Gov. Beshear’s call for Special Session successful as State Pension Bill passes
June 27, 2008
The Ky. Senate quickly approved a bill Friday morning, that will change the state’s underfunded pension system. Gov. Beshear said in Williamstown thursday that this bill shows he and the legislature can work together for the betterment of the state.
House Speaker Jody Richards promptly signed the bill and sent it to Gov. Beshear for his signature.
The bill raises the age and length of service for future workers in order to qualify for pension benefits.
It also requires current and future state workers to pay one percent more of their salaries for their retirement health insurance, and sets limits of 1.5 percent to the cost of living increase for employees’ pensions. Current law allows for up to 5 percent cost of living boosts based on inflation. This new bill will affect current retirees who may be pinched as inflation continues to grow more than 1.5% per year.