Tagged: kentucky state pensions

The House has narrowly passed two bills dealing with the state's underfunded pension system, but not without controversy.

The House passed an amended  version of Senate Bill 2, which keeps the pension systems as a defined benefit and creates a new oversight panel for Kentucky's many pension plans. It passed on party lines 55-45, with Democrats favoring.

The House budget committee has passed a bill that would help shore up Kentucky's underfunded pension system by relying on gambling revenue.

House Bill 416 would take revenues from expanding Kentucky lottery sales and online games, as well as from Instant Racing—if the state Supreme Court upholds the legality of the game—and move the money to the struggling pension program for state employees.

The state pension system would not transition to a hybrid 401K-style plan in an amended version of the pension reform bill.

The amended bill also only allows plans to set up a new 11-person committee to provide direct oversight over the pension systems.

And cost of living adjustments are no longer banned under the bill, but can only be allowed if there is a surplus in the retirement systems or if lawmakers prepay for the expense.

Kentucky House leaders are considering legalizing Instant Racing across Kentucky to help plug the funding gap in the state's pensions.

Instant Racing is a slots-like game currently played at two Kentucky tracks, Ellis Park and Kentucky Downs. The legality of the game is also currently being litigated at the Kentucky Supreme Court.

But if the General Assembly passes a bill authorizing it, the court case would be moot.