KEEPing THE PROMISE

HIGHLIGHTS

1. Keeping the P ro mise will save Ken t u c ky s pen sio n systems an d

meet the le ga l a nd mo ral o bligat io n s owed to c u r ren t an d ret ired tea chers
an d pu blic se rva nts

2. Requ ire s f ull payment o f ARC an d c reates a n ew fu n din g fo r mu la that

man dates hundreds o f millio n s mo re in to ever y ret iremen t plan , ma king them
h ealthier a nd so lve nt so o ne r

3. For th o se still wo rk ing: no in c rease to t h e fu ll ret iremen t age, and current

d efin ed be nef its re ma in in place u n t il t h e employee reac h es t h e promis ed
level of un reduced pe nsio n b en efit

4. For th o se retired: no clawbac ks o r redu c t io n s to pen sio n c h ec ks, a nd

h ealthcare be nef its are pro te c ted

5 . For fu ture no n-haza rdo us employees an d teac h er s: en ro llmen t i n a

d efin ed co ntributio n re tire me n t plan w ill provide co mparable
retiremen t bene f its

6. For cu rre nt and f uture haz ardo u s employees: w ill co n t in u e in t h e s a me

system th ey are in now

7 . Closes lo o pho le to ensure pay men t o f deat h ben efit s fo r t h e families of

h azardou s employees

8 . Stop s def ine d bene f its pla n fo r all legislato r s, movin g t h em

into th e sa me de f ined co ntribu t io n plan as o t h er st ate employees und er
th e jurisd ictio n o f the KR S Bo ard

9. No eme rge ncy cla use : law w ill n o t go in to effec t u n t il Ju ly 1, 201 8

10. Struct ura l cha nge s sho ul d improve t h e Co mmo nwealt h s rat in g with
credit age ncies, which have dow n graded Ken t u c ky s rat in g, c it in g unfund ed
pen sion burdens