Kentucky Pension Crisis: Are benefits too generous?

The benefits in Kentucky Retirement System plans compare “highly favorably” to those offered by Kentucky’s 12 largest private employers, according to PFM Consulting Group, a consultant retained by Gov. Matt Bevin's administration to look at the pension problem.

PFM noted that private-sector employers have largely shifted to 401(k)-style retirement plans and rarely offer retiree health care benefits.

PFM reports teachers also get a "comparatively generous overall benefit." The consultant reported that teachers can retire at any age with 27 years of service or at age 55 with 10 years of service. "As a result, according to actuarial reports, the average age at retirement of a TRS member is 55 — below the age when teachers in many other states are even eligible for full benefits," PFM reported.

Kentucky public employees and retirees say that they make, or made, much lower salaries than their private-sector counterparts and their total compensation of wages plus benefits is lower overall. The promised benefits, many say, are why they took a lower paying job. They note they've given up some benefits in reform efforts of the last decade. And they warn a reduction in benefits to current workers and teachers will trigger an exodus that will drive up pension costs and hurt the quality of public services. 

What you need to know:More questions and answers about Kentucky's pension crisis