Bevin administration asks for second chance at cost of KTRS plan

11/14/2017 01:43 PM

A day after denying the public access to the cost scoring analysis of the Kentucky Retirement Systems, now the Bevin administration is asking for a mulligan on the Kentucky Teachers’ Retirement cost analysis.

The Associated Press previously reported the KTRS plan would cost an extra $4.4 billion over the next 20 years. Bevin’s administration now contends that the consulting firm Cavanaugh Macdonald used different assumptions to calculate the cost for the teacher’s retirement plan.

On Tuesday, State Budget Director John Chilton called on the firm to redo its analysis of the Teacher Retirement System pension bill “utilizing a more appropriate set of assumptions for comparative purposes,” according to a news release.

Chilton is also asking for the analysis to take a 30-year look at the issue, rather than the 20-year analysis required under statute.

“The actuarial assumptions in Cavanaugh Macdonald’s most recent report are significantly different from those in the actuarial calculations provided to our consultants during the planning process,” Chilton said in a news release. “In the past, a lack of realistic and rational actuarial assumptions helped obscure the distressed financial status of the plans and contributed to the long-term unsustainability of the plans. We will ask Cavanaugh Macdonald to prepare calculations with several alternative assumptions so that policy makers can make informed decisions based on scenarios that include realistic assumptions and that are satisfactorily reconciled with those that Cavanaugh Macdonald provided in the past.”

According to the news release the new calculations will better help state lawmakers consider the proposal.

“There is no one single scenario that can be known in advance, and a recalculation of the analysis based upon the request provided by Director Chilton will provide a more complete picture of what the possible outcomes will be realized from the pension proposal,” the news release said.

Nick Storm

Nick Storm is the Anchor and Managing Editor of Pure Politics available exclusively on Spectrum News. Pure Politics is the only nightly program dedicated to Kentucky politics. Nick covers all of the political heavyweights and his investigative work brings to light issues that might otherwise go unnoticed, like his coverage of the backlog of DNA rape kits waiting to be tested in Kentucky. Nick is also working on a feature length bio documentary Outlaw Poet: A documentary on Ron Whitehead. Pure Politics airs weeknight at 7 and 11:30 on Spectrum News. Follow Nick on Twitter @NStorm_Politics. Nick can be reached at 502-792-1107 or nicholas.storm@charter.com.

1 Comments

Comments

  • Raymond Hurst wrote on November 15, 2017 09:50 AM :

    If a first you don’t like your ‘‘numbers’‘, try try again. If people are not sophisticated (smart) enough to understand you, let them know it. If you don’t want citizens to know your business dealings (illicit?); tell them you asked them to trust you to lead them but they have no business knowing anything about you. Tell people you are a Christian, and then prove it by lying and attacking poor working people and poor children and public employees. But then people knew these things before they voted for you, so it’s okay. As a citizen of the former Commonwealth of Kentucky, I find it is not so bad living in Russia, after all. If not for Matt Bevin telling us; we might never have known how stupid we really were.

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