We've heard them periodically over the years… it's not unusual for rumors about possible retirement benefit changes to spread as we approach the beginning of any legislative session.
But this year, with the presentation of The PFM Group's third report on August 28, a Special Called Session of the Kentucky General Assembly on the near horizon, and the 60-day Regular Session beginning in January 2018, the rumors are becoming even more prominent.
While we don't know what the future holds, here are a few points to consider:
1. Rumors are just that: rumors, and not facts. If something affecting the funding or the benefits administered by Kentucky Retirement Systems is confirmed, we will inform you via this website and KRS social media outlets, such as Facebook and Twitter.
2. Retirement benefits administered by KRS are based on state and federal law. This means the Kentucky General Assembly has to introduce legislation and pass it before any changes to benefits can occur. To stay current with legislative happenings, or to read more information about the legislative process, please visit the Kentucky Legislative Research Commission website: http://lrc.ky.gov/
3. Shifting assets from one plan to another is specifically prohibited by federal and state statutes. To put it simply, it cannot legally be done.
4. Retirements have increased, but are not spiking. For the first three (3) months of Fiscal Year 2018, retirements are up 13.8%.
5. KRS staff is staying current on retirement member consulting. We are working overtime and not accepting non-critical consulting for the time being, but retiring members are being served.
6. Our counselors and other KRS employees are not authorized to discuss hypothetical, or "what if," situations. We are only able to explain benefit options as they are currently written in state law.