The status quo is not sustainable and is seriously threatening retirement security for all public sector workers in Kentucky.
Billions in pension debt are growing in perpetuity unless significant changes are made.
Pension debt will continue growing even if the plans earn their expected investment return because of the "back-loaded" funding method used to pay off existing unfunded liabilities.
Several of Kentucky's pension funds may completely run out of money with just one or two more bad years of investment returns.
Previous changes have not fully fixed the problem.
Shifting KRS's state employees (non-hazardous) to a cash balance plan in 2014 was a positive step that restrains the future growth of liabilities. But that change did not solve the plan's solvency problem for retirees and most current workers.
TRS remains on an unsustainable path and needs to pursue reforms to ensure that all commitments made will be met. This must be done by putting in place a new, sustainable plan for future workers, focused on providing retirement security while reducing the exposure of state and taxpayers to financial risk.