Stumbo Backs $1B In Bonds For Kentucky Teacher Retirement System
With the Kentucky Teachers Retirement System laboring under the weight of $14 billion in unfunded liabilities, House Speaker Greg Stumbo says it’s time to consider using up to $1 billion in bonds to shore up the system.
The Floyd County Democrat plans to file a bill seeking the authorization by Friday.
"I don't generally favor bonding these pension obligations, but because the market is so favorable I think it would be irresponsible for us not to at least consider what they've proposed," he told reporters Thursday.
KTRS lacks nearly half of the funding needed to meet its future benefit obligations.
Stumbo says Republican Senate President Robert Stivers has been cool toward the bonding idea, but has yet to rule it out. The speaker’s bill is currently under view by pension officials.