In less than nine hours Thursday, Republicans introduced and passed their controversial plan to overhaul Kentucky’s pension systems without the public ever setting eyes on the bill.
Here are highlights of the plan that have a direct effect on Kentucky’s current and retired school teachers:
▪ New teachers hired after January 1, 2019, will be put into a hybrid cash-balance retirement plan, where they will contribute 9.105 percent of their salary to their retirement plan, the state will contribute 6 percent of their salary and school districts will contribute 2 percent. Cash-balance plans are individual accounts that are considered less generous than traditional pensions but more reliable than 401(k)-style plans. The new cash-balance plan does not include a guaranteed 4 percent annual return for teachers, unlike the cash-balance plan offered to state and county employees who have been hired since 2014. It does guarantee that teachers won’t lose money on their investments.
Read more here: http://www.kentucky.com/news/politics-government/article207422044.html#storylink=cpy