A bill cutting benefits for retired public school teachers has cleared a key hurdle in the Kentucky legislature despite protests from educators chanting "vote them out!"
The Senate State and Local Government Committee voted 7-4 to approve Senate Bill 1. The bill cuts annual cost of living raises for retired teachers to 1% from 1.5%.
Republican Sen. Joe Bowen, who sponsored the bill, said it would save the state about $3.2 billion over the next 20 years, but many retired teachers in the room were angry about the provision to reduce cost of living increases. That included Debbie Harrod of Washington County.
“We’ve already done our part. They’re reneging on their part,” said Harrod. “Instead of paying in the system like they promised years ago. They took that money and did something else with it. We did our part.”
Williamsburg retired teacher Lola Greer said she believes the bill will be challenged in court if it becomes law. She said that will end up costing taxpayers.
Senate President Robert Stivers told the group of teachers he understood the frustration.
“People–I understand–believe that funding is a problem, but when individuals own actuary say that the funding mechanism is only 20% of the problem, you have to understand that 80% of the problem is systemic,” said Stivers.
The bill now heads to the Senate floor for a vote. If it passes, it would then need to be approved by the state House before it becomes law.
Kentucky has one of the worst-funded pension systems in the country. The state is at least $41 billion short of the money needed to pay benefits over the next 30 years.
Republican lawmakers said that's why they need to pass the bill, but teachers and other public employees said lawmakers should find new funding instead of relying on benefit cuts.
This story has been updated.
