FRANKFORT, Ky. (WTVQ) – A pension plan backed by the Governor is moving closer to becoming law after day two of a special session on pension reform.
A house committee passed the GOP bill while turning down two alternatives proposed by Democrats.
The only bill to make it through Saturday’s house state government committee, house bill one, the GOP plan, supported by Governor Matt Bevin.
It would give regional universities and quasi-governmental agencies like health departments options about pensions.
“It enables the employers to make the decision on what they want to do. If they want to stay in the system they can, that’s totally up to them. If they want to leave the system then we gave them four options. Two of them are lump sum payments and two of them are installment payments. Two of them allows them to keep their employees in the system and two of them allows them to take their employees out of the system,” Representative Jason Nemes said.
Some Democrats argue that the plan violates the inviolable contract guaranteeing state workers the pension benefits they were promised when hired.
The Democrats proposals, house bill two and three didn’t pass committee.
Under those bills, everyone would stay in the system with permanent pension contribution rates.
Democratic minority leader, Rocky Adkins feels strongly against house bill one and thinks committee members made the wrong decision.
“That’s a better solution. That has been proven, not by me, not by Joe Graviss, not by anyone else but by an actuarial analysis that has zero negative comment, zero negative comment on house bill two and the validity, the stability, and the certainty that it brings to the commonwealth of Kentucky and those people who are part of that pension system,” Adkins said.
Monday, the GOP plan goes to all the house members for a vote.
Then, it would need Senate approval and the governor’s signature before becoming law