Come this time next year, many employees at Kentucky’s regional universities will be considering pension decisions. The General Assembly last night approved pension reforms for quasi-governmental agencies like health departments and spouse abuse shelters and the four schools, EKU, WKU, NKU, and Murray. The measure provides a way to exit the state retirement system.
An earlier version provided for paying back the principal to the Kentucky Employee Retirement System over 25 years. Eastern Kentucky University Vice President David McFaddin said that timeline is not in the final bill. “I think if we looked at what we’re contributing now, the payoff would be substantially quicker than the 20 or 25 years because of the contribution rate on the annual payment,” said McFaddin.
EKU administrators will be looking at the possibility of paying off the amount owed to the state in a lump sum. A large number of current workers at EKU could still opt to stay in the state retirement program. Others would have no choice. Those hired after January of 2014 and would be required to go into a new defined contribution plan.
Eastern Kentucky University President Michael Benson came to Frankfort on the last day of the legislative session. He spoke with WEKU's Stu Johnson.
