KY 'will have to' move to 401(k)-like set-up for future state workers, Stumbo says

12/07/2010 07:24 PM

Democratic House Speaker Greg Stumbo joined a growing list of current and former state leaders who say Kentucky must change its retirement set-up for future state workers to more of a 401(k)-type arrangement.

“I’ll get some grief for saying that,” he said on Pure Politics Tuesday.

Current state employees are set to receive monthly pension checks based on their time of service and highest three years of annual salaries with the government. Moving to a “defined contribution” set-up would mean that the state retirement fund would match payments that a future state employee makes into his or her retirement account.

Others who have called for that type of approach including Republican Senate President David Williams, R-Burkesville, and former Republican Lt. Gov. Steve Pence.

Democratic Gov. Steve Beshear said on Pure Politics Monday that he’s not convinced that changing the benefit structure in that way would save the state that much money over the long haul.

- Ryan Alessi


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