Post by Logan on Dec 5, 2016 15:44:36 GMT -6
FRANKFORT, Ky. (AP) — Kentucky's troubled pension systems continued their downward slide in 2016, with plans covering teachers and state employees losing more than $1.8 billion in value while obligations are increasing.
The Kentucky Retirement Systems said the debt for its largest plan covering most state workers increased by $1.5 billion while its assets decreased by $347.5 million for the fiscal year that ended June 30. That leaves the system with just 16 percent of the money it needs to pay retirement benefits over the next 30 years, putting it among the worst funded public pension plans in the country.
Compounding the problem is the state has far more retirees receiving benefits than employees paying into the system.
"Our workforce is so retiree oriented, we are running out of time to fund it," said David Eager, the systems' interim executive director. "If you think of it in a medical sense, we are in triage. It's a serious funding problem."
Read more: www.courier-journal.com/story/news/politics/2016/11/28/kys-retirement-systems-continue-downward-slide/94569518/
The Kentucky Retirement Systems said the debt for its largest plan covering most state workers increased by $1.5 billion while its assets decreased by $347.5 million for the fiscal year that ended June 30. That leaves the system with just 16 percent of the money it needs to pay retirement benefits over the next 30 years, putting it among the worst funded public pension plans in the country.
Compounding the problem is the state has far more retirees receiving benefits than employees paying into the system.
"Our workforce is so retiree oriented, we are running out of time to fund it," said David Eager, the systems' interim executive director. "If you think of it in a medical sense, we are in triage. It's a serious funding problem."
Read more: www.courier-journal.com/story/news/politics/2016/11/28/kys-retirement-systems-continue-downward-slide/94569518/