Pension bill won’t include mandatory 401(k)-style plan
FRANKFORT, Ky. (AP) – The Kentucky Senate’s top Republican leader says a forthcoming bill to overhaul one of the country’s worst-funded public pension systems will not include a mandatory move to a 401(k)-style plan.
Senate President Robert Stivers said the bill, which has yet to be filed, will not require all new hires and employees who reach 27 years of service to move to a 401(k)-style plan. That was the cornerstone of an earlier proposal last year that was endorsed by Republican Gov. Matt Bevin and the Kentucky Chamber of Commerce.
But that proposal prompted fierce opposition from hundreds of thousands of state workers and public school teachers in the first election year after voters gave Republicans full control of the state legislature.