Pension Reforms set to Save Cities Thousands
The General Assembly came away from the 2013 regular session with a host of accomplishments, but the biggest for many lawmakers was Senate Bill 2, known as the pension reform bill. SB 2 changed the current public employee pension system from a defined-benefit plan to a hybrid plan, in which the employee and the employer both contribute funds. The bill put a stop to the state’s ballooning $33-billion pension shortfall. But while SB 2 saves the state’s pension fund from getting any bigger, it also saves cities in Kentucky from having to pay their employees the same benefits they had in the past.