Lexington Herald Leader Editorial: The House Should Agree With The Senate And Pass SB 51. I AGREE!
Pension fix better than none
Gov. Steve Beshear's use of his appointment power to open up Republican-held Senate seats for special elections hasn't gained the Democrats much headway in their efforts to win control of the chamber.
But Beshear's tactic has prompted a move by Senate Republicans to correct a big loophole in the legislative pension plan. Ironically enough, it's a loophole they are largely responsible for creating back in 2005.
In the closing hours of that year's session, the Senate worked a little magic, transforming a House bill into a Christmas tree decorated with a giant legislative pension present.
It allowed lawmakers to count all years of service under any state retirement plan toward the minimum number of years required to receive full benefits from their legislative pensions. For most current legislators, the minimum is 27 years service.
More important, it provided that pension benefits would be calculated based on the high three years of salary — whether it was earned in the legislature or in another government job. Lawmakers who had served 24 years in the General Assembly could take high-paying jobs in the executive branch, the judiciary or local government for as few as three years and have their pension benefits calculated not on all those years they earned a paltry part-time legislative salary but rather on the three years they were earning the big bucks.
Thus, when Beshear offered to make former Sen. Charlie Borders a member of the Public Service Commission (at a salary of $117,000) and former Sen. Majority Leader Dan Kelly a circuit judge ($124,620), neither hesitated in accepting, even though the offers came from a Democratic governor whose goal was to wrest the Senate from the control of their fellow Republicans.
By doing so, Borders and Kelly put themselves in position to more than double their pension benefits.
Wednesday, their former colleagues moved to reverse what were called the "unintended consequences" of the 2005 legislation. On a party-line vote, with Independent Sen. Bob Leeper joining the Republican majority, the Senate approved Senate Bill 51, sponsored by Sen. Jimmie Higdon, R-Lebanon, who upset Beshear's plan by winning the special election for Kelly's former seat.
SB 51 would bar future lawmakers from enjoying the enhanced benefits enacted in 2005. Stress that word "future," because nothing in this bill would apply to current members of the legislature. Any one of them still can land a cushy job somewhere else in government and give themselves the same opportunity Borders, Kelly and several other former lawmakers have taken advantage of since 2005.
Only legislators elected after this bill takes effect — assuming it's passed by the House — would be affected by its provisions.
While the Senate's action on Wednesday looks considerably less noble when you realize they weren't denying themselves any benefit they're eligible for now, closing this loophole is still the right thing to do for the future.
The House should agree with the Senate and pass SB 51.
Gov. Steve Beshear's use of his appointment power to open up Republican-held Senate seats for special elections hasn't gained the Democrats much headway in their efforts to win control of the chamber.
But Beshear's tactic has prompted a move by Senate Republicans to correct a big loophole in the legislative pension plan. Ironically enough, it's a loophole they are largely responsible for creating back in 2005.
In the closing hours of that year's session, the Senate worked a little magic, transforming a House bill into a Christmas tree decorated with a giant legislative pension present.
It allowed lawmakers to count all years of service under any state retirement plan toward the minimum number of years required to receive full benefits from their legislative pensions. For most current legislators, the minimum is 27 years service.
More important, it provided that pension benefits would be calculated based on the high three years of salary — whether it was earned in the legislature or in another government job. Lawmakers who had served 24 years in the General Assembly could take high-paying jobs in the executive branch, the judiciary or local government for as few as three years and have their pension benefits calculated not on all those years they earned a paltry part-time legislative salary but rather on the three years they were earning the big bucks.
Thus, when Beshear offered to make former Sen. Charlie Borders a member of the Public Service Commission (at a salary of $117,000) and former Sen. Majority Leader Dan Kelly a circuit judge ($124,620), neither hesitated in accepting, even though the offers came from a Democratic governor whose goal was to wrest the Senate from the control of their fellow Republicans.
By doing so, Borders and Kelly put themselves in position to more than double their pension benefits.
Wednesday, their former colleagues moved to reverse what were called the "unintended consequences" of the 2005 legislation. On a party-line vote, with Independent Sen. Bob Leeper joining the Republican majority, the Senate approved Senate Bill 51, sponsored by Sen. Jimmie Higdon, R-Lebanon, who upset Beshear's plan by winning the special election for Kelly's former seat.
SB 51 would bar future lawmakers from enjoying the enhanced benefits enacted in 2005. Stress that word "future," because nothing in this bill would apply to current members of the legislature. Any one of them still can land a cushy job somewhere else in government and give themselves the same opportunity Borders, Kelly and several other former lawmakers have taken advantage of since 2005.
Only legislators elected after this bill takes effect — assuming it's passed by the House — would be affected by its provisions.
While the Senate's action on Wednesday looks considerably less noble when you realize they weren't denying themselves any benefit they're eligible for now, closing this loophole is still the right thing to do for the future.
The House should agree with the Senate and pass SB 51.
Labels: News reporting
posted by KYJurisDoctor at 8:38 PM
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