Kentucky legislative leaders say solutions on how to pay for Kentucky’s underfunded pensions won’t likely be addressed in the 2013 legislative session.
Both House Speaker Greg Stumbo and Senate President Robert Stivers say there will likely be a bill to introduce changes to the pension systems. But they also agree that such a bill is unlikely to deal how to fund the changes.
What they disagree on is when to deal with the funding solutions. Stumbo says pension funding should be dealt with in a special session, hand in hand with tax reform.
“There’ll be a bill, I don’t know whether it will be addressed," Stumbo says. "I think that we need, probably, to address the entire issue and that include the funding mechanism."
But Stivers says lawmakers should pass the changes now and deal with fully funding the pension system starting in 2014, when a new budget must be passed.
Kentucky's state pension plans have problems, and a bipartisan legislative task force has approved sweeping recommendations to overhaul them -- including putting new employees in a hybrid plans akin to 401Ks.
The task force -- with an 11-1 vote -- is recommending that the General Assembly start fully funding their pension contributions starting with the next budget in 2014. Lawmakers’ inability to do that is part of the pension plans problems.
For months, Kentucky lawmakers have been studying how to handle Kentucky's underfunded pension system. But the problems of the system have been occurring for longer than just a few months. Various proposals are on the table, but lawmakers may not have much time to come to a compromise.