Tuesday, April 08, 2014

New State Budget Doesn't Fix Pension Woes for Kentucky Teachers

This from WKU Public Radio:
Public school teachers in Kentucky don’t get Social Security benefits. They can’t even claim their spouses’ either. So that makes their pensions all the more important.
But the already tight-as-a-snare-drum budget passed by lawmakers continues to underfund the Kentucky Teachers Retirement System by about half the amount they need to bring the system -- which is currently about $13 billion short -- into the black.
Beau Barnes is general counsel for the KTRS. He says that changes in federal accounting laws will only compound the problem.
“The sooner the funding issue can be addressed, the better, because the longer it takes, the more difficult it’s going to be to address because the funding status will continue to decline,” said Barnes.  “The GASB accounting measure of unfunded liability would have the pension fund running out of money in about 2036.”
Barnes says he’s optimistic the situation won’t come to that, and is looking forward to working with the governor and the legislature to address a problem to which, so far, they’ve given little more than lip service.

1 comment:

Anonymous said...

Hey who can retire at this rate? I am living in a world where I am suppose to be happy that I got a 1% raise after multiple years of student progress on the various state and national assessments. Guess I should just be glad I have a job. Good luck class of 2014, even if you get a job, you might not get to retire so I hope you like your career choice