As members of the General Assembly return to Frankfort for the 2016 Regular Session, they will find themselves facing a multitude of challenges, one of the more critical being pension funding. Legislative action in the 2013 Regular Session provided the framework for funding the plans managed by the Kentucky Retirement Systems (KRS). Public employee (and teacher) pensions will require tens of millions of new dollars in the budget simply to stem the erosion of funding levels.
These higher funding levels will do little to improve the financial condition of these plans. Only through additional funding, possibly from a dedicated revenue source, will KRS have adequate resources for investing, the source of 60-70% of funds from which benefits are paid. The KERS Non-Hazardous plan, likely the worst plan in the country with a funding level of 17.7%, is in critical need of new money to stave off insolvency.
Kentucky Public Retirees (KPR) is a statewide membership group dedicated to protecting the pension benefits earned by public government employees. Our members have met face-to-face with many legislators during 2015 expressing their concern over the situation in which the pension plans find themselves. We urge retirees to contact their legislators themselves at www.lrc.ky.gov to express their concerns. KPR will be staying atop legislative action affecting pension funding.
KPR is also sponsoring a Rally in the Capitol Rotunda on January 27 (1 p.m.) to express our concerns to the Governor and Legislators. Those wishing to add their voices to the message are invited to attend. Public retirees and those now eligible to retire are urged to visit our webpage, www.kentuckypublicretirees.org, and consider joining. 2016 membership is free and dues are but $15/year thereafter.
We are responsible for advocating for the pensions we earned. The time is now to do so.
Larry P. Totten
Legislative Chair,
Kentucky Public Retirees
Frankfort