Posted on 09/22/2021 8:26:57 AM PDT by Oldeconomybuyer
FRANKFORT, Ky. (AP) — Kentucky’s state pension systems are expected to need nearly $4.6 billion from the next two-year state budget, mostly to cover pension debts, officials told lawmakers.
The largest share will go to the Teachers’ Retirement System of Kentucky, the Lexington Herald-Leader reported. For fiscal year 2023, TRS expects to need $1.25 billion from the state; for fiscal year 2024, it’s $1.33 billion, lawmakers were told Tuesday. TRS provides retirement benefits to 56,629 retired Kentucky educators, with 73,151 more educators actively enrolled.
The state’s General Fund is about $12.5 billion a year, Rep. Jim DuPlessis said.
“So that’s 10 percent, basically, of the entire state’s General Fund budget ... is going to pay for educators’ pensions,” DuPlessis said. “It’s mind-boggling to realize. And when you hear that we need to pay teachers more, I agree. We need better roads, we need better this. But when 10 percent of any budget is going to an item, that’s significant.”
The state’s obligations to the Kentucky Public Pension Authority are estimated at roughly $1 billion for each of the next two fiscal years, including what it owes for state government employees and other public employees enrolled in KPPA for whom the state provides assistance on pension costs.
(Excerpt) Read more at apnews.com ...
Why are they still using defined benefit plans. Even New York is transitioning to defined contribution plans for state workers, hopefully teachers are next. Shift the risk to the teachers, from the taxpayers. We already have to pay very high annual school taxes and we get stupid graduates focused on climate change for all our money.
Gavin Newsom balanced the budget.
It appears they moved to a hybrid plan for new hires on 1/1/14. But the older hires maintained the plan they were in.
https://kyret.ky.gov/Publications/Books/Evolution_of_benefits.pdf
Yes, similar to NY state workers, they know this was a ponzi scheme. But Teachers are still separate I believe.
Over $22K per retiree needed. Is there nothing in the account at all at this point?
Rape of the taxpayer continues. Stories with grabbing headlines all distract from the simple fact that gov spends too much.
You want gov out of your face? Cut the spending. Sorta the whole idea of limited government.
Kentucky was using the “California math” for pensions. California teachers never came close to funding all their goodies. Neither did the Kentuckians, apparently.
In Oklahoma, our state government funds are actuarially sound (or slightly over-funded) because we pay lower benefits and participants put in more. Gee - what an unusual idea. Illinois, California, and now Kentucky should all try it.
Ah, I see what you mean. KPPS has the state and local government. They were talking about both plans in the same article; confusing.
Now that I’m on the right page (HAH!) it looks like TRS members make contributions; not sure how long they’ve done that though.
https://trs.ky.gov/active-members/membership/pt-or-substitute-teaching/
All full-time, part-time and substitute members make pretax contributions to TRS.
Employee Contribution Rates
Non-university 12.855%
University 8.185%
Working for the state government right below them (Tennessee), I’ve heard for years that the Kentucky pension systems have been woefully underfunded. Guess the chickens are coming home to roost. And at a bad time, too.
“So that’s 10 percent, basically, of the entire state’s General Fund budget ... is going to pay for educators’ pensions,” DuPlessis said. “It’s mind-boggling to realize. And when you hear that we need to pay teachers more, I agree. We need better roads, we need better this. But when 10 percent of any budget is going to an item, that’s significant.”
And if I’m not mistaken, the previous Governor was trying to do something about this, the teachers got mad, organized and played a substantial role in getting rid of him and ushering in Bashear. Who, shockingly became the Governor in a state DOMINATED by Republicans and lo and behold, his he was able to eke out his victory when the ballots from the Democrat leaning cities were tallied AFTER every place had already reported, IIRC. Imagine that.
Of all the things that need to be done to try and get control of our elections, one of them should be that no counting is done until all polls are closed, thoroughly searched by law enforcement and a poll watcher from each party present to sign off on it. Ballot boxes secured and counting done the next day or two.
I am from Illinois. I have read in different places that Illinois pension payments consume 25% of state revenue. My children’s two principals are retired at over $160K each, with 3% guaranteed raises each year. Their superintendent is retired at $220K per year. My small town has many policeman retired at over $50K per year.
I am from Illinois. I have read in different places that Illinois pension payments consume 25% of state revenue.
Full disclosure, I’m a retired teacher in MO. I believe our pension system is in better shape than IL or KY.
The previous gov. Bevin made deep cuts into other state agencies to bolster the teachers retirement funds. Several people I had worked with for 15-20 years were terminated because of budget cuts. I had people being fired at my place of employment and we went for many years without a raise and endured higher insurance costs to fund these increases.
The governor before Bevin was a Brasher as well and HE stole a chunk of the teachers retirement funds to spend in the general fund during his two terms rather than make cuts or raise taxes. So what do the brilliant and I REALLY use that term loosely “educators” of Kentucky do, they get mad at the governor who was trying to put funds back into their retirement fund and supported another Brasher for governor, Brasher jr. who’s daddy wiped out their retirement funds for governor and he’s been a total disaster from day one.
If I can afford it my grandchildren will not sit one day in a public school classroom. These “teachers” are some of the most arrogant, incompetent, America hating sh*t bags to ever suck air in a pair of lungs!!!
Thanks for the rundown.
I have friends in civil service up north. Do nothing but bitch about taxes.
But don’t dare talk about taking away their 20 and out, 6-figure saláriese, pensions based on OT bumps, etc etc.
Vicious cycle created to buy votes.
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