Stumbo pension funding should be addressed potentially by tweaking benefits, ending double-dipping

Comments

• Pam wrote on July 03, 2012 09:45 AM :

  I am a former Director that spent my entire career (30 years) working for the KRS. I remember the years that following our annual actuarial studies, we would present our legislation based on those studies to increase employer/employee contribution rates to keep our system actuarially sound. Instead of receiving the increased rates, we received added benefits such as “retirement windows with enhanced benefits” from the Legislature to add an extra burden to our unfunded liabilities. Not only did every enhancement damage our system, it overloaded our employees with mandated overtime. We had no choice in the matter, either work it or be fired. We sacrificed time with our families that we will never get back. We gave of ourselves with mandated overtime for the last 15 years of my employment. Now these same people want to jerk me around by trying to abolish the “invoilable contract” that I was hired under in 1973. And while I worked for wages less than what I could have made in the public sector, he now wants to punish me for my commitment to the state by reducing my retirement since I fall in the over $50K position. Yes, I really wanted to work those 6 am to midnight hours. Yes, I enjoyed not spending time with my 2 small children. NOT! And another thing, when I was hired the legislators were a part of KERS and suddenly they establish their own system so they could control their own benefits and their own future. Well who the hell was looking after mine? I retired when I did (without a early retirement window) because I knew I could retire and make it without having to return to work. So now 11 years later, let’s pull the rug out from underneath me. Are you going to hire me at the age of 57 with 2 replacements, one which went horribly wrong, to make up for what you are going to take away from me? I receive no other benefits, so returning to the workplace would be the only option I would have. So Mr. Stumbo, instead of punishing those of us who trusted the government and the conditions in which we were hired and for all those times you ignored the requests of KRS for additional funding, for once do something that is right. It’s time for YOU and the Legislature to fix what YOU did thru all those years without jeopardizing the benefits of current employees and retirees. I find what you have done and what you are considering to do as reprehensible.

• Paula Moore wrote on July 03, 2012 10:19 AM :

  Watching the Speaker twist the truth about this issue makes me ill. I happened to be the analyst in the Governor’s budget office with responsiblity for KRS from the tenures of Governor Wilkinson thru Governor Patton’s first term so have some knowledge about what really happened. My perspective is somewhat different than his.

• sally sue wrote on July 03, 2012 12:18 PM :

  “But Stumbo…disputed the notion that the General Assembly was to blame for shorting the fund.”

  Surprise, surprise.

• Sandripple wrote on July 03, 2012 01:18 PM :

  I don’t think he meant that he could reduce the benefits of existing retirees. If they could they would have already.

  As far as the inviolable contract being broken, it would not be very inviolable if was that easily broken. That too, would be subject to legal challenges. Thus far courts have upheld the inviolability of our present retirement system.

• Margaret wrote on July 04, 2012 05:41 PM :

  It’s obvious that Stumbo knows even less about personnel management than he knows about KRS. There is no actual thing as a “double- dipper.” People who have worked all their careers at less salary than warranted, and who have PAID into those retirement accounts all their careers, are drawing BACK what they paid, along with the investment interest and dividends on THEIR money as managed by KRS. The legislature is supposed to also pay in its share as a form of matching component and part of the contractual retirement benefit. Except the legislature quit paying all of their obligation. KY retirees who return to state government are no different than military retirees, federal retirees, or private retirees who go to work for KY state government. (Tip: Smart private sector CEO’s love to have retirees return at lower salaries with abundant knowledge. It saves money.) And no, returning retirees since 2008 do NOT get a second retirement. They’re not allowed to invest anymore in their own retirement unless they do it through a private 401 or 457 – with no match either. Typical stumbling Stumbo.

• Vicki wrote on July 05, 2012 09:57 AM :

  I couldn’t agree more with Pam. We’ve had our pension funds raided for years, and now Stumbo and company are going to try to alter the contract current retirees are under?? There will be a class action suit that will make your head spin if this happens. I hope people more knowledgeable than Stumbo will reform the system fairly, and leave current retirees (who have EARNED their pensions) alone. By the way, kudos to Ryan (the reporter) who has obviously studied the issue more than Stumbo.