New ALEC report mirrors Bluegrass Institute's "Future Shock"

This week, the American Legislative Exchange Council released a brand new report on suggestions for states attempting to fight unfunded public pension liabilities.

It's no coincidence that the report, entitled "Keeping the Promise: Solutions for Government Pension Reform," suggests many of the same solutions found in the Bluegrass Institute report on Kentucky's $30 billion public pension liability, which you can review here.

Both reports suggest certain changes that can be made without overhauling a state's entire pension system. Such inside-the-box changes include tweaking cost-of-living adjustments, ending the practice of "spiking," and raising the retirement age.

But, as ALEC's report echoes, true reform comes from thinking outside the box.

More fundamental reforms include implementing market-inspired retirement plans by moving away from defined-benefit plans and moving toward defined-contribution plans in the spirit of the 401(k) found in the private sector.

Of course, there's still many Kentucky-specific reforms that can be made, not the least of which being the repeal of 2005's HB 299 which allows legislators a "modern day gold rush" in the form of double, and even triple-dipping, and establishes legislative pensions based not on legislative salaries, but on any salary earned in a government position.

You can read the full ALEC report here.