Beshear wants agreement before calling any special session

FRANKFORT — Gov. Steve Beshear is leaving open the possibility of calling state lawmakers back to Frankfort soon to overhaul the state’s retirement programs.

But Beshear said Friday that “the only way” he would call a special session is if legislative leaders “get their act together and sit down with us and we come up with an agreed-upon piece of legislation that we all would stand up ahead of time and say we will support this and we will pass this.”

He added, “I’m not going to waste the taxpayers’ money calling a special session just so we can come up and argue about it again.”

If an agreement can be reached in advance, said Beshear, “I’m willing to call them back in for a minimal amount of time.  I believe that is five days to pass a bill.”

Only the governor can call a special session and set its agenda.  A special session would cost taxpayers about $60,000 a day.

Kentucky’s 2008 General Assembly ended Tuesday without changing the state’s pension systems, which face a deficit of more than $26 billion.

Leaders in the state House and Senate reached a tentative agreement on the issue Tuesday.  The Senate approved the agreement but the House did not vote on it.  House leaders said they did not have enough time to review the agreement.

Beshear said he plans to talk to legislative leaders within the next few days about the pension issue.

Senate President David Williams, R-Burkesville, replied, "We already reached an agreement.  Everybody knows we reached an agreement."

On Thursday, the Kentucky Chamber of Commerce, Kentucky League of Cities and the Prichard Committee for Academic Excellence urged Beshear to call a special session within 30 days on the issue.

The groups said state and local governments are facing a crisis in escalating pension costs.  They also said the pension issue should be the only item on a call for a special session.

Senate President Williams also has called for a special session.  House Speaker Jody Richards, D-Bowling Green, said one might be needed to consider changes in the retirement systems and other issues like ethics reforms and road projects.

--Jack Brammer

Comments

[David Adams]

Way before they consider raising taxes, the special session should create a 24 hour waiting period before a floor votes on any appropriations or revenue bill. And then they should create a website with all government expenditures on it so taxpayers can see where their money is going.

[nothing but the truth]

If the lgislators aren't willing to set up a defined contribution plan, they should be required to do away with the "top three years" defined benefit plan. This system, which we currently have, is quite literally stealing from the tax payers.

Under the current system, a state employee could work for twenty years making on average $25,000, and contribute to the system at that rate. Then, get a promotion to a job paying $60,000 per year work for three years. Upon retirement, the worker would be paid as though he earned $60,000 for the entire 23 years, even though he/she did not contribute at that rate for that period of time. Legislators have included themselves in this scam.

It's unconscionable, and no fiscally responsible person would support it. The change should be retroactive to anyone who has not yet retired.

For the the money we have to pay to those who have already retired, we should sue the legislators and Governor who enacted this highway robbery. There is no more clear abuse of taxpayer money that I am aware of.

As for the H-L's editorial board's idea of raising taxes, that is akin to endorsing a bank robber asking the bank customers to pay him more money when the money he stole runs out. As well, taxpayers have already been hit with higher costs. The amount that county governments have had to contribute to the retirement system has almost doubled in five years. That comes directly out of county tax payer's coffers.

When anyone talks about Republicans being corrupt, just point out the Kentucky retirement system that the Democrats foisted on the tax payers back. It is nothing short of stunning in its corrupt abuse of power.

[Just Say NO to increased taxes]

TRUTH, you are so right. The chickens are coming home to roost from the years of the people in Frankfort padding each others pockets. Now they want the over-stretched taxpayers to pick up the tab. We SHOULD NOT be forced to bail them out!

[clay]

State employees are not the enemy. Look at the waY they are treated in terms of salary. Assistant Managers at McDonalds make as much as some state jobs requiring college degrees. Many times overtime is extorted from them and not paid. CORRECTION IS FAMOUS FOR STEALING FROM EMPLOYEES

THE REAL PROBLEM IS THE GENERAL ASSEMBLY FUNDING HOME PROJECTS FOR THEIR POLICTICAL BENEFIT AND NOT FUNDING THE RETIREMENT.

THEN THE SAME DUMB VOTERS VOTE THEM BACK IN HOPING TO GAIN FROM THEM IN THE FUTURE.

YOU GET WHAT YOU VOTE FOR.

[Taxpayer]

Clay,

I agree with you that the problem is with the general assembly and you get what you vote for, but I dont' agree with you about the state workers. When you are hired as a state worker in Frankfort, they tell you what you are going to be paid, its not like they surprise you with it once you start the job. If you don't like what you're getting paid, leave, go find another job. That's the beauty of living in America, freedom of choice. No one is making you stay there. Most don't want to leave because they got it too good and don't have to work hard.

As far as state employees working overtime and not getting paid for it. I don't believe that for a minute. Their either gaining comp time or getting paid overtime. The Department of Labor's Office of Workplace Standards enforces the regulation that requires overtime pay on public employers as well as private. They done everyday. If its happening to you or someone you know, file a complaint with DOL. There is no way a state worker, especially a "merit" state worker, is working anytime beyond their 7.5 and not getting paid for it.

[Jim Anderson Stivers]

from a previous post:

"""As for the H-L's editorial board's idea of raising taxes, that is akin to endorsing a bank robber asking the bank customers to pay him more money when the money he stole runs out.***

How can the explanation, of the raiding of retirement money- be more graphic- than this comment by NOTHING BUT THE TRUTH.

I have said to my Senator Julian Carroll.

"There needs to be some KRS provision that identifies the the need and the commitment to repay in a certain amount of time when borrowing funds from retirement programs."

He agreed it was worth considering, but so far I have seen nothing of any activity to draft such legislation.

That won't happen, but it would have the possibility of establishing more oversight and showing NEED, rather than want.

[Jim Anderson Stivers]

LAST THREE YEARS.

The people that benefit most, from the three year rule, are the state employees who have political connections. They are given non merit jobs -just before - they go into the retirement program.

It is not the JOE OR JANE THAT BENEFITS FROM THE THREE YEAR RULE. It is those well connected. I saw this many times while working in Government.

Why not eight years . . . Two terms.???

[nothing but the truth]

Every state worker benefits from the three year rule. Take for example a worker hired at $25,000 a year with an average of 3% in pay raises for 20 years.

That worker will earn around $42,000 in year 18, around $43,500 in year 19 and about $45,000 in the last year of employment.

That employee will be paid retirement benefits based upon an average of $43,000 and will be paid as though they had earned $43,000 a year for 20 years. Even though they only earned that amount or more for two years.

State employee retirement should be no different than private sector retirement. Most companies have done away with defnied benefit plans becasue they are economically unsustainable.

Rather, state employees should be given a 401k type plan. When they get to retirement they will have a large pot of money that has accumulated over the course of their employment with interest.

If the employee wants a monthly check, like the current plan, they can use their pot of money to buy an annuity. Other wise, they can live off the interest, take some principal, leave it for their heirs. Whatever they choose to do.

The current plan leaves retirees captive to the legislature and Governor. As well, it takes away the ability for people to become wealthy or to leave wealth to their children and grandchildren.

Defined benefit plans are the holy grail of socialist utopians who think that working in a nondescript government job for 30 years, then retiring to a three bedroom two bath ranch with a couple of holidays at the beach is the ultimate life to live.

France is their model. They just have to figure out how to keep the eldest from dying of heat prostration in the summer because they cannot afford food and air conditioning on their monthly check.

[State employees]

The top three years ends at the end of this year. After that, it goes back to the top 5 years.

[skyhawk]

nothing but the truth, your last post would make sense if state workers received pay along the scale of the public workers, but they don't. The biggest thing that attracts people to state employment is the retirement benefits. You will work for 27 years at a much lower wage hence lower savings accounts but it will be made up at retirement. Private sector, much higher salaries thus higher savings and the ability to invest in 401k type plans. It's just a matter of when you want the money, with state workers it's at retirement.

[Pappy]

kiss my a$$ all you losers, I'm enjoying these high gas prices and hope, just hope it is breaking each and everyon of you jealous people, what is the matter, the state would not hire you because your a un-qualified burger flipper, hee,haa