Despite Sen. Thayer’s snark, Kentucky retirees deserve cost of living pension increase

I am a retiree of Kentucky State Government, primarily working at numerous Kentucky State Parks. On Monday Dec. 19, I attended a Public Pension Oversight Board (PPOB) meeting in Frankfort. The PPOB is a statutory committee and was established in 2015 due to concerns about the financial condition of the commonly referred to K nonhaz plan which is extremely underfunded — once reaching less than 12.9% funded in FY 2018. Currently the fund has improved because of additional contributions approved by Governors/Legislatures and is funded at 18.5%.

Here is the Kentucky Revised Statute that created the PPOB: 7A.200 Public Pension Oversight Board. The Public Pension Oversight Board of the Kentucky General Assembly is hereby established. The purpose of the board shall be to review, analyze, and provide oversight to the General Assembly on the benefits, administration, investments, funding, laws and administrative regulations, and legislation pertaining to the state-administered retirement systems.

Retirees understood they would receive an annual COLA of 1.5%. Due to the funding level Governors and Legislators failed to provide a Cost of Living Adjustment (COLA) for several years, with the last one coming in 2012. In order to address the critical funding level, the legislature enacted a law that stated a COLA had to be pre-funded which would cost an extraordinary amount of funding. I understood that and welcomed the additional influx of funds over the years.

The PPOB committee was hearing from Rep. Buddy Wheatley who has proposed that the Kentucky Legislature consider a one-time Cost of Living Adjustment for retirees who are members of the Kentucky Public Pension Authority (KPPA). The Commonwealth could afford this one-time benefit due to the amount of funds available in Kentucky rainy day fund, including federal dollars.

At the end of the meeting Senator Damon Thayer, R-Georgetown, who represents all of Scott and Grant plus portions of Kenton and Fayette, was recognized by the Chair for a question. Senator Thayer said I do not have a question but a comment. Here is his comment:

“Chairman McDaniel is not here today so I’m going to fill in for him as the grim reaper (said with a notable gleeful, giggle) and probably put an end to this conversation and say we are not opening the budget in 2023.

Thank you, Mr Chairman Merry Christmas, everyone.”

Here is a video link to that meeting https://www.youtube.com/watch?v=RgFSLgZkpJk

The adults in the room were gathered to discuss a proposed one-time Cost of Living Adjustment (COLA) for members of the state government pension plan. Members have not had a COLA since 2012. There are 114,000 retiree members of the Kentucky Public Pension Authority (KPPA) across our great Commonwealth. The cost of living over the past 10 years has increased 30% which means there are many retirees in the Commonwealth who are struggling, Senator (self-described Grim Reaper) Thayer.

The Legislature can “open the budget” to consider a bill to help retirees. One can contact the Grim Reaper at Damon.Thayer@lrc.ky.gov or Senate President Robert Stivers at Robert.Stivers@lrc.ky.gov. to express your opinion. Ask that the Legislature “open the budget” and allow our legislators to consider this proposed one-time COLA.

You can find email addresses for all legislators by going to https://legislature.ky.gov/Legislators/Pages/default.aspx or call the Legislative message hotline (800-372-7181) to leave a message for any/all legislators.

While I am writing this op-ed as an individual, I am involved with a couple of retiree organizations: Kentucky Government Retirees and Kentucky Public Retirees. You can find both organizations on Facebook.

Doug Price is a retired, doting Pops to 4 grandchildren and is very active in progressive organizations.