An analysis of Kentucky Gov. Matt Bevin’s plan to overhaul the retirement system for public school teachers shows it would cost taxpayers an extra $4.4 billion over the next 20 years.
It’s the first official scoring of Bevin’s proposal, which he unveiled last month. A similar analysis will be completed for the retirement system that covers state workers.
The analysis by Cavanaugh Macdonald Consulting shows taxpayers won’t see savings until 2034. By 2038, the state’s unfunded liability would be $11 billion instead of $9.6 billion under current law.
The analysis assumes teachers would retire in greater numbers and the state would earn an average of 6 percent on its investments. A Bevin spokeswoman says the budget office is still reviewing the report, but said it does show savings over time.