Rep. Steve Riggs Has a Bill Curbing Retirement Benefits
State Representative Steve Riggs, D-Jeffersontown, is obviously not our state representative, but the long-time chair of the House Local Government Committee, has pre-filed legislation that would reduce legislative retirement benefits for current members and put all new legislators into a 401(k) defined contribution plan.
“This bill will not solve the sizeable pension liability Kentucky is now facing, but I think it is a symbolic gesture that is far more reasonable for my legislative colleagues and me and far more sustainable than our current system,” said Rep. Riggs, . “Many I serve with have already expressed support for these changes, and I will work to get others on board as well over the next several months.”
Under Rep. Riggs’ bill, legislators would no longer be able to increase their legislative pensions by taking state or local government jobs after they leave the General Assembly.
Another key change is that benefits for current legislators would be based on their highest five years of salary – as it now is for state employees – rather than the current high three years. This would apply to those retiring after the bill’s enactment.
New legislators, meanwhile, would no longer be able to participate in the Legislators’ Retirement Plan. Instead, they would contribute to a 401(k) defined contribution plan administered by the Kentucky Deferred Compensation Authority. The legislators would be able to determine their contributions, while the state would match that up to 5 percent.
Rep. Riggs’ legislation will be considered during the 2013 Regular Session, which begins in January.