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Kentucky to Move All New Hires to 401(k) Type Plan
By The Associated Press
FRANKFORT, KY - Kentucky's Republican leaders say they will close the state's troubled pension system for most new employees, offering them a 401(k)-style plan as they seek to stop the bleeding in one of the country's worst funded public retirement plans.
 
Governor Matt Bevin and the state's top two legislative leaders unveiled the plan Wednesday. It still must pass the state legislature, most likely during a special session Bevin plans to call before the end of the year.
 
Current workers would continue accruing benefits under the current system until they turn 65 or hit 27 years of service, when they would be moved into a 401(k)-style plan.

Kentucky House Speaker Jeff Hoover said the plan does not have a "clawback" of previously-awarded COLA for current retirees, so there will be no reduction in their pension checks. 

Hazardous duty workers, such as police officers and firefighters, will continue in the same system they are in now.  

The defined benefits plan for all legislators will be stopped, moving them into the same defined contribution plan as other state employees under the jurisdiction of the KRS Board.
 
Kentucky is among many states struggling to pay retirement benefits. In June, Moody's found the unfunded obligations for all public employees to be $4 trillion.





On the Net:

Outline of New Kentucky Retirement Plan


Published 10:54 AM, Wednesday Oct. 18, 2017
Updated 08:54 PM, Monday Oct. 23, 2017

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