Mon August 20, 2012
Beshear Says Hybrid Solution for Struggling Pensions Could Work
Governor Steve Beshear says he's interested in a so-called hybrid approach to pension reform.
Lawmakers are discussing how to fix the flailing public pension plans for state and county employees. They'll make recommendations at the end of the year.
Beshear says he would support a plan, that allows current to employees keep their pensions, but require new employees to pay into a 401k-type plan.
But the governor's support isn't without qualifications.
“Any kind of movement toward a hybrid plan to me would have to also have some sort of control situation, where we’ve got professionals that are still going to be able to manage that money in some way," he says.
Lawmakers have not yet unified behind a single solution, though hybrid plans and increased state funding into the existing pension program are among the options being considered.
Beshear says he won't support any solutions that raise the burden on taxpayers.
“You know just raising taxes to get your pension in a better situation; I don’t think taxpayers would be very excited about. And cutting programs, we’ve cut $1.3 billion out of our programs already," he says.