Yesterday the Kentucky legislature quickly passed pension reform. It came after months of bitter fighting in the media and Frankfort over what changes should look like. I haven't had a chance to study what's in the bill outside of what's been reported in the news, but here are some initial thoughts.
From what I can tell, the pension reforms adopted yesterday a) leave benefits for current retirees entirely intact; b) only make changes for active employees related to sick days that educator groups have long accepted; c) change benefits for future employees that will make the system more financially sustainable for the future; and d) fully funds the pension system for the first time in decades. This sounds to me like a win for teachers and taxpayers. (Except that it does nothing to address the current, massive liability that will continue to suffocate the state budget for years, but many educators wouldn't accept any changes that would actually do that). Otherwise, it's exactly the kind of common sense changes that I've been calling for that protect current employees and retirees as much as possible what making long-term changes for the future.
As for how the bill was passed, outrage over this reflects either an unfamiliarity with how laws get made, or a bit of hypocrisy when we just don't like the outcome. Lawmakers pass last minute bills all the time, especially when it's a topic they've been working on daily for six months. New legislation gets tacked on to existing, unrelated bills all the time, but especially when time is running out (as it is on this legislative session). It's a canard to say that "no one read this bill." These pension proposals are like a book lawmakers have read a dozen times. If someone says, "Here's the book you know backward and forward, but without these specific chapters," you don't need to read the entire book again to know what's in it. As for whether it is constitutional to pass a bill like this without actuarial analysis, there seems to be disagreement about this which I'm certain courts are going to work out. [UPDATE, 3 pm, 3/30/2018: February 16 was the last day to file new bills; any new legislation coming through the General Assembly had to be handled with amendments or substitutions to existing bills. Lawmakers are under no obligation to let an unlimited number of people attend their deliberations in person, though they are obligated to make their deliberations public. The discussions held in a small conference room (where it was not possible to admit the general public) were recorded and should be available via Kentucky Education Television's archives)].
The reaction to this common sense bill makes it clear that many educators had no intention of supporting any changes whatsoever to the pension system. Which also means that there was no need for further discussion on the topic in the state legislature. You're either going to stop kicking the can and do something, or you're going to let a broken system continue to spiral out of control. I'm proud of courageous legislators who finally did something that takes the problem seriously while addressing the vast majority of concerns public employees have expressed about changing the system for active employees and retirees.
Usual disclaimer: Views expressed on this website do not reflect the opinions of Western Kentucky University (where I am associate professor of educational administration, leadership, and research) or the Kentucky Board of Education (where I have served as a member since 2016).
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