Posted on Tue, Jun. 10, 2008

Lawmakers signal progress on pension

SPECIAL SESSION LIKELY AS LEADERS REACH AGREEMENT ON PLAN

By Ryan Alessi And Jack Brammer

RALESSI@HERALD-LEADER.COM

FRANKFORT --

Legislative leaders have reached a tentative agreement on a plan to overhaul the state retirement systems and appear ready for a special law-making session on the issue to begin June 23.

After several hours of closed-door negotiations Monday between House and Senate leaders, House Speaker Jody Richards and Senate President David Williams said leaders plan to contact lawmakers overnight to assess the plan and expect to announce its details Tuesday.

Neither leader would release specifics, but Williams, R-Burkesville, said he expects it will include a schedule to address the $26.6 billion unfunded liability in the retirement systems.

Richards said the plan does more than what Gov. Steve Beshear outlined, but Williams said it "falls far short" of past Senate proposals.

"But it may very well be this recommendation is as much as we can get done now, and we don't want to lose the opportunity to do that," the Senate leader said.

Richards, D-Bowling Green, said he was "cautiously optimistic" that a plan will be finalized Tuesday.

Once an agreement has been reached, Richards said, leaders will contact Beshear, who is in Japan for an economic development trip, to see if he wants to call a special session. Only the governor can call a special session and set its agenda.

Beshear has said he would call a special session to begin June 23 if the two chambers can reach an agreement.

The governor also has set up a panel to come up with recommendations for the 2009 General Assembly on more controversial parts of the issue.

Williams said he thinks the two days of House-Senate negotiations have "come up with a recommendation that should be acceptable to everyone in the legislature."

Asked if it will be acceptable to the Kentucky Education Association, which has expressed concerns about a special session, Williams said, "Any time you have a working group or a compromise there will be some people who are displeased."

One of the biggest sticking points focused on whether future employees should pay into a defined contribution retirement system, similar to a 401(k).

But Richards has said the House would not accept that.

Richards also said legislative leaders are not talking about any other issue besides pension reform for a likely special session.

Also, the Kentucky Association of Counties announced Monday that its executive committee voted in support of a special session to address the retirement system.

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