KTRS Changes

If you haven't read about the proposed changes to KTRS contributions, you may want to take a look at the following story: http://www.moreheadstate.edu/news/index.aspx?id=53716

At the BOR work session on 18 February, we were told that it was likely that individual members would be required to contribute an extra 1% (more or less) phased in over the next couple of years. The increased contribution was to go entirely toward the medical insurance fund for retired workers. Now, of course, we are hearing that the proposed increase will be 3%, phased in over six years. While the change in contributions will help shore up the funding of KTRS, the increased contribution is not likely to be popular with current members, especially since the changes will only affect the medical insurance of retired members.

What you may not realize is that the participating universities will also have to come up with a 3% increase (again, phased in over six years) as part of their contribution. This change will have the basic effect of a budget cut for MSU and the other institutions that utilize KTRS, and I don't have to explain how challenging it will be to pay for this increase under the current circumstances.

We'll have to see what happens with House Bill 540, but I am relatively sure that some sort of increase will indeed be enacted--for us as individuals, and for the University as a whole.

This issue is not an issue the Regents or the administration can solve, but I would be glad to hear your opinions.

Ron