This wouldn't solve the problem overnight. But as the months & years would start passing by, this problem would slowly begin to go away. The solution is simple. Make state employees work until they are 65 years old. Just like those of us in the private sector. The state employees that read this will give me hell over this. But I don't care, bring it on.I mean some 18 year old kid gets a job with the state & retirees when he's 44 years old, what else would you expect other than debt. If a law like this was implemented. You would have very few new state retirees over the next 15 years, & the debt problem would go away. And besides why are government employees allowed to retire in their 40s, but those of us in the private sector are forced to work until we're 65.
This would solve the states pension debt problem
- Thread starter TopCatCal
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Another option would be to get rid of traditional style pensions for FUTURE state employees. Give them a 401k plan like most other workers. It could offer a generous match but it would fix the state's cost.
For employees already in the pension system, enact casino gambling and assign half of the state's take to reduce the pension shortfall until it is paid off.
For employees already in the pension system, enact casino gambling and assign half of the state's take to reduce the pension shortfall until it is paid off.
That would mean a bunch of 65 year old teachers too. Ew. Bob wouldn't get any more thread ideas.
This problem wouldn't exist if the State simply funded the pension fund. That is the only problem. And the solution is to simply have the state put back in the money they owe to the fund. Also a little jail time for the politicians who essentially robbed the fund would go a long way to ensure that it won't happen again in the future.
legalize gaming and legalize the marijuana. tax dollars will flow.
Buncha worthless, double-dipping fatasses up on ******** mountain in Frankfort.
like this. Put casinos at the horse tracks and go full on gaming. Huge economic boom. Legalize marijuana and grow it with permits throughout eastern kentucky. get everyone off the opiates and have them raise whats been grown there illegally for years
Serious question. Other than teachers right out of school, how many folks that work for the state actually follow the career path you describe? Is there a glut of 18 year olds getting State jobs?
and perhaps where that "simple" funding would have come from. (cue Richie's VCR purchases)
For non hazardous positions, the days for working 27 years and out are gone......
I think it was September 2008, Kentucky Retirements Systems began implementing the rule of 87.
Hazardous positions went from 20 to 25 for full retirement.
I think it was September 2008, Kentucky Retirements Systems began implementing the rule of 87.
Hazardous positions went from 20 to 25 for full retirement.
I say put some sort of legalize gambling in the state park lodges and let each park keep some of the revenue for maintenance and the rest into the pension shortfall
This state needs to do 3 things almost immediately to help solve this problem:
1) Get rid of the retirement income tax exclusion
2) Legalize gaming, including sports
3) Legalize marijuana
The first one is the most obvious big ticket fix to bring in more tax revenue. The second two would put the state ahead of the curve for once in things that will be legal everywhere in 15 years anyway.
Of course, we'll probably do none of the three. We'll pass a bathroom law or something.
1) Get rid of the retirement income tax exclusion
2) Legalize gaming, including sports
3) Legalize marijuana
The first one is the most obvious big ticket fix to bring in more tax revenue. The second two would put the state ahead of the curve for once in things that will be legal everywhere in 15 years anyway.
Of course, we'll probably do none of the three. We'll pass a bathroom law or something.
Most of your lower paying jobs in the school system like cooks, bus drivers and janitors this is your draw. The pension gets these $8-$12 jobs to be considered good jobs. A $1000 a month pension to some people is like hitting the lottery.
Are you sure about that? I know they are not a part of KTRS (the teacher system) because my wife was a paraeducator at one time and did not pay into retirement until she was a certified teacher.
Regarding gaming... are you sure there's a lot of juice to squeeze these days? Indiana and Ohio have it, so you're not pulling people from those states. If you are just hammering your own people, that's not really a net gain for the state. You're basically just pulling it out of one pocket and putting it into another. Wouldn't be a big deal, but the majority of the gambling flunkies who lose their money probably can't afford it, so you're going to have to use state funds to pay them too.
Secondly, there are additional negative externalities that gaming brings - and again - you'll need to use state funds to pay that off. I enjoy gambling as much as the next guy, but I just don't think this is the answer to solving any funding problem.
Secondly, there are additional negative externalities that gaming brings - and again - you'll need to use state funds to pay that off. I enjoy gambling as much as the next guy, but I just don't think this is the answer to solving any funding problem.
I have only seen proposals to reduce the tax exclusion (currently $41,110) on certain retirement income (like 401k, pension, IRA, etc.). Most states have some level of retirement income exclusion. Some states like Texas, Tennessee and Florida don't tax retirement income at all. If Kentucky got rid of the exclusion, you would see many wealthier seniors flee the state. This would offset a good bit of the expected revenue gain.
http://www.kiplinger.com/tool/retirement/T055-S001-state-by-state-guide-to-taxes-on-retirees/
Not sure I agree with that. You're talking about $2,400 - obviously a good chunk of change but probably not enough to entice wealthier retirees to flee the state. If they want to move to Florida, they're doing it for the weather and complete lack of state income tax, not because of removing the retirement exclusion. Add in cost of living and they're not going to come out ahead.
That exclusion is worth several hundred million in a state that only brings in about 10 billion a year. It's the biggest ticket item out there. Unfortunately, no lawmaker wants to touch it since old people vote.
I'd much rather those dollars be spent here versus IN or OH. And legalizing sports gaming to go along with the horse racing would be a big draw over other states.
As far as your other point, the stereotype of the degenerate gambling junkie just doesn't hold water these days. Sure those people exist, but some people would have you believe they're 99% of gamblers. Those people are few and far between these days.
The exclusion is per person. So for a working couple you are talking about potentially $4,933 (($41,110 x 2) x .06 tax rate) of additional state income tax instead of $2,400.
I realize that, but I still don't think you're going to see people leave en masse. If we want to still leave some of an exclusion - which is the most likely answer since it's hard to completely take something away like that all at once - then I'd be fine with that.
But this exclusion is the biggest tax expenditure out there right now on the individual side. It has to be the first thing on the chopping block if the state is serious about reforming the state tax system. If it remains one of the "sacred cows" that Bevin has talked about, then it shows that the lawmakers aren't really serious about solving our problems.
My mil was a cook at a elementary school for 25 years. She gets $1000 a month from her pension.
OK....gonna chime in here because I witnessed this educator pension situation firsthand from a parent
--Contributed next to nothing for the 31 years as a teacher/principal
--Retired at age 54 drawing nearly $50k annually
--Died early 80's giving them well over $1,000,000 for doing NOTHING
--Made MORE in retirement than did working
THAT is the reason the system is broke.....NOBODY should be able to live off of the labor of others like that!
Corrupt, immoral, you name it.....And they wonder why it's busted.....If somebody wants to retire at whatever age, then THEY should have to save, invest, etc. to provide for themselves....We the taxpayer should not be obligated to foot that bill..
--Contributed next to nothing for the 31 years as a teacher/principal
--Retired at age 54 drawing nearly $50k annually
--Died early 80's giving them well over $1,000,000 for doing NOTHING
--Made MORE in retirement than did working
THAT is the reason the system is broke.....NOBODY should be able to live off of the labor of others like that!
Corrupt, immoral, you name it.....And they wonder why it's busted.....If somebody wants to retire at whatever age, then THEY should have to save, invest, etc. to provide for themselves....We the taxpayer should not be obligated to foot that bill..
It's this easy, fools. Jesus. But we will wait and lose all advantage we could've had. Colorado weed. **** son. Kentucky oughta be supplying the nation.
I'm not saying you're wrong, but I'd really like to see some stats (not from Casinos, nor from religious groups) about the customer segments of gambling. I know that just the top 10% of drinkers consume 90% of all alcohol. I assume that about 5% of all people who gamble make up 90% of casino revenue. Moreover, I'd like to know the demographics / salary ranges of that 5%.
Kentucky does vice as well as anyone east of Vegas - bourbon, marijuana, gambling, etc. It's high time we took advantage of it.
I am a state employee and even I find it to be a joke that someone can start working when they are 22 and retire with 27 years in at the age of 49. How on Earth does it make sense to be able to retire with more years left to live than you worked? Pretty sweet for the retiree, but not much common financial sense for the state. In my case...I planned/plan on working 35 years until I am 57. Closer to the private sector retirement age of 65 than the ones retiring at 49, but still a pretty sweet deal.
And for the guy who said his parent paid nothing for 31 years...BS. I pay more into my teacher retirement than my wife does into social security.
And for the guy who said his parent paid nothing for 31 years...BS. I pay more into my teacher retirement than my wife does into social security.
Meh, kind of. I think that the ability to buy time should be evaluated, but basically state employees trade really crappy wages for earlier retirement and I'm OK with that. When I started at the state as a computer programmer I made about half what private sector employees make. The benefits (at that time health insurance, retirement were tops) were a big draw versus private sector. I eventually got fed up with making those wages and left (most of the good ones did) for a private company. If I had stayed I would be about 5 years out from retirement (mid-fourties now). However, I have earned 7 figures more for myself having worked in the private sector so I'm glad but not really looking forward to another 25 years of work. For the record, there were some very hard-working and dedicated employees working for the Commonwealth when I was there. There were also people who found a nook somewhere and took a long nap every day on your dime. Most of those were "lifers" in the merit system who couldn't be fired. Infuriating.
Maybe start with the legislators having the same health care and benefits packages as all the other state and federal employees.
But it's Kentucky and they rather deal with making you child have to take Bible history class in public school.
Isn't an issue now, outside of things like computer programming, that the wages aren't that much lower than the private market? That's the issue with Federal. The wages caught up, but the retirement packages didn't adjust.
My understanding is retired Teachers are ineligible for Social Security benefits so that pension they paid into... and they pay more into it than they would Social Security... seems deserved to me. Teachers also have to buy their health insurance and don't get it provided at a low cost
Teachers also are ineligible for spouses Social Security. Their retirement system is in better shape than KRS in part because several years back they made an agreement with the state to increase their contributions along with the state. Of course the state reneged on their part. Teacher retirement gets more press because they are generally more willing to make noise and more importantly vote. Basically the legislators plan was "let's just keep doing studies until we can retire because our retirement is fully funded and we don't have to tell anyone how much we have."