Kentucky's pension costs will rise again because people may be living longer
FRANKFORT – The soaring pension costs to state and local governments — and quasi-governmental entities — will grow higher again next year because of some changes adopted Thursday by the board of Kentucky Retirement Systems.
The KRS board adopted a new mortality table that assumes retirees will live longer than the previous table assumed.
The assumption of longer lives for retirees means more months of benefit checks must be sent out by the troubled state pension plans, which, in turn, will require higher contributions by employers in the plan.
"It sounds like this was a change that needed to be made, but for cities it extends the problem of dealing with pension costs further into the future and makes the bill more hefty," said J.D. Chaney, deputy executive director of the Kentucky League of Cities.
Read more: https://www.courier-journal.com/story/news/politics/2019/04/19/kentucky-pensions-costs-rise-life-expectancy-does/3505823002/