“It’s a good first step”, agencies say pension problem isn’t over

FRANKFORT, Ky. (WTVQ) – Some Kentucky universities and agencies are breathing a sigh of relief after the governor signed a new law giving them options for paying steep pension costs.

But now, those groups are thinking about what to do next.

“It’s a step in the right direction but more needs to be done,” says the Coalition Against Domestic Violence CEO Angela Yanneli.

The coalition has shelter programs across the state.housing and supporting victims trying to regain their independence.

It’s also one of the agencies affected by the new pension law which allows quasi governmental agencies to buy their way out of the pension system or stay in and pay a higher rate.

“It got to the point where the rate was going to go up to 89 plus percent so we did have to go and say we can’t do this because we know after this they’ll be another increase and we would not be able to keep our doors open,” says Yanneli.

Yanneli says the new law gives them immediate relief allowing them to stay in for now without paying more.

“For a year it puts us in a much better spot because it does give us that rate freeze for one year so that is a tremendous amount of relief,” says the CEO.

But after that year the coalition, and its programs, are put in a tough spot.

“If we stay in the rates could be over a 100% but if we get out whether it’s lump sum or over a period of 30 years is going to break many of our programs,” says Yanneli.

She says some of the coalition’s smaller programs likely won’t be able to pay, whether it’s to get out or stay in.

“If just one or two of our programs should happen to close you can imagine what the impact would be on the other programs that would have to pick up those survivors and provide those services,” says Yanneli.

She says it’s vital to get this pension issue right to help those victims who so desperately need it.

“I mean there is the potential that more victims will not get served and if we should lose more lives because of this it would be very traumatic,” says Yanneli.

The new law doesn’t just affect quasi-governmental agencies, but also regional universities.

We spoke to Eastern Kentucky University.

A statement from President Michael T. Benson says without this new law the university would’ve had to pay more than 80% of employees’ salaries into the system.

Now, Benson says administrators will work to figure out which of the new law’s options EKU should take.