Kentucky's pension systems are slated to have to pay out more than $17 billion that the state doesn't have.
The numbers come from Kentucky Retirement Systems director William Thielen, who testified before lawmakers in Frankfort Monday. He says the state's various pension funds have only a fraction of what they need to pay all potential retirees.
Thielen says if lawmakers make good on a promise to fund the pensions with the recommend amount, known as the ARC, it'll take a few years before the unfunded liability starts to drop.
“It’ll bottom out around 2018 or ‘19, and then start increasing. But, again, that depends on the full ARC being paid and for us meeting all of our assumptions, and most importantly our investment assumptions," Thielen told lawmakers.
Gov. Steve Beshear has appropriated about $200 million for KRS over the next two years.