Overhaul in the works for state retirees

The following article was taken from the Herald-Leader archives:

Overhaul in the works for state retirees; LEGISLATORS SAY THEY HAVE A PLAN FOR HIGH COSTS OF PENSION SYSTEMS

Jack Brammer, Herald-Leader | March 3, 2007

In the waning days of this year’s legislative session, Senate Republican and Democratic leaders revealed yesterday they are working on a plan to overhaul the state’s financially strapped retirement systems.

Senate President David Williams, R-Burkesville, said the move could save the state more than $200 million over the next year and put in place a mechanism to address the skyrocketing pension costs in future state budgets.

Williams did not offer specifics on the plan but said it would not affect the benefits of current retirees and employees. “Obviously future hires will have to be affected,” he said.

Bill Hanes, executive director of the Kentucky Retirement Systems, said he could not comment on details of any plan being considered by legislators, but did say it would be “irresponsible” to make major changes in pension funds “in such a short time in this short session.” Monday will mark the 23rd day of the 30-day session.

In a floor speech about solving the more than $12 billion of unfunded liability in the state employees’ retirement system and the $7 billion of debt in the county employees’ retirement system, Williams said,  “Until that resolution is made, I see very little else happening in this session of the General Assembly as far as expending dollars.”

He later said he was not threatening the Democratic-controlled House but was instead trying to stress the importance of addressing the problem.

Williams said the “resolution” enjoyed support from Republicans and Democrats in the GOP-controlled Senate. He noted that it dealt with pensions and that lawmakers will wait to address the health insurance part of the retirement system problem after it hears recommendations from a special task force.

Williams and Senate Majority Leader Dan Kelly, R-Springfield, were joined by Senate Minority Leader Ed Worley, D-Richmond, in calling on the House to commit to the plan.

House Speaker Jody Richards, D-Bowling Green, said the House is “very concerned” about the retirement systems but wants to make sure that any change is actuarially sound and does not affect current retirees.

He said House Democratic leaders will meet again Monday to discuss the issue.

There are about 300,000 people in the state retirement system.

Charles Wells, executive director of the Kentucky Association of State Employees, said, “We would hope that very soon leaders would invite state employees and front-line employee groups like ours to participate in any talks about changing the retirement systems.

“We have strong concerns about reducing benefits of future employees. That could hurt the state’s ability to recruit and obtain good employees, but we have to see the details of any plan before we could judge it.”

Gov. Ernie Fletcher has recommended that the legislature provide $25 million to the state employees’ retirement system to help reduce the unfunded liabilities of its health insurance programs.

The House budget committee approved a bill with Fletcher’s provisions. Senate Republican leaders would not say how much money they might put into the retirement programs, but Kelly said changing the structure of the retirement system was more important.

Kelly described the $25 million proposed by Fletcher for the state’s retirement system as “putting two quarts of boiling water in San Francisco Bay to heat the water there. It actually would extend the deadline when our pension system would go bankrupt (by) one month.”

In a statement yesterday, Fletcher said, “We have openly expressed our concerns with the state retirement systems and our obligations to our retirees. We look forward to the forthcoming dialogue with the Senate and the House.

“We are open to any suggestions they have, realizing that the $50 million good faith effort is just the beginning of solving the problems.”

Reach Jack Brammer at (859) 231-1302 or jbrammer@herald-leader.com.

Load-Date: March 3, 2007

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This article illustrates that the Kentucky Senate has been leading on the issue of pension reform for more than 10 years. It’s time for us to take action to ensure these systems are funded for the future.

SENATOR JIMMY HIGDON ELECTED MAJORITY CAUCUS DESIGNEE TO REPLACE SENATOR DAVID GIVENS AS SENATE PRESIDENT PRO TEMPORE

FRANKFORT, Ky. (Friday, September 8, 2017) – The Kentucky Senate Majority Caucus announced Friday that Senator Jimmy Higdon (R-Lebanon) has been chosen by his peers as the designee to replace former Senate President Pro Tempore David Givens in the Kentucky Senate. Senator David Givens (R-Greensburg) who resigned from his seat in Senate leadership in June citing personal reasons.

“I was sad to see Senator Givens step down, but I am honored to serve in this new capacity in Senate leadership, and I appreciate all of my colleagues for granting me this special opportunity,” Senator Higdon said Friday. “I certainly have some big shoes to fill, but Senator Givens has been supportive, and I know he will continue to be a great asset to our caucus and a great resource to me moving forward.”

Prior to Friday’s election, Senator Higdon held the leadership position of Senate Majority Caucus Whip. A special election will be held in the near future to elect a designee to fill the vacant position. Senator Higdon is expected to be officially elected the next time the Senate convenes.

“I am happy for my good friend, Senator Jimmy Higdon, and look forward to continuing to serve with him in Senate leadership,” Senate President Robert Stivers (R-Manchester) said. “Senator Higdon is experienced, knowledgeable, and possesses the necessary character skills needed to effectively serve as President Pro Tem, and I am confident he will do an exemplary job.”

Senator Higdon was elected to the Kentucky Senate in 2009 during a special election after having previously served in the Kentucky House of Representatives since 2003. Senator Higdon was elected Majority Caucus Whip in 2014 and reelected in 2016. He represents the 14^th Senate District, which encompasses Casey, Marion, Nelson, and Spencer counties, as well as a portion of Jefferson County.

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SENATOR JOE BOWEN COMMENTS ON REP. JAMES KAY’S TRANSPARENCY BILL

For Immediate Release
Contact: John Cox
859-492-2963
John.Cox@LRC.KY.GOV

FRANKFORT, Ky. (September 15, 2016) – The following is a statement from Senator Joe Bowen (R-Owensboro), regarding pre-filed legislation announced yesterday from Representative James Kay (D-Versailles):

“In the 2016 General Assembly session, the Senate Majority strived to shore up the state pensions for teachers and state workers by both committing hundreds of millions of additional funds in the budgetary process, and by making the pension systems more transparent and accountable.  The full House of Representatives failed to vote on Senate Bill (SB) 2, the Senate pension transparency bill, as both standalone legislation and as part of a ‘super transparency’ bill.

On March 17^th of the 2016 General Assembly session, the House State Government committee reported SB 2 favorably out of committee, with 20 ‘yea’ votes, 1 ‘nay’ vote, and 3 ‘pass’ votes.  Representative James Kay, a member of the committee, offered a “pass” vote.

Today, Representative Kay has essentially cut, pasted, and pre-filed a large portion of the contents of Senate Bill 2 from last session.  This is the same SB 2 that could not get enough support from him or House Leadership to be considered on the House floor, despite being reported favorably by the House State Government Committee.

Perhaps ‘better late than never.’  But does Rep. Kay and the House Leadership want to make substantive pension changes, or do they just want an election year issue?  There was no absence of opportunity to address these issues in the 2016 General Assembly session, but I assume these issues were not considered important to them at the time.  I am glad they now believe pension transparency and accountability are important issues.”

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U.S. SENATOR LAMAR ALEXANDER TO GIVE PRESENTATION AT SEPT. 12 IJC ON EDUCATION MEETING

Commonwealth of Kentucky
Senate Majority Republican Leadership

For Immediate Release
Contact: John Cox
859-492-2963
John.Cox@LRC.KY.GOV

FRANKFORT, Ky. (September 7, 2016) – U.S. Senator Lamar Alexander (R-Tennessee), chairman of the U.S. Senate’s education committee and primary author of the Every Student Succeeds Act (ESSA), will join the Interim Joint Committee on Education in Frankfort on Monday, September 12, to discuss the new education law and outline the opportunities and implications for Kentucky’s General Assembly to realign education policy in the state. The meeting is slated to begin at 10 a.m. EDT and Sen. Alexander is expected to give his presentation at approximately 11 a.m. local time.

“Senator Alexander has been a leader on education reform as Governor of Tennessee, as U.S. Education Secretary, and as a United States Senator,” said Senator Mike Wilson (R-Bowling Green), who will chair the September 12 Education meeting. “Through Senator Alexander’s intellect and persuasive nature, he attracted support from the National Education Association in his efforts to reduce Federal overreach in our schools. We share a similar view that individual states should be the ones determining the best academic standards, state assessments, and accountability as well as teaching methods for their students.”

Alexander’s testimony will cover the provisions of a new federal law, the Every Student Succeeds Act, which replaces the controversial No Child Left Behind Act.

“We are excited to welcome this high-profile guest to Frankfort to lead a discussion that is long overdue,” Senate President Robert Stivers (R-Manchester) said. “I admire Senator Alexander for his commitment to strengthening education across the United States, and I appreciate him for taking the time to address this committee.”

In 2016, the nation’s governors created the James Madison Award to recognize members of Congress who support federalism and the 10th Amendment of the U.S. Constitution guaranteeing states’ rights. The governors named Sen. Lamar Alexander as the first-ever recipient of the award for his work to fix No Child Left Behind. The new education law Alexander worked to pass was signed by the president in December 2015. The Wall Street Journal called it “the largest devolution of federal power to the states in a quarter century.”

In 2013, the National Conference of State Legislatures gave Sen. Alexander and three other senators its “Restoring the Balance” Award for protecting states’ rights, the first time in 10 years the organization gave this award to U.S. senators.

Alexander, a seventh-generation Tennessean born and raised in Maryville, was twice elected governor of Tennessee. He has always believed that in most cases the best decisions are made by those closest to the people.

Today, Alexander chairs the Senate Health, Education, Labor and Pensions Committee, where he is working on legislation to bring safe drugs and medical devices to doctors’ offices and patients’ medicine cabinets more quickly.

Alexander is also chairman of the Senate Energy and Water Development Appropriations Subcommittee, where he works to boost funding for basic energy research and invest in our inland waterways and harbors.

Alexander was first elected to the Senate in 2002 and has been reelected twice. His Republican colleagues elected him three times to be chairman of the Senate Republican Conference.

He has previously served as president of the University of Tennessee and as U.S. Secretary of Education under George H.W. Bush.

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SEN.’S ADAMS, ALVARADO ISSUE STATEMENT ON KY HEALTH WAIVER

For Immediate Release
August 24, 2016
Contact: John Cox
859-492-2963
John.Cox@LRC.KY.GOV

SENATORS ADAMS, ALVARADO ISSUE STATEMENT ON KENTUCKY HEALTH WAIVER SUBMISSION

FRANKFORT, Ky. – The following is a joint statement on behalf of Senate Health and Welfare Committee chair Julie Raque Adams (R-Louisville) and vice chair Dr. Ralph Alvarado (R-Winchester):

“The current Medicaid model in Kentucky is broken. If we continue down this unsustainable path, many Kentuckians will lose their healthcare coverage and we will have less state dollars to fund education and fix pension systems. The waiver proposed by Governor Bevin is a common-sense approach to keep Kentuckians covered and become personally engaged in their own health. This waiver promotes accountability and provides a pathway to private insurance.”

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For more information on the Section 1115 demonstration waiver known as Kentucky HEALTH (Helping to Engage and Achieve Long Term Health) from Governor Matt Bevin’s Office, please visit: http://chfs.ky.gov/dms/kh.