Sixty-five-page report shows 2013 pension reforms better for employees, taxpayers
FRANKFORT, Ky. (Dec. 20, 2019) – After years of waiting, the people of Kentucky now know the proposed 2017 pension reforms would have left the Commonwealth worse off, Gov. Beshear said when releasing the documents long-withheld by the former administration.
The analysis commissioned by the former administration shows the proposed 2017 reforms costing the state retirement systems more and negatively affecting the retirements of educators and public employees, compared to the existing, bipartisan reforms made in 2013.
“Today, less than two weeks into my administration, I turned over the documents and let employees and taxpayers know the truth – the proposed 2017 reforms would have cost the state more and forced out many more career employees,” Gov. Beshear said. “If we are truly going to solve the problems we face as a Commonwealth, we must work together in an honest and open way.”
The report indicates that over 30 years, the path to full funding of the liability is longer compared to the 2013 reforms and that the rise in funded ratios occurs more slowly, which makes the pension system more sensitive to investment risk during that time. The 2017 proposal would have also pressured career employees to retire before they were ready, because employees would no longer accrue benefits after they reach full retirement age.
As the attorney general, in 2018, Gov. Beshear found that the previous administration violated the Kentucky Open Records Act by withholding the analysis. Judge Phillip Shepherd in Franklin Circuit Court upheld the attorney general’s open records decision and ordered that the records be immediately released. The prior administration then sought and received a stay from the Kentucky Court of Appeals, which the case is now before. Until Friday, the records had not been released.
Since taking office, Gov. Beshear has been committed to transparency and working with everyone to build a bigger, brighter future for every Kentucky family.
Gov. Beshear is requiring all state agencies to accept requests for public records via email, eliminating the need for a printer or fax, though Kentuckians can still request records in person, through fax or by mail.
Gov. Beshear also announced Kentuckians could email open records requests for his office to GovOpenRecords@ky.gov. Faxed requests can be sent to 502-564-6858. Send mailed requests to Attn: Records Custodian, 700 Capitol Ave., Suite 100, Frankfort, Ky. 40601.
Click here to review the actuarial analysis.