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KTRS Funding Work Group

The Kentucky Teachers’ Retirement System Funding Work Group submitted its 18-page report to state leaders on Dec. 4 after eight meetings where the 25 members searched for ways to address the unfunded liability of educators’ pensions.

While no comprehensive recommendation was made, the group’s efforts prompted dialog that is ongoing among stakeholders and that could produce a consensus solution before the legislature convenes in January. The group’s efforts identified possible components of a funding solution and guiding principles to be used going forward.

The group suggested the state reach full funding in 30 years by 2046 and that the Inviolable Contract be honored. Failure to find a solution in the 2016 General Assembly will continue to hurt the state’s credit rating, the work group found. The group also recommended that savings from revenues currently going to KTRS, for items such as debt service on bonds issued to pay cost of living increases, be dedicated to the pension plan as the current obligations are retired.

LINK TO FULL REPORT: KTRS Funding Work Group Final Report

How the KTRS Funding Work Group was formed

“Our teachers are the foundation of our educational system for the future of our children and grandchildren. We must assure that the Kentucky Teachers’ Retirement System is able to fully honor our commitments to our teachers and those who retired from teaching. I know that the experts selected to be part of the KTRS Working Group will find substantive ways to secure the future of the fund.”

—Steve Beshear
GOVERNOR

In an effort to strengthen the solvency of the Kentucky Teachers’ Retirement System (KTRS), Gov. Steve Beshear by executive order has created a 23-member work group made up of policy and education leaders.

The Kentucky Teachers’ Retirement System Funding Work Group, to be led by former state senator and former State Board of Education Chairman David Karem, will meet over the coming months to develop recommendations to resolve a funding shortfall and stabilize and secure funding for the system that serves over 75,000 active and over 45,000 retired members.

The work group will review best practices in other states regarding pension benefits, conduct a comprehensive review of funding options and make recommendations for improving the fiscal solvency of the KTRS. The work group may also contract for consulting services.

With the fiscal crisis that faces the KTRS, Gov. Beshear is asking the work group to complete its work and submit its report to him on or before Dec. 1, 2015.​

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Members of the KTRS Funding Work Group


  • David Karem, former state senator and former chair of the Kentucky Board of Education
     
  • David Adkisson, CEO of the Kentucky Chamber of Commerce
     
  • Mike Armstrong, executive director of the Kentucky School Boards Association
     
  • Jason Bailey, research and policy director for the Mountain Association for Community Economic Development
     
  • Mary Ann Blankenship, executive director of the Kentucky Education Association
     
  • State Budget Director Jane Driskell
     
  • Auditor of Public Accounts Adam Edelen, who shall serve as a nonvoting member
     
  • Amanda Ellis, associate commissioner, Office of Next Generation Learners in the Kentucky Department of Education
     
  • Secretary of the Finance and Administration Cabinet Lori Flanery
     
  • Gary Harbin, executive secretary of the Kentucky Teachers’ Retirement System
     
  • State Treasurer Todd Hollenbach, who is also a board member of Kentucky Teachers’ Retirement System
     
  • Secretary of the Governor’s Executive Cabinet Mary Lassiter
     
  • Secretary of the Personnel Cabinet Timothy Longmeyer
     
  • Roger Marcum, chairman of the Kentucky Board of Education
     
  • Brent McKim, Jefferson County Teachers’ Association president
     
  • Brigitte Blom Ramsey, executive director of the Prichard Committee for Academic Excellence
     
  • Dr. Tom Shelton, executive director of the Kentucky Association of School Superintendents
     
  • Dr. Bob Wagoner, executive director of the Kentucky Retired Teachers Association
     
  • Wayne Young, executive director of the Kentucky Association of School Administrators
     
  • Senator Damon Thayer
     
  • Senator Joe Bowen
     
  • Senator Morgan McGarvey
     
  • Speaker of the House of Representatives Greg Stumbo
     
  • Representative Derrick Graham
     
  • Representative Jeff Hoover
     

 

 

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