FRANKFORT, Ky. (LEX 18) — Gov. Matt Bevin signed an executive order to prohibit "pension spiking" by executive or judicial branch positions.
Members of the Kentucky General Assembly who began participation in the Legislators’ Retirement Plan prior to Jan. 1, 2014, are entitled to a defined benefit pension. The final pension payout for this plan is calculated using a formula based on the individual’s years of service in the legislature, multiplied by the average salary for the three highest years of salary -- known as the “high three” -- and then multiplied by a percentage called a benefit factor.
In 2005, the General Assembly passed HB 299, which allowed part-time citizen legislators to spike their legislative pension using their highest three years of salary, even if that salary was earned in another government position. A news release from the governor's office explains that under the previous system, former legislators making a five-figure salary could receive a larger pension without contributing to the system.
Bevin also took the opportunity to criticize State House Minority Leader Rocky Adkins, who was recently named Gov.-elect Beshear's senior adviser. He called on Adkins to retire from the General Assembly prior to assuming his new position so that the higher salary would not be included in his final pension.