WKYT | Lexington, Kentucky | News

Cigarette tax eyed as way to rescue pension system

FRANKFORT, Ky. (AP) - A leading lawmaker says raising the cigarette tax to $1 a pack would generate about $100 million a year that could be used to shore up the pension system for government retirees.

House Speaker Greg Stumbo told reporters Tuesday that that's one of several options House lawmakers are considering to bolster the pension system, which has a $30 million unfunded liability.

The Republican-controlled Senate passed a bill last week that requires the state to make its full contribution to the pension system but doesn't identify a funding source to do that. Stumbo said the Democratic-led House wants a designated funding source.

The Senate bill also would create a 401(k)-like hybrid retirement plan that some House lawmakers want to remove from the legislation.

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The legislation is Senate Bill 2.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)


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