KRS: Gov. Beshear's budget plan would result in pension shortfall - WKYT

FRANKFORT, Ky. (WKYT) – Kentucky Retirement Systems (KRS) officials say Governor Andy Beshear’s current budget plan could cause an $83 million dollar shortfall per year for the state’s pension system.

News partners at the Lexington Herald-Leader say the KRS Executive Director announced the shortfall during public testimony to lawmakers on Thursday.

Governor Beshear's office disagreed with that figure, estimating the shortfall to be closer to $25 million a year, citing the inclusion of roughly $100 million in his two-year budget to help public employers subsidize partial pension relief.

“Under Gov. Beshear’s plan, $110 million more for the agencies is going to the Kentucky Employees Retirement System in each of the next two years compared to the last budget,” said Beshear spokeswoman Crystal Staley. “The governor’s plan will result in an 84.41 percent employer contribution rate, which is about $25 million shy of the 93.01 percent rate, but is much greater than the 49.47 percent being contributed now.”

The Governor's partial pension relief, however, might not make it into the final budget bill before the General Assembly adjourns in April.

Following the hearing Representative James Tipton, the chair of the House's standing committee on post-secondary education said he was "sympathetic" to agencies facing pension contribution issues.

However, he also said there was a limit to how much longer their contribution rates can be capped by the General Assembly.

“The bottom line is, we have a large unfunded liability that needs to be paid," Tipton said. "So who is going to pay for it and when? If we keep freezing rates for people, that doesn’t really seem to be solving the problem.”

The General Assembly passed a law last year encouraging agencies to quit the pension system, but none have.

Let's block ads! (Why?)

"plan" - Google News
February 02, 2020 at 01:08AM
https://ift.tt/2vAcIin

KRS: Gov. Beshear's budget plan would result in pension shortfall - WKYT
"plan" - Google News
https://ift.tt/2un5VYV
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update

Bagikan Berita Ini