A tax reform panel appointed by Governor Steve Beshear is considering a proposal that would result in more retirees having their pensions taxed. Lieutenant Governor Jerry Abramson is chairman of the Blue Ribbon Commission of Tax Reform. Abramson says members may recommend tweaking a policy that exempts annual pensions of $41,100 or less from taxes.
The Kentucky General Assembly’s pension task force hopes to come up with a plan in less than a month to reduce more than $30 billion in unfunded liability in the state’s retirement system. State Representative Mike Cherry co-chairs the panel which has been conducting public hearings and collecting information on the issue for months.