Gov. Matt Bevin and Republican leaders of the state legislature have released a proposal that would make major changes to the retirement plans for teachers and other state workers.
The proposal would phase out the state’s use of a defined-benefit pension system, which guarantees payments to state employees throughout their retirements.
Instead, nearly all future and some current employees would be moved into defined contribution plans like 401(k)s, which will require the state to put less money into employee retirements.
Bevin said the changes are necessary to keep the pension system alive.
“If you are a retiree, if you are working toward retirement and hoping to retire at some point, you should be rejoicing at this bill,” Bevin said.