Assumptions add unfunded liabilities in teacher pension fund

LEXINGTON, Ky. (AP) –  A new set of assumptions approved by the Teachers’ Retirement System of Kentucky will add $3 billion in unfunded liability to its books.

The Lexington Herald-Leader reports that it will also require up to $200 million more annually from the state budget.

The system’s Board of Trustees approved recommendations on Monday from an experience study.

The study is intended to set more realistic numbers for the agency’s assumed rate of investment return, payroll growth of educators and life expectancy of its retirees.

The $20.5 billion Teachers’ Retirement System provides retirement benefits to 56,629 retired Kentucky educators, with 73,151 more educators actively enrolled.