What will be the cost of the final pension proposal?
Published 4:42 pm Sunday, October 15, 2017
What will be the cost of the final pension proposal for state/city/county workers and teachers, both retired and active, as well as new hires?
The plans should be coming out very soon. I encourage everyone to study them in depth, because it will affect each of us as a taxpayer. The success of any proposal for the various funds will depend on the money allotted for each of them and the formulas for funding them.
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Our school boards and state agencies can ill afford another budget cut, much less an added expense to fund these programs. Currently, teachers are encouraged to save their sick days, not so much for their pension calculation, but because the school boards (and state agencies for the Area Technology Centers) cannot afford to pay for substitute teachers. I have heard stories that some state employees are now having to furnish their own toilet paper and paper towels and soap. This is ridiculous.
There are outside influences who are spending a lot of money in the state to encourage individual 401K style plans because they stand to benefit the most from them. Don’t forget, our governor made his millions with hedge fund investments. The Kentucky retired teacher pension fund is one of the strongest in the nation with a very low administrative cost and capable managers. No individual can compete with their track record. Other states have gone to a 401K type funding and found it to be more expensive to administer than a defined benefit plan.
Our legislators have some hard work to do, but they chose to run for office, and they are getting compensated to make these decisions. Let’s hope they make the right ones.
LC Retired Teachers