In a nutshell...it's underfunded by billions of dollars because of past state legislatures raiding the retirement fund for other projects and not only never replacing that money, but for most years the past 20 years not fully funding it to begin with. The retirement fund has been used by the government for many years as their own personal "play" fund.

 

"Play fund may be a little strong, but Legislators did use dollars that should have gone to adequately fund the retirement systems to instead support other government "services" rather than cut programs or raise taxes. This was the classic "let someone else worry about the long term effect" of which politicians are famous. The auto mechanic commercial of years ago...."Pay me now or pay me later"....it's later.

 

Of course the problem will expand because I'm sure there will be several long term bureaucrats that will start collecting their pensions in a month or two!!

My wife works for Community Based Services and has for 17 years. She has a traditional pension plan and also a plan similar to a 401k.

 

This is definitely one of the biggest issues with me this election cycle. On one hand I know this has to be fixed and it probably will be painful for current state employees. On the other hand I know if something isn't done this state is in big trouble. At the end of the day there are a whole lot of politicians that should be in jail for the handling/stealing of money from the pension plans. It isn't a sustainable model long term but its a lot shorter term if you keep stealing the money out of of it.

 

The fact that Beshear chose to do nothing about it during his tenure pretty much shows what a joke of governor he was.

My wife works for Community Based Services and has for 17 years. She has a traditional pension plan and also a plan similar to a 401k.

 

This is definitely one of the biggest issues with me this election cycle. On one hand I know this has to be fixed and it probably will be painful for current state employees. On the other hand I know if something isn't done this state is in big trouble. At the end of the day there are a whole lot of politicians that should be in jail for the handling/stealing of money from the pension plans. It isn't a sustainable model long term but its a lot shorter term if you keep stealing the money out of of it.

 

We're coming at this from almost the exactly same viewpoint. :thumb:

 

My major problem with Conway was that he seemed to be taking the position of continuing to do what we've been doing on this issue.

 

I don't know how effective Bevin's 401k plan might be, nor do I know how Curtis' idea of a $5 billion line of credit would have been, but I can't imagine any scenario where staying the course helps at all.

This is a reality in the private sector for two decades. With high actuary and record keeping costs , under funding , and a growing life expectancy average. Defined Benefits just can not work anymore.

 

Obviously everyone wants one and it provides stability. But it also causes fraud . I understand there were promises made , but politicians lied and now we have to fix their lies.

 

I do believe positions such as police , firefighters and Military need to have pensions protected because of the type of work they do.

 

But it's a reality and inevitable teachers are not going to have pensions. It's just a matter of who wants to make the tough decision.

We're coming at this from almost the exactly same viewpoint. :thumb:

 

My major problem with Conway was that he seemed to be taking the position of continuing to do what we've been doing on this issue.

 

I don't know how effective Bevin's 401k plan might be, nor do I know how Curtis' idea of a $5 billion line of credit would have been, but I can't imagine any scenario where staying the course helps at all.

Same here. Conway gave me no reason to believe he wouldn't continue Beshear's plan of do nothing and let the next guy handle it.

This is a reality in the private sector for two decades. With high actuary and record keeping costs , under funding , and a growing life expectancy average. Defined Benefits just can not work anymore.

 

Obviously everyone wants one and it provides stability. But it also causes fraud . I understand there were promises made , but politicians lied and now we have to fix their lies.

 

I do believe positions such as police , firefighters and Military need to have pensions protected because of the type of work they do.

 

But it's a reality and inevitable teachers are not going to have pensions. It's just a matter of who wants to make the tough decision.

I think a few changes years ago could have possible helped to avoid the situation. The first would be to increase the years of service number. Instead of 25 years it should be closer to 40. Or maybe 40 but if you hit a certain age and have 25 years in you can get full benefits. Also, the obvious was stop freaking stealing the money put in.

Same here. Conway gave me no reason to believe he wouldn't continue Beshear's plan of do nothing and let the next guy handle it.

 

Of the 3 candidates, I think Curtis had a better grasp of the severity of the problem, and it's why I very seriously considered pulling the Independent lever for a second straight gubernatorial election. It was his solution to the problem that swayed me toward Bevin.

 

Again, I honestly don't know what to do about it. But I do think staying the course is the worst way to go.

I'm on pins and needles. I have 20 years in and will turn 50 in April. I have forgone a much larger salary but longer working hours in a private sector job for far less weekly pay but a (supposedly) decent retirement and a job that allows me to pursue my volunteer basketball coaching efforts in my off time. I am depending on my defined benefits retirement package as my primary source of income when I retire in 8-10 years...the package that I signed up for when I first took the job, making peanuts compared to others in my profession. Me, and most others I work with have not gotten raises in years, our health insurance is much more expensive than it used to be (as is most others), and over all net take home income is less for me today than it was 7-8 years ago when figuring in inflation, heath care, etc.

 

If they screw with me retirement I really don't know what I will do.

According to the system's 2014 actuarial valuation' date=' there is a $14 billion unfunded liability and a 53.6 percent funding status. This is compared with the system's $571 million unfunded liability and 95.7 percent funding status in 2000. Beshear appoints group to find solutions for Kentucky's unstable teacher retirement fund | Politics and Government | Kentucky.com

 

So if you're a young teacher in KY...move.

So if you're a young teacher in KY...move.

 

This could be an incorrect assumption, but from what I've read, I think older teachers and those getting ready to teach will be okay. For the rest (my wife & several family members included), well...

So if you're a young teacher in KY...move.

 

A matching 401K program is perfectly fine if you get involved with it in the beginning. On the other hand, for someone that has been under a defined benefits package for years and is older, like Randy Parkers wife and my situation...start screwing with that and it could mean trouble for us.

A matching 401K program is perfectly fine if you get involved with it in the beginning. On the other hand, for someone that has been under a defined benefits package for years and is older, like Randy Parkers wife and my situation...start screwing with that and it could mean trouble for us.

 

I'm sure there will be a form of means testing like the private sector. Where they will use a combination of your age and years of service to determine who is affected. I would agree you can't just cut off people nearing retirement.

I'm on pins and needles. I have 20 years in and will turn 50 in April. I have forgone a much larger salary but longer working hours in a private sector job for far less weekly pay but a (supposedly) decent retirement and a job that allows me to pursue my volunteer basketball coaching efforts in my off time. I am depending on my defined benefits retirement package as my primary source of income when I retire in 8-10 years...the package that I signed up for when I first took the job, making peanuts compared to others in my profession. Me, and most others I work with have not gotten raises in years, our health insurance is much more expensive than it used to be (as is most others), and over all net take home income is less for me today than it was 7-8 years ago when figuring in inflation, heath care, etc.

 

If they screw with me retirement I really don't know what I will do.

 

With no intention of sounding unsympathetic you'll do like I'll likely have to do, work until you're at least 70. I'm 55 and I'm looking at at least 10 and most likely 15 years before I can even consider retiring and I have doubts that I'll be able to physically make it that much longer.

 

If it's any consolation you are one of the people that I really feel for. You signed on for something and the Pola tuned it for you. You have every right to be concerned and upset.

A matching 401K program is perfectly fine if you get involved with it in the beginning. On the other hand' date=' for someone that has been under a defined benefits package for years and is older, like Randy Parkers wife and my situation...start screwing with that and it could mean trouble for us.[/quote']

 

I see, I didn't know they were offering a 401k now.

With no intention of sounding unsympathetic you'll do like I'll likely have to do, work until you're at least 70. I'm 55 and I'm looking at at least 10 and most likely 15 years before I can even consider retiring and I have doubts that I'll be able to physically make it that much longer.

 

If it's any consolation you are one of the people that I really feel for. You signed on for something and the Pola tuned it for you. You have every right to be concerned and upset.

 

We all make sacrifices. I made mine on the front end, foregoing a double to triple salary over what I make now, given the "promise" that sacrificing on the front I would be somewhat rewarded with a decent pension. I did this because my job allowed me to pursue my passions outside of work, where a much larger paying job would have also come with longer hours that wouldn't have allowed me to do that. But, I sucked it up, went through some tough financial times and am here where I am today.

 

Now there is the possibility that I may have to "sacrifice" again because the legislature has been a bunch of bumbling idiots and, quite frankly crooks when it comes to public employee retirement. Yep, I'm not very happy with the road I and many others in the same situation could be going down.

 

With all that said, I will keep my head and wait and see what goes on. Big changes are coming regardless, just in my everyday work life...big changes. I will hold my breath and see what happens.