With pension questions still unresolved, Eastern Kentucky University regents Thursday stressed the need for quick, unified action. The state recently approved House Bill 1 that requires universities and other state agencies to make a decision to stay or leave the Kentucky Employees Retirement System. The regents received a list of possible actions that include installment or lump sum payouts and the option for some employees hired before 2013 to remain in the system.
Chairperson Lewis Diaz said the board needs to seek outside help to understand the financial implications of each option and thoughtfully convey each step of the process to the employees involved.
“What is the fiscal impact of the each option?” he asked. The next step, he said, would be to have a conversation with employees.
President Michael Benson said he is meeting with several other university presidents next week to collaborate on a unified plan of action. That could include, according to him, pooling money to hire a company to do the necessary financial analysis. The state’s next deadline for action is Dec. 31.
University Council Dana Fohl said the university lacks some very basic information about the money they are being asked to pay to leave the pension system.
“There are a lot of questions that are unanswered, questions about who is in it, how it got that high, how is it calculated, if they were somewhere else in state government in and landed here last, how do we get tagged with all of it.”
The regents took no formal action during the meeting but there was a clear consensus that quick action was needed.
