Kentucky Governor Matt Bevin and Republican lawmakers have run up against strong opposition to their proposals to put the state’s financially troubled pension systems on more solid footing.
Many teachers and superintendents across the state have expressed concern about proposed reforms that that would go from a current guaranteed pension, called a defined benefit plan, to a less predictable 401(k) style plan.
Kyle Lively is superintendent of Somerset Independent Schools. He said the district has 137 teachers and administers, and a large percentage of them are at the 22 to 23 year mark in their career. Lively fears many administrators may decide to retire before they planned to, leaving the district struggling to attract new teachers with less attractive benefits.
“Finding people who truly see it as a career and they want to stay in education, to me when you put it into a defined contribution plan as opposed to a defined benefit plan, they can leave in 5 to 10 years, they’re not vested, they have no reason to stay. And people aren’t necessarily feeling valued either with that,” said Lively.
A bill on the proposed pension changes for teachers and other state and county employees will be voted on in a special legislative session by the end of the year.
