Six state lawmakers are being tasked with finding solutions to Kentucky’s under-funded retirement system for public school teachers.
Legislators debated a plan in this year’s General Assembly session that would have borrowed more than $3 billion in bonds to shore up KTRS.
State Senator Joe Bowen of Owensboro was among Republicans who objected to taking on more debt.
"Our opinion was that it was a huge risk to do this and if things didn't work out we stood the chance of jeopardizing the plan even further," Bowen said.
Senator Bowen is one of the appointees of the committee that will offer new recommendations to the governor by December 1. The panel will have its first meeting on Friday.
Bowen told WKU Public Radio that new money must be found to invest into KTRS and structural changes are required that will likely affect new hires.
"They're going to be looking at a new retirement plan," stated Bowen. "We not talking about going from a defined benefit to a defined contribution. That's never been part of the conversation, but what we are saying is that new hires will probably have to work longer."
Bowen says the KTRS work group will also have to address pension spiking and cost of living adjustments in order to bring a long-term impact to the pension system.
KTRS, which covers about 120,000 active and retired members, has an unfunded liability of $14 billion.