Vote Smart's Synopsis:

Vote to pass a bill that revises several state retirement systems. Increases the number of years that public employees hired after July 1, 2008 must work to receive full retirement benefits, increases the percentage of their income they must contribute to the retirement system, and makes additional changes.

Highlights:

- Makes the following changes for employees hired on or after July 1, 2008:

- Increases the "normal" retirement age to 65 - Increases the "early" retirement age to 55 with at least 15 years of service or 60 with 10 years of service - Increases the months of service credit required for participation in the state medical insurance plan to 180-240, depending on the individual's age - Increases the required contribution to the retirement system to 10.86 percent of income - Limits interest paid on retirement contribution accounts to 2.5 percent

- Limits annual cost of living adjustments for individuals who retire before July, 2018 to 1.5 percent. Allows individuals who retire after July 1, 2018 to receive a fixed annual increase. - Creates the Local Government Employees Retirement System. - Creates the Kentucky Public Pension Financing Advisory Commission to review and recommend investment policies of state retirement systems. - Substitute offered by Senate Committee on State and Local Government.

Full Bill Text