House Approves Record Loan for Teachers' Pension Fund
The Kentucky House of Representatives has approved the largest loan in state history to help rescue the troubled teacher's retirement system.
The Kentucky Teachers' Retirement System pays $144 million in benefits every month but only has a little more than half the money it needs to continue making those payments. House lawmakers approved a $3.3 billion loan on Monday that would take advantage of historically low interest rates to help keep the system afloat by lowering the state's required annual contribution.
But the bill faces long odds in the Republican-controlled Senate, where lawmakers say they are worried about borrowing money to pay off a debt. Republican Senate President Robert Stivers argued the state should make wise investments with the pension fund's assets to stop the system from deteriorating.