Two decades of underfunding. HB258’s two-tier system risks draining the rest.
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Sources:
– Teachers’ pensions funded at 91% (’00)
– Brent McKim elected to President of JCTA (JCPS Teachers’ Union) (’01)
– Term limits for JCTA Executive Officers removed, changed to 3-year terms
– McKim promised to return to the classroom
– Last time Actuarially Required Contributions (ARC) met (’04)
– Pension drops below 80% funding for first time, considered “insolvent” (’05)
– Teachers began to fear pensions would “go up in smoke.” (’05)
– Kentucky’s Pension system already in “dire straights.” (’08)
– Economic recession hit (’08)
– $12-15 MM in “suspicious payments” for $100 MM placement in exotic funds (TRELF Lawsuit, ’10)
– $1.2 Billion single day in risky, toxic investments (Aug. ’11)
Interview with Ramsey – After Steve Beshear’s first term
– Looting the Pension Funds, Rolling Stone Magazine (Sept. ’13)
– 1st TRELF lawsuit filed against Blackstone & other managers (Oct. ’14)
– All that Glitters Is Not Gold, Roosevelt Institute (Nov. ’14)
The Week in Public Finance: Moody About Ratings, the Worst-Funded Pension and Data Disappointment
If you thought Illinois was in rough shape…Governing, May 22, 2015
– 2nd TRELF lawsuit filed (Aug. ’15)
– Standard & Poor’s lowers credit rating (Sept. ’15)
– JCTA blocked transparency of private money (equity) contracts (Feb. ’16)
– 3rd TRELF lawsuit filed (Nov. ’16)
– Cavanaugh McDonald study valued pensions at 35% funded (Dec. ’16)
– As a result, TRS abandoned GASB 67 standards, went to less stringent CAFR instead.
– Moody’s downgrades Kentucky credit rating (July ’17)
– McKim quietly re-elected to another term via electronic ballot (Spring ’18)
Kentucky is in a $43 billion pension hole. Here are some reasons why.
The Courier-Journal, Dec. ’18
– Furious over “sewer” pension bill, Kentucky teachers storm Frankfort (Mar. ’18)
Surprise pension bill wins final approval in Kentucky legislature. Teachers outraged.
– Standard & Poor’s lowers Kentucky credit rating again (May ’18)
– Kentucky Supreme Court Strikes Down Pension Law That Sparked Teacher Protests (Dec. ‘18)
– State Auditor’s report noted TRS in violation of Kentucky statutes (Feb. ’19)
The Bottom Line: Pension systems out of compliance with state law, auditor says
The Lane Report, Aug ’19
– “The Pension Gamble” aired on PBS, featuring Dr. Randy Wieck (Oct. ’19)
– To ensure election integrity, JCTA members voted to return to paper ballots (PR Meeting, Fall, ’19)
– JCTA leaders justified resurrection of electronic election software due to COVID (according to sources)
– Better Schools Kentucky (PAC) election riddled with anomalies (Nov. ’20)
– Blackstone CEO led big donors pouring money into super-PAC with ties to McConnell – Bloomberg, Dec. ’20
– Blackstone CEO, McConnell’s largest donor, tied to insurrection? (Jan. ’21)
– Two-tiered pension bill introduced. Co-sponsored by “Sewer Bill” Committee Chair, Rep. Jerry Miller (Jan. ’21)
WATCH: Teachers Pensions Swan Song
Guests Chris Tobe and Dr. Randy Wieck
CONTACT YOUR LEGISLATORS AT 800-372-7181 AND TELL THEM TO VOTE NO ON HB258!
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