PUBLIC PENSION REFORM: CAN KENTUCKY BE CONSIDERED A MODEL?

Public pensions can be poorly funded, and Kentucky's are among the worst funded in the nation. There are many reasons for this, but the overriding cause is the lack of funding discipline. Pension benefits are legally protected and highly valued, while pension funding is subject to competing social and budgetary goals and constraints. Kentucky has taken steps to shore up its pensions, including reforms of benefits and funding. But pension reform is intensely political, the job is not done, and it remains to be seen whether Kentucky pensions can withstand a prolonged recession. Reformers would therefore be well advised to follow developments in Kentucky. [ABSTRACT FROM AUTHOR]