*****PRESS RELEASE**** KENTUCKY RETIRED TEACHERS SUPPORT HOUSE BILL 4 TO REFINANCE TEACHER RETIREMENT PLAN Legislation Introduced by House Speaker Stumbo is Fiscally Responsible, Win-Win Solution That Protects Taxpayers and Retirees LOUISVILLE, KY, JANUARY 26, 2015 – Retired teachers across the state support House Bill (HB) 4 that was introduced this month by Greg Stumbo, Speaker of the House of Representatives of the Kentucky General Assembly. The legislation would restore the financial integrity of the Kentucky Teachers’ Retirement System (KTRS) and protects the financial security of some 141,000 Kentuckians. The bill calls for a combination of bond proceeds and state appropriations to pay the state’s past due contributions to KTRS on an actuarially sound basis, and it sets forth a plan to support contributions in future years. “HB 4 is a win – win solution, and it will put KTRS back on track financially,” said Bob Wagoner, Kentucky Retired Teachers Association (KRTA) executive director. He said, “We appreciate Speaker Stumbo’s commitment to get the teacher retirement plan back on strong financial footing in the most cost-effective way possible. Retired teachers never missed their payments to KTRS during their working years. Now, the financial integrity of their pension is critically important as it is the main source of income for most retired teachers because they do not receive Social Security.” “We hope the House and Senate will take action on HB 4 next month following the recess. It’s vitally important to enact the legislation during the 2015 legislative session. Failure to act will mean that the plans’ unfunded liability will increase even more under new accounting rules, which could harm Kentucky’s bond rating and increase taxpayer costs. We look forward to working with House and Senate legislators in the coming months to enact legislation,” Wagoner said. In addition to the bond funds, HB 4 allows for incremental increases in the direct state appropriation for the next eight years until the full contribution rate to the pension fund is reached. This will ensure that money will be in place to fully fund the rate as the bond proceeds are expended. The bill does not alter teachers’ pension benefits, and Kentucky Treasurer Todd Hollenbach, an ex officio member of KTRS, supports the legislation. Kentucky retired teachers consistently paid into their retirement plan during their working years, and the average monthly retirement benefit is about $2600. KTRS pays benefits to some 50,000 retirees and beneficiaries. Nearly all of these retirees live in Kentucky and contribute to the state’s economy by spending their pension benefits. In 2012, state and local pension benefits in Kentucky supported $5.4 billion in total economic activity along with some 42,000 jobs that paid $1.6 billion in wages and salaries. Kentucky retired teachers also make significant contributions to their local communities, volunteering nearly 965,000 hours valued at nearly $22 million in 2013. KTRS pension benefits are particularly important to older retirees in the state who are single and rely on KTRS to be self-sufficient. More than 90% of KTRS female retirees over age 80 are single, and some 70% of male retirees over age 80 are single. The Kentucky Retired Teachers Association is a not-for-profit organization established in 1957 that serves the states’ retired education professionals. KRTA represents nearly 30,000 Kentuckians across the state who are actively engaged in giving back to our communities through organized community service projects. Located in Louisville, KRTA also serves as the voice of retired teachers to help protect their financial security. More information is available at krta.org #KRTA #KyTeacherPension #KYGA2015
Posted on: Tue, 27 Jan 2015 01:20:19 +0000
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