Support eroding in House for 401(k)-style public pensions

  • Source: The Messenger
  • Published: 02/14/2018 01:55 AM

Sentiment appears to be waning in the Kentucky House to switch public pension systems to 401(k)-style accounts as Gov. Matt Bevin proposed last October. House Education Chairman John "Bam" Carney, R-Campbellsville, said Monday he is "leaning against" moving public employees from a defined-benefits system to a defined-contribution system. A defined pension plan is one in which an employer offers a specified pension payment on retirement predetermined by a formula based on the employee's earnings history, tenure and age instead of depending directly on a person's investment returns. A defined contribution plan depends on individual investments like (401)k programs.



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