Kentucky officials plan to release an outline of plans to restructure the State’s severely underfunded pension plans. The Kentucky pension system is one of the most poorly funded plans in the country. The pension plan covering the State’s non-hazardous employees was 14.80% funded and the teachers’ plan was 35.22% funded.
The outline of the overhaul includes new employees being placed in a defined contribution plan (401(k) style). No information was made available about what changes the overhaul would include in an attempt to reduce the net pension liability covering existing employees and retirees.