A state commission is researching ways to “fix” Kentucky’s unfunded state employee pension mandate. Here’s the bitter medicine that state employees must take in order to help get this problem under control:

Two of the more controversial proposals include reducing the cost-of-living adjustment and increasing the age or years of service before retirees qualify for full benefits.

Even more “controversial” was Sen. David Williams’ plan to switch the defined benefit pension program over to a defined contribution program that would work like a 401 k:

The proposal has not emerged as a recommendation for the commission’s final report, Crall said.

Commission members who represent government and employees say the concept would not solve the real problem with the pension systems — skyrocketing health-care costs.

“I hope most members now understand it’s a dumb idea,” said Bill Hanes, retired executive director of Kentucky Retirement Systems and a commission member.

 Guess Hanes doesn’t realize that most private companies offer their employees 401 k retirement plans. People can actually accumulate savings by investing in the stock market. Amazing!

Only time will tell if the Kentucky legislature will actually take any action to tweak the KY pension system. State employees and teachers make up a large part of the voting population and most politicians would rather not rock their boat. I’m not holding my breath.