Kentucky’s teacher pension policies are receiving near-failing grades in a new report.
The National Council of Teacher Quality gives the pension plan a D-, and points out that 48-percent of the Kentucky Teacher Retirement System consists of unfunded liabilities.
Council Vice President Sandi Jacobs says the vast majority of taxpayer funds going into the system isn’t being invested in the future retirement of current employees.
“Only 23 cents on the dollar—less than the national average—is going towards the cost of the system. About 77 cents are going toward the debt.”
KTRS currently has over $13 billion in unfunded liabilities. The state budget passed by lawmakers last year provided about half the money needed to bring KTRS into the black.
Jacobs says her group also considers the system’s five-year vesting period a negative feature.
“If you leave before five years you’re not eligible for future benefits. That’s a long time to wait.”
You can see the NCTQ’s report card on Kentucky’s teacher pension policy here.