Fri April 4, 2014
Kentucky Public Schoolteachers' Pension System Still Underfunded in New State Budget
An attorney with Kentucky’s public schoolteachers’ pensions says that the fund could run out in about 20 years if lawmakers don’t act.
In the recently passed $20 billion state budget, lawmakers gave only half of the requested amount to the Kentucky Teachers Retirement System, which provides pensions for the state’s public school teachers.
Beau Barnes is general counsel for the KTRS. He says that he’s optimistic that lawmakers will begin addressing the underfunded pension, which currently has nearly $13 billion in debt, but a plan must be implemented soon, or the debt will grow exponentially larger.
“If a pension fund does not have a funding plan in place, then we’ll have to use a worst-case scenario projection of what the actual unfunded liability’s going to be. In that case it’s almost going to double our unfunded liability to about $23 billion,” he said.
Barnes says if nothing is done soon, the pension will have to start selling off some of its assets just to make payroll.