers touting this proposal are inflating the problem with a difference between
Most notably, the proposal doesn't address ways to fund the pension funding shortfalls or the costs associated with transitioning to a defined contribution plan and doesn't take into account the devastating effect the transition costs would have on an already weakened state budget.
When considering the costs of transitioning to a 401 (k)-style system in
According to the report, once a pension system is closed, the system has less investment power. A copy of that report obtained by the Kentucky Government Retirees group can be found here (https://www.facebook.com/pg/KentuckyGovernmentRetirees/photos/?tab=album&album_id=1664908643581372).
We requested "copies of documents referenced to as an analysis, legal or otherwise, during the public hearing of
The Governor's Office Deputy General Counsel
Alexander responded that all the requested records were either preliminary drafts exempted from open records request or fell under client and attorney privilege.
While the
ALEC, as noted in the link above, has pushed for states to do away with pensions and move to defined contribution, 401(k)-style plans for several years. It shouldn't also surprise
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