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Writing for the Frankfort State-Journal, Larry Totten says that proposed changes to Kentucky’s public pension system will have deep consequences for state employees and retirees.
“Every current public employee and retiree in every state pension plan would be affected in some way if all of the recommendations made were adopted … what was put forth in the report was a seismic shift in the way the state, counties and cities would deal with their employees and retirees.”
A report to the Public Pension Oversight Board suggests moving from a traditional pension plan to a 401 (k) scheme, a move that could find current “employees (going) to work one day and find themselves forced into contributing into a 401(k) plan that did not exist when they were hired,” he continues.
Totten adds that while employees have consistently made their required contributions to the pension plan, the same can’t be said for employer contributions, which “were not so consistent.”
More: State budgets have “purposefully underfunded pensions.

ARIA provides a forum for an informed discussion on retirement income adequacy, and other related issues, including pension and retirement coverage, and defined benefit pension plans – ARIA pensions blog, 12 Dunlop Street, Barrie, ON, L4N 1V6 – sitemanager@ariapensions.ca

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