Kentucky’s underfunded public employee pension system has been a topic of contentious debate for quite some time. Consequently, with reform and proposed changes by Governor Matt Bevin and the GOP administration, it seems the unavoidable shortfall in retirement funds is now being addressed with Pension Bill 102717, a 505-page proposal released on 10/18/2017. Currently, House Republican leaders “are making progress but still have no deal on a revised reform bill that can win passage in their chamber.” http://www.courier-journal.com/story/news/politics/2017/11/28/revised-pension-bill-close-but-not-ready/899638001/

Concerns have been voiced regarding the consequences of the proposed changes (e.g., undesirable 401(k) alternative; 3% increase for retiree health benefits; cost to taxpayers; increased difficulty attracting and retraining good teachers; cap of 27 years on benefits; extending retirement age), which will ultimately impact current and future teachers, as well as non-teaching positions. Opponents suggest the looming pension crisis is overblown and could be handled with less drastic measures. Advocates for the plan, “Keeping the Promise,“ suggest needed reform “is a comprehensive plan to save Kentucky’s ailing public pension system while meeting the legal and moral obligations owed to retired teachers and public servants.” https://pensions.ky.gov/Pages/index.aspx

Meanwhile, just after the proposal’s release, public employees were called to voice their concerns at a non-partisan event that “rejects the proposed changes to our systems and the challenges to our inviolable contracts.” https://forwardky.com/public-employees-grassroots-groups-plan-pension-rally/

The November 1, 2017 rally attracted hundreds who expressed their opposition. https://www.washingtontimes.com/news/2017/nov/1/hundreds-rally-for-pensions-as-lawmakers-seek-chan/

Since Bevin’s election in 2015, Kentucky pension reform has remained at the forefront and if legislation passes, adjustments would likely begin July 1, 2018. That said, local entities are wrestling with a potential mass exodus of retirement eligible teachers and what that will mean for districts, administrators, teachers, and ultimately students. One County Assistant Superintendent said, “If all 105 of those employees chose to retire or felt as though the state was offering them no other choice, the district would be significantly impacted.” http://www.richmondregister.com/news/a-significant-impact-school-officials-say-an-increase-in-retirements/article_1aa8c650-dc74-11e7-b06d-fbcfa55e1f35.html