Special Session to begin June 23rd
FRANKFORT, KY - Governor Steve Beshear today issued the call for a special session of the General Assembly to convene on Monday, June 23, 2008, to act on the state’s public pension crisis.
“The current condition of the public employee pension systems in Kentucky puts the retirement of Kentucky’s teachers, firefighters, police officers, emergency workers and city, county and state employees at risk,” said Gov. Beshear. “These people have worked hard and earned the right to be financially secure when they retire. The reforms that the House and Senate leadership and I have agreed to will go a long way toward placing the pension systems on a sound financial footing.”
Passage of pension reform legislation is projected to save nearly $500 million annually from the state’s and local governments’ obligations to fund the pension system. It is expected to provide approximately $56 million in immediate relief to county and city governments and school districts. The proposed legislation would also stop the costly practice of double dipping by state retirees.
Gov. Beshear also issued an Executive Order on May 29th that established a working group to study ways to improve investment return for pension funds and other unresolved issues. It is made up of experts from government, the private sector, cities and counties, and employee groups.
While states across the nation are facing similar pension liabilities, Gov. Beshear has received national attention for his work to resolve Kentucky’s pension crisis. A June 12, 2008, USA Today article stated: “This year, Kentucky is the only state taking a stab at restoring pension finances.”
“I am pleased that our legislative leaders have taken their work seriously and agreement on key reform issues has been reached,” said Gov. Beshear.
Click here to view the proclamation.
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Listen to Governor Beshear's statement (4.94MB MP3)
Watch video from the press conference (15.5MB Windows Media)