FRANKFORT, Ky. (AP) -- A task force of government and business leaders have a huge task in finding solutions to the financial problems facing government retirement systems in Kentucky, Gov.  Ernie Fletcher said Monday.

“I think it’s probably one of the most significant fiscal endeavors that we will have in the commonwealth of Kentucky for several decades,” Fletcher told members of the task force at their first meeting.

Fletcher appointed the panel to study ways to solve the financial troubles facing the systems that provide pension and health care benefits for retired teachers and state employees.

Task force chairman John Farris, secretary of the Finance and Administration Cabinet, said the charge is twofold: How to fulfill obligations to current retirees and employees and to determine the appropriate retirement benefits for future employees.

A failed legislative proposal supported by Fletcher would have sold more than $800 million in pension bonds to give the systems a cash infusion. Pension benefits for current employees and retirees would have remained intact, while future employees’ retirement plans would have changed. Teachers would not have seen a change under the plan.

Fletcher said Monday that he still is considering calling a special legislative session, but he doesn’t expect state pensions and health care to be on the agenda because lawmakers haven’t yet agreed on how to proceed.

“The health care is the most complicated and difficult portion of it,” Fletcher said, “and that’s the portion that this commission is really going to have to tackle.”

Fletcher said other issues could be tackled in a special session, including financial appropriations to make improvements at the Kentucky Horse Park in preparation for the World Equestrian Games in 2010 and funding to cover the cost of a possible runoff election following the May 22 primary.

Some lawmakers have warned that state’s retirement system could face a financial collapse within 15 years unless something is done to shore it up.

The task force has been asked to complete its work and present a plan to the governor by Dec. 1, which would allow time for the legislature to tackle the issue when it convenes in January.

(Copyright 2007 by The Associated Press.  All Rights Reserved.)