Kentucky's Pension Disaster Update
The Courier-Journal wrote on the disaster that is the state's rich pension program, sounding much like a broken record in a time period that really extends over the last two years.
Facing a bleak budget situation, the 2010 legislature will nevertheless be asked to increase the General Fund contribution to the public employee retirement plans by at least $74 million in the next two-year budget period, according to early Legislative Research Commission estimates.
-SNIP-
The KRS pension fund, which had a value of $9.81 billion as of June 30, suffered a 17 percent decline last fiscal year. The $2 billion health insurance fund experienced a 23 percent loss.
In the summer of 2008 the legislature passed House Bill 1, which put the state on a 20-year timeline to get state pension systems back to full funding.
That requires a jump in the state's contribution rate from 11.5 percent of payroll for non-hazardous-duty workers this fiscal year to 16.04 percent next year and 18.6 percent the following year, according to preliminary retirement systems estimates.
But it remains to be seen whether the legislature and Gov. Steve Beshear will stick to that funding timeline. Lawmakers could vote to suspend it.
Does it really remain to be seen?
Last session saw the legislature borrow $50 million from the fund as well as allow counties and cities to forgo their required contributions.
Is there actually any suspense about what they're going to do this year?
Maybe this horrible budget situation will prompt actual reform! (right)
