I've talked a lot about the $600 billion we lose each year by not reforming Social Security. While the $260 million Kentucky will lose this year by not reforming its public pension plans seems like a pittance in comparison, we have much more to lose by inaction in Frankfort. By 2022, the state pension fund will run dry and we will have to start paying out $2 Billion each year to retirees.
It would take one heck of a tax increase to fill that hole.
Raising full-retirement eligibility from 27 to 32 years is also a good thing and not too much to ask from folks who are far better paid than their union reps want you to know.
Can't imagine the unions letting the House go along with the hybrid retirement plan for new retirees, but they must go along with bonding the $538 million shortfall.
We have to move fast on this because the real problem is in the public employee health plans. And reform weenies beware: we are just getting started on this.