Kentucky State Treasury Newsroom
Kentucky Treasurer Hollenbach Proposes Kentucky Retirement Account
Entitled the KYRA Bill ( pronounced kigh-ruh) which stands for Kentucky Retirement Account, Kentucky Treasurer Todd Hollenbach told reporters in a Capitol rotunda news conference in Frankfort today that the proposed legislation allows the Commonwealth to act as a catalyst to make available a privately run retirement savings plan for all Kentuckians who lack access to a plan at their workplace.
“There are 786-thousand Kentucky workers who could take advantage of the Kentucky Retirement Account Program”, the Treasurer stated. “KYRA will provide an opportunity for them to insure they have enough income to support themselves when they retire.”
State Representative Martha Jane King of Lewisburg, the primary sponsor of the bill said, “The goal of this legislation is to promote financial freedom, give Kentuckians a choice, give employees control, save taxpayer dollars and do it in such a way that there are no ongoing costs or risks to employers or the state.”
Treasurer Hollenbach outlined the essential points of the bill, “It will be privately administered similar to the management of the Kentucky Deferred Comp system for public employees.
It will be voluntary with a default auto enrollment unless the employee decides to opt out.
It will be portable. Workers can take their plan with them if they change jobs. It will cost employers nothing and it will cost the state nothing.”
The Treasurer expressed gratitude to Representative King for her support and leadership on the issue. The Treasurer was also grateful for the endorsement of his proposal by the American Association of Retired Persons (AARP). Research by AARP found that inadequate retirement savings is a major concern.
“Failure to save adequately for retirement,” Representative King stated,” will lead to increased burdens on a costly and already overburdened social service network costing taxpayers millions of dollars. And if action is not taken quickly this crisis threatens to plunge many of our seniors into poverty, disrupt entire families, and impact our overall economy”, she added.