Thursday, February 8, 2007

Kentucky Governor struggling to shore up retirement system

The Associated Press reports serious financial liabilities are facing the retirement system for state employees and teachers.

Gov. Ernie Fletcher will ask lawmakers to make an infusion of at least $50 million into the state’s shaky retirement systems for teachers and state employees.

The move is intended to head off a projected financial liability that could force the state to reduce retiree health benefits by 2013 and pension payments by 2021. Fletcher said the issue was raised repeatedly in town meetings he held across the state in recent weeks.

A coalition of advocacy groups had recommended that state officials address the problems in the Kentucky Teacher Retirement System and the Kentucky Employees Retirement Systems. The rising cost of health care in recent years has strained the systems.