Kentucky Retirement Systems stakeholders await the outcome of a lawsuit resulting from the passage of Senate Bill 151, a bill that permanently reduces pension benefits for future retirees notwithstanding long-established contract rights.
Nobody who voted to pass SB 151 has produced a legal analysis justifying the pension reductions. Perhaps they don’t want the public to know that the Kentucky Supreme Court addressed this issue in a 1995 ruling.
The court concluded that an inviolable contract exists, and that the contract may only be temporarily impaired and only if that impairment is “reasonable and necessary to serve a legitimate and important public purpose.”
KRS actuaries concluded that the pension cuts produce no substantial savings. So, if the new law doesn’t save money, what exactly is the public purpose being served?
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SB 151 was an insult to hard-working public servants and an assault on our contract rights.
We will remember in November.