Thanks to all who joined us Thursday evening for the Tele Town Hall. I hope the information was beneficial. Below you will find the talking points that were discussed during the teleconference and critical phone numbers. As mentioned last evening, we are entering a critical time, please call your legislator next week and share your concerns.
– Tim Abrams, KRTA Executive Director
COLA’s are part of the inviolable contract. COLA’s in TRS are prefunded, it is your money. This is supported by actuarial reports from the time this COLA became law. The retired teachers COLA contributed $0 to the pension problem A sixty year old retired teacher receiving $3000 per month would lose over $71,000 during their lifetime if the COLA is suspended for 5 years, saving the commonwealth $3.6 Billion over 20 years and even more beyond that time. The Governor has said if they do nothing it will cost every Kentuckian $10,000 – $14,000 but he doesn’t seem to mind charging a 60 year old retired teacher over $71,000 to bail out the government’s responsibility. Use the COLA calculator on teachfrankfort.org to find out how the COLA suspension would impact your personal finances. You will be shocked how much you will lose over your lifetime. Most retirees receive social security COLA’s, since retired teachers do not receive social security without the COLA retired teacher pay will not come close to keeping up with inflation.
Because Governor Bevin and the general Assembly funded 94% of the needed funds for TRS this past Biennium TRS has seen an increase in its funding status. Going from 54.6% funded to 56.4% funded. The Health insurance fund increased from 21.6% to 26.7% funding. This proves if the general assembly would fund the system it will return to strong solvency.
Closing the current system will cost the taxpayers of the Commonwealth more to keep the system solvent as shown by the recent actuarial analysis of the Governors plan.
TRS has continually outperformed public pension plans across our nation. Under the guidance of a Board elected by teachers and retired teachers, not political appointees with agendas.
Legislative Message Line – 1-800-372-7181
Bill Status Line – 1-866-840-2835
Calendar (Meetings) Line – 1-800-633-9650
TTY Message Line – 1-800-896-0305