Resolution calling for Gov. Bevin, lawmakers to honor benefits accrued under inviolable contract tabled by KRS board

09/14/2017 05:30 PM

FRANKFORT – The Kentucky Retirement Systems board of trustees tabled action Thursday on a resolution urging Gov. Matt Bevin and lawmakers to honor benefits for pensioners and government workers accrued under the inviolable contract.

KRS trustee Jerry Powell offered the resolution, which also called for full actuarially required contributions to the Kentucky Employees Retirement System and State Police Retirement System, toward the end of Thursday’s meeting but some trustees voiced discomfort with voting on something they had only just seen.

Instead, they opted to send the resolution to legal counsel and reconsider it at a later meeting.

The resolution follows a series of recommendations from the PFM Group on how Kentucky should reform its public pension programs, which are among the worst-funded in the country with $37 billion to $64 billion in unfunded liabilities. Some of the group’s proposals drew criticism from retirees and workers, such as rescinding previously awarded cost-of-living adjustments.

Bevin and top legislators have tried to ease some of those concerns, telling retirees that COLAs would not be taken back as lawmakers reform Kentucky’s government pensions.

House Speaker Jeff Hoover has said a special session will likely be called in October, but the KRS board isn’t scheduled to meet again until a special meeting Nov. 13. John Farris, who chairs the KRS board, said another meeting could be called before the special session.

“If we get an answer early and it’s something that we feel like we need to act on either before, during or after a special session, we’ll certainly call members back together,” he told reporters after Thursday’s meeting.

Jim Carroll, co-founder of Kentucky Government Retirees, voiced a similar desire for KRS to defend retirees’ pensions during the public comment period of Thursday’s meeting.

Carroll told reporters that he would like to see the KRS board recognize and enforce the contractual rights of pensioners.

“If it is taking a position that it doesn’t have that duty, then I’d like for them to transparently explain why they don’t believe they have that duty for the benefit of those of us who are members,” he said. “Just tell us your reasoning why you don’t believe that it’s within your scope of fiduciary duties to, if necessary, litigate when contract rights are abridged.”

Despite attempts by top elected officials to mitigate their doubts on pension reform, public employees have inundated KRS with requests for pre-retirement consultations. Interim KRS Executive Director David Eager said such meetings have jumped 37.8 percent in September and 15.4 percent in October compared to the same months last year, with annual growth estimated at 13.2 percent.

Eager said some KRS employees are taking half their lunch breaks and working overtime to handle the surge in appointments.

Asked whether the uncertainty of a pension reform proposal makes the task of consulting with employees ahead of retirement more difficult, Eager said in some ways, that makes the job easier.

“All we can say or refer to is the facts, so if people are speculating the what-if questions, we can’t respond to the what-if questions because all we can deal with is what’s in the statutes right now,” he said. “If you retire based on what’s in the statutes today, this is what you’re going to get.”

Kevin Wheatley

Kevin Wheatley is a Video Journalist for Spectrum News and covers Kentucky politics and all the goings-on at the State Capitol. Kevin was born and raised in Frankfort so he grew up around politics and has always had the drive to follow the political process and hold lawmakers accountable. Before joining Spectrum News Kevin covered government and politics for The State Journal in Frankfort. You can watch Kevin’s work weeknights at 7:00 and 11:30 on Pure Politics, available exclusively on Spectrum News, HD Channels 403 and 715. You can reach him at kevin.wheatley@charter.com or 502-792-1135.

4 Comments

Comments

  • sally sue wrote on September 14, 2017 09:06 PM :

    Not surprising given Bevin has stacked the board with his appointees. They outnumber elected members almost two to one. It’s clear who they support and it’s not KRS members.

  • sadkywkr wrote on September 18, 2017 08:37 AM :

    It is so disappointing that the Board does not do its job of representing the MEMBERS best interest which is the whole purpose of the board. The Board is not there to represent the KLC, KACo, Chamber of Commerce, or the whims of the Governor and the legislature. Their fiduciary duty is to recommend solid investments that will benefit the members of the plan. They cannot properly uphold this duty when the General Assembly and the Governor in the past would not pay the whole ARC. Every employee made their contribution.

  • sadkywkr wrote on September 18, 2017 08:37 AM :

    It is so disappointing that the Board does not do its job of representing the MEMBERS best interest which is the whole purpose of the board. The Board is not there to represent the KLC, KACo, Chamber of Commerce, or the whims of the Governor and the legislature. Their fiduciary duty is to recommend solid investments that will benefit the members of the plan. They cannot properly uphold this duty when the General Assembly and the Governor in the past would not pay the whole ARC. Every employee made their contribution.

  • Raymond Hurst wrote on September 18, 2017 10:55 PM :

    Is this one of the boards that the Governor has appointed the majority of the members to? Hmmmmm.

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