Special session on pension reform called for June 23

Gov. Steve Beshear (D-Lexington) made it official this afternoon - the Kentucky state legislature will meet for a short special session to consider the pension reform package upon which House and Senate leadership are said to have largely agreed.

"The current condition of the public employee pension systems in Kentucky puts the retirement of Kentucky's teachers, firefighters, police officers, emergency workers and city, county and state employees at risk," said Beshear in a statement released today. "These people have worked hard and earned the right to be financially secure when they retire. The reforms that the House and Senate leadership and I have agreed to will go a long way toward placing the pension systems on a sound financial footing."

"I am pleased that our legislative leaders have taken their work seriously and agreement on key reform issues has been reached," added Beshear.

The full state House and Senate will consider the draft agreement concocted by leadership starting June 23, according to the proclamation signed by Beshear this afternoon.

The proclamation and draft agreement on pension reform can be viewed here (warning: large pdf file).

Beshear's office notes the practice of "double dipping," or collecting a pension while working another state job, will be ended for state employees, pending approval of the draft agreement.

Beshear's statement also estimates that - upon passage - $500 million of "obligations" to the pension will be "saved" by state and local governments, while $56 million in "immediate" pension relief will be provided to local governments and school districs.

The special session proclaimation signed by Beshear states that "it is in the best interest of the Commonwealth" that passage of the draft legislation occur prior to the start of the next fiscal year on July 1, making early estimations that the special session would last around five days likely.