FRANKFORT, Ky. (AP) – A consulting firm says the pension system for Kentucky’s teachers has more money and less unfunded debt after the legislature decided to fully pay its annual funding request.
The system is about $14.3 billion short of the money it needs to pay retirement benefits over the next three decades. But it now has 57.7 percent of the money needed to pay that debt. Last year, the system had 56.4 percent of the money required to meet its obligations.
A report from Cavanaugh Macdonald Consulting showed the system’s investments grew by 10.5 percent. But pension system executive secretary Gary Harbin attributed the improved numbers to the legislature’s spending contributing more than $2 billion to the system over the past two years. That’s nearly 98 percent of what was requested.