Kentucky House passes bill creating hybrid pension plan for future teachers



A bill creating a new pension tier for future teachers that will require them to pay more toward their retirement and work longer before they can earn full benefits passed the House Thursday.

House Bill 258, sponsored by Rep. C. Ed Massey, moved to the House floor on a 14-4 vote and cleared the lower chamber hours later on a 68-28 vote. The measure, if passed, would put teachers and others covered by the Kentucky Teachers Retirement System hired after Jan. 1, 2022, into a new hybrid pension plan that includes foundational and supplemental benefits.

Massey, R-Hebron, said the proposal would keep future hires from joining “an already burdened and overtaxed” defined-benefit pension system at KTRS, which actuaries expect will have unfunded pension liabilities totaling $14.8 billion and have 58.4% of the money needed to cover pension costs for current retirees and workers by fiscal year 2023.

Author(s): Kevin Wheatley

Publication Date: 4 February 2021

Publication Site: WDRB

Lawmakers vote to revamp Kentucky Teachers pension plan



The Kentucky House of Representatives voted to approve a bill that would move participants in theĀ Kentucky Teachers’ Retirement System, Frankfort, to a hybrid plan.

The House voted 68-28 in favor of the bill, which creates a tier for teachers hired after Jan. 1, 2022.

Rep. C. Ed Massey sponsored the bill because the $21.6 billion pension fund “has a huge unfunded legacy,” he said in a telephone interview.


Publication Date: 8 February 2021

Publication Site: Pensions & Investments