What is the inviolable contract and what does the Chamber recommend doing about it?

The inviolable contract is a state law (KRS 61.692) that that prohibits state employees’ retirement benefits from being reduced, altered, amended or repealed. The retirement benefits that teachers and local government employees receive have similar protection, although certain benefits for retired teachers (such as health insurance and use of sick leave in calculating benefits) are not covered. The Kentucky Chamber does not recommend changing the inviolable contract for current public employees or retirees.