Teachers union vows retribution for Kentucky pension overhaul
FRANKFORT, Ky. — Republican lawmakers in Kentucky passed a pension overhaul last week that preserves benefits for most workers and does little in the shortterm to address the state’s massive debt.
They did it Thursday in response to one of the worst- funded public retirement systems in the country and in defiance of a powerful teachers union that vowed political retribution.
The 291- page proposal suddenly appeared Thursday afternoon. By 10: 30 p. m., it had raced through the House and Senate and was on its way to the governor’s desk. The speed of the vote prompted warnings of unintended consequences, but Republican leaders noted much of the bill’s content has been vetted publicly for weeks in similar bills.
Republican Gov. Matt Bevin tweeted his support for the bill, saying public workers owe “a deep debt of gratitude” to lawmakers who voted to pass it. But many teachers in the state’s second- largest school district reacted by saying they would not come into work Friday, prompting the Fayette County Public Schools to announce they would close for the day.
The bill removes some of the most vilified provisions of previous proposals. Current and retired teachers, who are not eligible for Social Security benefits, would still get annual raises of 1.5 percent in their retirement checks. And current workers would not have to work longer to qualify for full benefits.
But new hires would be moved to a hybrid plan. They would be guaranteed to get back all of the money they and taxpayers contributed to their retirement accounts, plus 85 percent of any investment gains. The state would keep the other 15 percent.
“Think about that. That’s insane,” Republican Rep. Chad McCoy said.
But the bill would also remove new teachers from an “inviolable contract” that would protect them from future benefit changes.