A long-awaited plan to overhaul one of the country's worst-funded public pension systems was introduced on Tuesday in the Kentucky Senate, setting the stage for debate on one of the defining issues of this year's legislative session, the Associated Press reported. The new measure would not force any current or future state employees or teachers to move into a defined contribution 401(k)-style retirement plan. That was the cornerstone of the plan Kentucky Gov. Matt Bevin (R) wanted lawmakers to consider in a special session that never happened last year. Last year's proposal drew fierce opposition from hundreds of thousands of state workers and public school teachers. The backlash came in advance of an election year, the first since voters gave Republicans full control of the Kentucky legislature in 2016. Bowen said that the new plan balances the need to stabilize the pension systems while honoring commitments to public employees. The new bill also would not require all employees and teachers to pay an extra 3 percent of their salary for a retiree health benefit. And the new version does not create an incentive for employees and teachers to retire at their earliest possible eligibility by ending the ability to accrue more service credit in their current defined benefit plan.
