FRANKFORT, KY (WAVE) - Gov. Matt Bevin (R-KY) unveiled "Keeping the Promise," a comprehensive plan addressing Kentucky's $40 billion public pension problem.
Senate President Robert Stivers and House Speaker Jeff Hoover, both republicans, joined Bevin at the announcement Wednesday. Bevin said if the plan passes, it would likely fix the problem within 34 years.
Bevin says it would address the moral and legal obligations they have made to the workers under the pension program.
"The new plan requires a full payment of the Actuarially Required Contribution (ARC) and a new formula that mandates hundreds of millions more into every retirement plan," he said.
One of the highlights would be a switch to 401K retirement plans for all future, non-hazardous employees. This includes teachers and other government workers who are not in a physical line of duty.
They also ensured those who are in the line of duty, and those who will be a part of the hazardous work-line, would not see any changes to their plan. That would include future employees.
Another point Bevin stressed was that current retirees would not have to give back any money that has already been disbursed, and they are protected from any health care benefit reduction under this plan.
The fiscal changes, he said, are mandatory if they plan on no longer "kicking the can down the road."
At this point Bevin said they are still dotting their i's and crossing their t's. He said the bill will be available for view sometime soon.
As for a special session, Bevin has not announced a date. He said he will call one when he is ready.