Tuesday, March 10, 2015

Senate Republicans pass on $3.3 billion teacher pension loan

Kentucky's Republican Senate caucus wants a second opinion on the state's teacher pension woes.

The Kentucky Teachers' Retirement System is running out of money. Officials say the system has a little more than half of the money it needs to continue making benefit payments to retired teachers. Officials asked lawmakers to borrow $3.3 billion to help stabilize the system, and the Democratic-controlled House of Representatives approved it.

But Senate Republicans want to wait a year before approving what would be the largest loan in state history. Monday, a Senate committee amended the bill to create a task force to study the problems facing the teachers' retirement system. Republican Senate President Robert Stivers said lawmakers would address the funding issue next year once the study is complete.