Exclusive to this blog from Kentucky teacher and pension activist Randy Wieck.
Here is an update on Kentucky teacher pension: KISS IT GOOD-BYE
Kentucky public school teachers were recently told by Governor Matt Bevin, that if the Kentucky Supreme Court rejected recent Senate Bill 151, (known in Kentucky as the Sewage Bill – all mentions of sewage were replaced with wording referring to teacher pensions in order to rush the bill through the legislature in the waning hours of the previous session) the teachers “could kiss your pension good-bye.”
The Supreme Court then proceeded to kiss SB 151 good-bye on procedural grounds.
Shortly after the Supreme Court ruling, the national credit rating agency Moody’s held that the court ruling was considered a “credit negative” for the pension as there was really no indication new funding was envisioned for the pension.
And as if that were not enough, Fitch rating agency stated in the last few days (January, 2019) that Governor Bevin’s proposed pension fix didn’t really address the underlying problem of underfunding.
This was a rebuke to the Governor’s claim that the “reforms” he had attempted to push through in the Sewage Bill 151 would “save” the Kentucky teacher pension, primarily by placing new hires in a 401K-style plan (effectively cutting off funding to the current plan).
Now, Republicans – who hold super majorities in both houses of the Kentucky legislature – have formed a working committee to “study” the teacher pension – and arrive at solutions to the problem.
This comes after actuarial study after expensive actuarial study (all effectively ignored by several Kentucky governors and legislatures) during the past 14 years have told Kentucky it needs to honor the ARC, (actuarial required contribution).
This new working committee can extend its working mandate if it so chooses, all the way to December, 2019.
Many would call the committee a new Flimflam Machine designed to forestall any hard decision that might result in properly funding the Kentucky teacher pension. How many more “studies” must be made? There is really only one determination that this committee could HONESTLY arrive at: FULLY fund the ARC of the Kentucky Teacher Retirement System, which – to restore the plan to a healthy level (around 90% funded) after years of plundering it to fund other projects – is estimated at roughly $2 billion per YEAR (GASB 67 rules) for the next 20 years or so, and this must be done WITHOUT taking money from the retiree health trust fund, $500 million of which was skimmed in the last budget, robbing Peter and repay Paul.
Will we Kentucky teachers ever learn?
WILL KY TEACHERS EVER WAKE UP TO THIS ONGOING SCAM?