What administrators at many of Kentucky’s public higher education institutions may view as a partial remedy to increasing pension costs is now before Kentucky lawmakers.
The bill was filed by Representative James Tipton, who chairs his chambers' budget review committee on postsecondary education.
“It would allow them the opportunity to consider a buy out of the Kentucky Retirement System. It would give them an opportunity to get those actuarial numbers from the KRS board and then they could make a determination if it was feasible for them to pursue that as an option going forward with their retirement system,” said Tipton.
The legislation affects Eastern Kentucky, Morehead, Murray, Western, and Northern Kentucky universities. UK or U of L aren't affected.
In an email this week to faculty and staff, EKU President Michael Benson said the Kentucky Employee Retirement System required just over $13 million from Eastern this fiscal year. Without legislative action, Benson says that contribution would jump to almost $23 million next fiscal year.