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From Forward Kentucky: HB 525 is worse than you know: Pension machinations, bankruptcies, and privatization

Berry Craig
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By IVONNE ROVIRA

On Feb. 28, 10 school districts had a “sick-out” — a strike, in essence — in order to head to Frankfort to protest HB 525, a bill that would transfer control of the Teachers Retirement System out of the hands of teachers. But even the protesting teachers do not realize the severe ramifications of this pension bill.

Like the iceberg that doomed the Titanic, most people looking at HB 525 can only see the tip. But what’s under the water is much, much, much worse: In fact, HB 525 could lead to the bankruptcies of scores of counties, cities, and school districts across the state in a Koch brothers experiment where Kentucky would serve as the guinea pig.

Anyone interested in that iceberg tip can see our companion article “What Rhode Island can teach us about pension plunder.” Piece by piece, Kentucky legislators and elected officials are recreating the same environment that led to the plunder of Rhode Island’s pension fund. So, when we tell you that HB 525 creates an even worse crisis than pension plunder, you know it’s bad.

Read more here.