Forward Kentucky: Don’t believe the pension poppycock … it’s a divide-and-conquer strategy.
By IVONNE ROVIRA
State Representative Ed Massey has filed a bill, House Bill 258, to change the Kentucky Teachers Retirement Pension plan for teachers hired after Jan. 1, 2022. While Massey has some soothing words — as do others — do not be deceived. This is definitely an inferior retirement, and the opening salvo in a game of divide and conquer.
HB258 would require teachers to split their retirement contributions between a defined-benefit plan (what you normally think of when you think “pension”) and a defined-contribution plan (basically, a 401k). Right now, teachers pay 12.855% of their salary toward their retirement, matched by 13.105% by the state. In the new plan, teachers hired after Jan.1, 2022, would put 9% of their salary into the defined-benefit (real pension) plan, matched by the state at 8%, with both the teacher and the state putting up to 2% each in the defined-contribution plan.