Pension Reform in 2015?

Kentucky legislators will consider a number of plans designed to reform the state’s pension plan for teachers, the Courier-Journal reports.

The Kentucky General Assembly has been tinkering with the pension plan in recent years in an attempt to shore up unfunded liabilities.

Proposals this year would seek to adjust future benefit payments and decrease cost-of-living increases.

The shortfall is a result of lack of proper funding over time by the General Assembly.

Some proposals would continue the practice of using borrowing through bonds to fund pension obligations, but it is likely that changes to benefits will also be required.

According to the report, a number of lawmakers oppose additional bonds to fund the system and are looking at more significant reform.

From the story:

So far, legislators have pre-filed at least four bills that would alter some aspect of teacher pensions, and leaders from both the House and Senate say any bonding needs to be paired with reforms.

“There is not a lot of enthusiasm for borrowing more money to pay off the KTRS debt without structural changes accompanying that effort,” said Senate Majority Leader Damon Thayer, R-Georgetown.

 

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The Pension Petition

The Jefferson County Teachers Association is out with a Change.org petition calling on Governor Beshear and the Kentucky General Assembly to fully fund the pension fund (which they haven’t done since 2008).

As of this posting, they already have over 9000 signatures.

No doubt, many teachers and their families will be joining the fight soon.

For more on Kentucky education politics and policy, follow us @KYEdReport