The Blue Ribbon Commission on Public Employees Retirement Systems will meet on Monday for the first time.
The commission, appointed by Gov. Ernie Fletcher, will study methods of addressing the current unfunded liability accrued by the Kentucky Teachers’ Retirement System and the Kentucky Retirement Systems, which includes state employees, state police and county employees. The commission will develop a plan to fulfill the retirement obligations to current retirees and report the findings to Fletcher no later than Dec. 1.
"When our state employees, county employees, state police and teachers began their careers in public service, they were promised a level of benefits upon which they have based their retirement plans and those promises will be kept," Fletcher said in a statement. "The committee’s charge is to focus on meeting those commitments and responsibly planning for the future."
Finance and Administration Secretary John Farris will chair the 24-person committee, which also includes Personnel Secretary Brian Crall, Health and Family Services Secretary Mark Birdwhistell, State Budget Director Brad Cowgill, Kentucky State Police Commissioner Jack Adams, Sen. Charlie Borders, R-Russell, and Rep. Harry Moberly, D-Richmond.
The commission also includes representatives from the retirement systems, state employees, the Kentucky Association of Counties, the Kentucky League of Cities, and eight private citizens with experience in investments.
Jill Midkiff, spokeswoman for the Finance and Administration Cabinet, said cabinet staff will assist the commission by conducting research. The meeting on Monday will focus mostly on organizational items, such as forming subcommittees and setting the schedule for regular meetings, Midkiff said.
The meeting is open to the public, and will also be broadcast on the Cable 10 closed-circuit network within the Capitol and available in streaming video on the KET Web site.
Rep. Carl Rollins, D-Midway, said he will be unable to attend the meeting but plans to participate throughout the process. He said it was important to include Borders and Moberly who chair the appropriations and revenue committees in the Senate and House respectively.
"Both of them will provide valuable input," Rollins said. "I think they have assembled a good team."
Sen. Julian Carroll, D-Frankfort, said he will also be unable to attend the meeting, but plans to provide input and advice as well. He expects the committee to break down into smaller working groups in order to tackle specific issues like investments, benefits and appropriations.
"A group of 24 is a little too large and it would be difficult to deal with comprehensive questions," Carroll said.
Rep. Derrick Graham, D-Frankfort, said he plans to attend the meeting. However, lawmakers will have to make difficult choices during the next few months, he said, in order to remedy the situation. State employees should not be required to make sacrifices, Graham said, because lawmakers have created the problem.
"Whatever direction we go in, we have to do what’s fair and right and equitable for state employees," he said. "It’s no fault of theirs we are in this predicament."
Lee Jackson, president of the Kentucky Association of State Employees, will also be a voting member of the commission. Executive Director Charles Wells said it’s important for the group to do a comparative analysis of proposals in other states, he said.
"We want to see what other states have done that have actually succeeded," Wells said.
Bill Hanes, executive director of the Kentucky Retirement Systems, was also named to the commission. He said he has discussed the unfunded liability with Crall and Fletcher’s Chief of Staff Stan Cave and is also optimistic a solution can be reached.
"The governor has a true interest in dealing with the problems we have," Hanes said.
Hanes has announced he will retire in June and said any solution will be implemented over the long term with legislative approval.
"There is no quick fix," he said.