FRANKFORT, Ky. (AP) - Local government pension funds would break away from the Kentucky Retirement Systems under a bill headed to the Kentucky Senate after winning committee approval.
Republican Sen. Joe Bowen of Owensboro, the bill’s lead sponsor, says the separation would allow state leaders to focus on chronic funding woes for state pension funds.
The bill approved Thursday by the Senate State and Local Government Committee would separate the County Employees Retirement System from KRS.
The measure would create a nine-member board to oversee the new pension agency for about 230,000 local government workers and retirees. Bowen says his bill allows for an orderly transition period in which the new pension agency could contract with KRS for various services.
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The legislation is Senate Bill 226.
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