Two Birds, One Stone

From the Herald-Leader:

“Overhaul in the works for state retirees
LEGISLATORS SAY THEY HAVE A PLAN FOR HIGH COSTS OF PENSION SYSTEMS”

This bill has two purposes:

First, reduce benefits to new employees. In reality the only thing they can do with the legislation is just deny retirement and retiree health benefits to new employees. All this does is lower compensation for new state hires. You either have to raise base salary or you get a lower quality employee, there is no magic to this.

Second the Republicans know that Jody Richards and the Executive Director Hanes of the Kentucky Retirement Systems have been married at the hip for 20 years. Hanes doesn't want any changes to the system. Hanes wife works for Democratic Caucus. And the Democratic Caucus raises money from money managers contracted by KRS which the Ethics Commission says they do not have to disclose).

This forces Jody to either make changes that will anger state workers and retiree's or look like a road block to solving the problem.

Basically we are probably talking changing the system from a defined benefit plan to a defined contribution plan.

Great legislation, screw the employees and a candidate for Governor at the same time.

You have to love David Williams, never let doing the right thing stand in the way of politics.