Thousands have millions in pension purgatory
Numerous headlines have been dedicated to the state’s ailing pension systems, but locally, future benefits for almost 7,000 Franklin County residents retired from or working in state government remain uncertain.
Since 2007, Kentucky legislatures and gubernatorial administrations have only twice paid the recommended annual contribution to the state employee nonhazardous pension fund managed by Kentucky Retirement Systems (KRS) — the most ailing pension plan of the 10 plans in its system, with $11 billion in liabilities and $2 billion in assets. The nonhazardous pension plan has a 16 percent funding ratio.
Neither Gov. Matt Bevin nor the Republican leadership in the General Assembly has said definitively whether there will be a special session this year to address tax reform and the pension systems. But Bevin has indicated the benefit structure for Tier 3 employees, those hired after Jan. 1, 2014, will have to change.
According to the most recent data from KRS for fiscal year 2016, the benefit structure change would affect about 503 Tier 3 employees living in Franklin County. Proponents, like Sen. Julian Carroll, D-Frankfort, of wage increases for all state employees have said they are needed to retain state workers given the reduction in benefits.
Read more: http://www.state-journal.com/2017/02/02/thousands-have-millions-in-pension-purgatory/
