►
Description
Attendance roll call 00:00:40
Presentation by David Eager 00:07:22
Presentation by Beau Barnes 00:58:20
A
From
this
morning
to
our
first
interim
joint
committee
on
state
government
and
state
and
local
government,
and
also
elections
and
Constitutional
Amendments,
we
welcome
all
of
the
members
here
today.
We
welcome
all
of
the
guests
that
are
with
us
this
morning
and
we
certainly
appreciate
you
taking
the
time
to
be
with
us.
So
just
one
thing:
if
you
have
your
cell
phone,
please
silence
your
cell
phone
at
this
time.
A
B
B
Branscome
representative
Callaway
representative
Chester
Burton
here
representative
Decker
representative
Duvall,
here
representative
Gooch,
representative
Graham,
here
representative
Heath,
here,
representative
hevron,
representative
heron,
representative
Hodgson,
representative
Huff,
here
representative
Iams,
here,
representative
Johnson,
here,
representative
cook,
representative
Derrick,
Lewis,
representative
Scott,
Lewis,
representative
Maddox,
here,
representative
Moser,
representative
Rawlings,
here
representative
Raymond,
here,
representative
Tate,
representative
Tipton,
representative
Weber,
representative
Williams,
here
representative
Whitten.
Here.
C
C
A
We
do
have
a
quorum
this
morning
and
again,
I
want
to
say
to
each
and
everyone
welcome
today
we're
glad
you're
here
on
this
first
interim
meeting
of
of
our
joint
committees,
I'm,
going
to
turn
it
over
first
to
Senator,
Mills
and
I
think
he
has
a
few
new
members
of
the
Senate
that
he
would
like
to
introduce
to
us
at
this
time.
Thank.
C
A
I
would
like
to
take
this
opportunity
to
introduce
Senator
Greg
Elkins
Senator
Elkins.
We
welcome
you
to
the
legislature
and
we
also
welcome
you
to
this
committee
and
I
want
to
add
a
personal
note.
Senator
Elkins
is
my
Senator
and
I'm
glad
to
have
him
as
my
new
senator
from
the
28th
district
and
Senator
Elkins.
A
A
That's
quite
all
right
and
again,
thank
you
for
being
with
us
today
and
I.
Look
forward
to
working
with
you
and
I
know:
you're
you're,
senate
members,
as
I
was
at
your
swearing-in
a
few
days
ago
a
couple
weeks
ago
and
I
know
they
were
very
excited
about
that
we
have
a
three
new
well,
actually,
we
only
have
one
new
representative
to
the
committee
representative.
Chad
all
is
joining
us
today
and
chat
representative.
A
All
we
welcome
you
to
this
committee
representative,
Whitten
and
representative
Williams
were
a
part
of
the
commit
state
government
committee
during
the
session,
but
they
are
joining
us
now,
as
as
their
first
times
on
the
interim
committee.
So
we
welcome
them
this
morning.
Do
does
anyone
have
any
guests
that
they
would
like
to
introduce
Senator
Thayer
go
ahead.
Thank.
E
You
Mr
chairman
over
here
to
the
far
right,
I'd
like
to
introduce
Sydney
zakich.
She
is
going
to
be
a
junior
at
Scott
County
high
school
she's
shadowing
me
today,
which
really
means
she's
shadowing
Rachel
Volk,
which
is
a
better
deal
for
her
Sydney,
is
a
part
of
our
Law
And
Justice
program
at
our
excellent
Vocational
Technical
School
Elkhorn
Crossing
in
Scott
County,
and
she
has
a
great
deal
of
interest
in
learning
about
the
state
government,
so
she's
here
today
to
do
just
that
in
this
committee.
Thank
you
and
welcome
Sydney.
Thank
you.
Mr
chairman.
E
A
There
being
no
other
guest
I
I,
do
need
to
back
up
and
make
an
announcement.
I
was
not
aware
of
this.
We
want
to
recognize
representative
Swann
that
recently
passed
was
a
member
of
the
house
and
I
I
apologize,
I
I
had
that
had
slipped
my
mind
that
representative
Swann
was
a
part
of
the
state
government
committee,
and
so
if
it
would
be
appropriate
at
this
time,
I
would
just
ask
for
a
moment
of
silence
from
all
of
the
members
and
all
of
the
guests
that
are
in
our
audience.
Today.
A
He
was
only
with
us
a
short
time.
I
got
to
know
him
rather
well
during
the
the
session,
and
he
was
a.
He
was
a
very
kind
gentleman
and
he
was
very
passionate
about
his
what
he
his
causes
were,
and
certainly
we
want
to
recognize
him
and
certainly
his
his
passing.
We
we
approached
that
with
sadness
today,
as
we
proceed
this
morning
into
our
meeting
again.
It
is
my
privilege
today
to
serve
with
the
other
chairman
of
the
other
committees
that
are
combined
in
this.
A
Today,
we
have
with
us,
David
eager
the
executive
director
of
the
Kentucky
public
pension
Authority
and
also
Beau
Barnes,
the
deputy
executive
secretary
of
operations
and
general
counsel
for
the
teachers
retirement
system
here
in
Kentucky,
Mr
eager,
is
going
to
begin
this
morning
and
Mr
eager.
Would
you
please
come
forward
this
morning
and
present
to
us
your
presentation,
and
we
welcome
you
today
to
our
committee
and
look
forward
to
hearing
what
you
have
to
share
with
us.
F
I'm,
the
executive
director
of
the
kppa
and
I
I,
welcome
being
here.
I
looked
at
the
list
of
members
this
morning,
I
think
11
of
you
are
also
on
ppob
and,
as
you
know,
we
routinely
meet
with
ppob
I
would
say
nine
or
ten
times,
and
we
look
forward
to
it.
It's
a
chance
to
advise
them
of
our
issues,
keep
him
abreast
of
what's
going
on
and
really
improve
the
communication.
So.
F
The
floor
is
yours,
go
right
now
and
I'll.
Also
thank
you
for
the
additional
Appropriations
we've
gotten
for
state
police
and
for
canine
has
over
the
last
three
years.
So
you'll
see
the
the
impact
on
that
my
presentation
says
overview
of
kppa.
It
really
is
it's
kpba
and
the
and
the
and
the
systems
we
serve.
We
are
you'll
see
in
a
minute.
We
are
the
administrators
for
all
of
the
Retirement
Systems
at
KNC,
at
least
in
State
Police,
but
good
news.
F
F
What
we
don't
talk
about
is
the
insurance
trusts,
for
the
five
of
them
are
over
funded,
fully
funded
as
we
speak.
K-9
has
is
not
fully
funded,
but
it's
at
79.
So
there's
a
lot
of
Assets
in
the
in
the
Health
Trust
and-
and
we
are
in
the
minority
of
states
that
fund
the
Health
Trust.
So
not
a
way.
Are
we
funding
one?
Most
others
don't
we're
funding
it
at
a
pretty
high
level.
C
F
Cers
has
both
the
C
has
both
the
CRS
has
and
on
has
268
000
members.
They
represent.
65
percent
of
our
members
and
16
billion
in
assets
or
69
of
the
assets
and
K
and
kers
and
sbrs
are
governed
by
the
KRS
board,
but
kers
says
138
000
members,
6
billion
in
assets,
4
billion
in
pension
2
billion
in
insurance
and
State
Police,
has
2
800
members
574
million
in
assets,
which
is
it
was
a
nice
uptick
based
on
the
215
million
dollar
appropriation
in
fiscal
22.
F
It's
up
to
814
in
total.
When
you
look
at
kppa,
there's
410
000
members
from
all
five
of
the
systems,
and
we
are
the
administrator
of
those
systems.
We
manage
the
assets.
We
are
essentially
the
legal
department,
the
benefits
administrators,
the
communications
department
and
effectively.
I
can
say
we
we
run
the
system
cers
as
a
CEO,
Ed
Owens,
so
is
sitting
in
the
back,
so
they
have
one
employee
and
KRS
has
one
employee,
John
Chilton,
also
their
CEO,
and
we
work
closely
with
them
interact
with
them.
F
F
So
there's
this
is
the
look
at
the
boards
and
I'll
I'll.
Take
a
step
back
and
say
that
if
you
went
back
to
April
of
2021,
there
was
one
board
KRS
and
the
difficulty
that
what
that
happened
was
or
the
the
circumstance
was
that
of
the
18
board
members.
12
of
them
were
state
appointed
and
six
were
appointed
as
seat
members,
so
she
had
a
one-third
representation,
but
they
were
two-thirds
of
the
assets
and
two-thirds
of
the
members
and
the
solution
was
House.
F
Bill
484,
which
created
this
structure
representative
Weber
sitting
over
here,
was
the
architect
of
that.
We
worked
closely
with
him
on
getting
it
put
together.
It
was
extremely
complex,
but
we
resulted
in
having
a
the
cerbs
board.
There's
nine
members,
three
are
elected:
six
are
appointed
off
of
a
list
provided
by
Keiko
League
of
cities
and
the
School
Board.
F
And
on
the
right
side,
we
also
have
nine
three
elected
and
six
appointed
by
the
governor
and
four
of
those
on
each
of
those
boards
form
our
board.
Our
eight
person
board.
So
it's
the
cers
and
it's
the
two
board
shares
is
the
two
investment
chairs.
It's
two
trustees,
one
elected
and
one
appointed,
and
they
form
the
eight.
So
there's
a
lot
of
moving
parts.
F
Membership
now
this
is
we'll
go
back
to
one
count
here:
KRS
and
I'm,
breaking
it
between
active
retired
and
inactive
and
tier
one
tier
two
tier
three
tier
one
being
the
benefit
that
existed
up
through
2008
and
and
then
tier
two
and
I'll
get
into
those
those
dates
in
a
bit,
but
we
have
on
on
Canine
has
we
have
124
500.?
If
you
look
at
the
total
column,
there
are
29,
000,
active
and
forty
five
thousand
retired.
F
F
So
we
are
funding
retirees
in
this
plan
on
the
back
of
a
smaller
number
of
active
members
who,
from
whom
were
getting
contributions,
it's
a
terrible
demographic,
but
we
House
Bill
8,
has
helped
us
solve
that
problem
and
get
us
out
of
that.
Out
of
that
dilemma,
the
Democrats
are
not
so
bad
for
ce9
has
but
I
would
point
out
one
statistics
there:
the
in.
C
F
F
Benefits
I'm
out
I'll.
Try
to
give
you
the
quick
highlight
of
the
two
Stu
benefit
pages,
but
essentially
tier
one
and
tier
two
are
defined
benefit
plans.
Tier
three
is
a
cash
hybrid
plan,
which
means
that
it
operates
much
like
a
401k,
but
it
has
a
guaranteed
return
and
elaborate
on
that
in
a
minute
contributions.
F
There
can
take
a
bow
for
his
work
in
setting
that
up,
but
it
really
has
reliefs
on
the
pressure
and
goodness
out
of
the
liability
to
a
large
extent
out
of
this
out
of
the
liability
and
without
going
into
too
many
details
again,
what
happened
with
the
pension
benefit
is
tier.
One
was
rich
by
standards.
Somebody
had
to
wait
for
you
took
your
high
five,
but
the
percentage
that
was
applied
was
in
the
area
of
two
percent.
F
F
F
In
other
words,
you
took
your
age
and
your
service
and
added
well.
They
have
to
be
at
least
87
and
the
minimum
age
you
could
retire
is
57.,
so
it
was
tightened
up
and
then
tier
three
has
the
same
roses.
Tier
two
retiree
health
benefits
also
were
tightened
and
I
used
tightened,
we're
trying
to
make
it
more
affordable
and
in
early
in
the
earlier
years,
that
was
an
expensive
benefit.
F
F
F
F
That
means,
if
we
close
that
plan
down
which
we're
not
going
to
do
and
you
paid
everybody
their
obligation,
what
they've
earned.
We
only
had
18
and
a
half
cents
on
the
dollar,
so
we
had
about
13
billion
of
unfunded
liability
in
that
plan
and
we're
working
our
way
out
of
it
and
I'll
and
I'll
deal
with
that.
F
F
Contributions
so
I've
broken
it
between,
and
this
is
kers.
The
combined
kers
plans
broken
it
between
as
you'll
see
on
the
left,
employer
contributions
and
special
Appropriations.
We
haven't
included
member
contributions.
This
is
just
what
the
state
is
paying
and
starting
in
2015.
You
can
see.
It
gradually
goes
up
every
two
years
and
in
2017
the
the
board
established
new
assumptions,
May
and
June
of
2017.
If
you
can
follow
this
timeline
with
me,
the
main
one
was
they
reduced
the
interest
assumption
from
six
and
three
quarters
to
five
and
a
quarter.
F
F
So
those
two
factors
said
we
got
to
put
more
money
into
the
systems
and
the
contribution
rates
went
from
went
from
49
to
83
percent,
so
on
June
30th
it
was
it
was
of
of
2018.
It
was
49
on
July
when
it
was
83
percent.
So
if
some
If
you
hired
an
employee
and
paid
them
fifty
thousand
dollars,
you
had
to
put
40
41
500
in
the
pension
fund.
F
It
discouraged
hiring
which
resulted
in
agencies
not
hiring
but
more
importantly,
agencies
Outsourcing
in
getting
out
from
under
that
cost,
and
that's
what
led
to
what
we
call
the
the
contribution
death
spiral,
the
more
the
contribution
rate
went
up,
the
more
they
outsourced
or
the
outsourced
more.
The
contribution
rate
went
up
and
it
was
just
a
Spire
which
house
bill.
F
F
Here's
another
good
story:
State
Police,
their
contribution
rate
in
2018
was
147
percent.
So
if
they
paid
a
trooper,
they
hired
a
trooper
at
fifty
thousand.
They
had
to
put
70
plus
thousand
into
the
retirement
system.
It
was
unbelievable
and
it
really
it.
It
was
a
cost
to
them
that
it
inhibited
their
ability
to
pay
it
at
levels
that
they
would
like
to
pay.
F
It's
coming
right
out
of
their
budget,
so
in
I
received
a
call
from
a
legislator
in
2022
who
said
what
would
it
take
as
a
one-time
deposit
to
get
that
contribution
rate
down
from
147
to
99.,
and
the
answer
was
215
million
and
the
appropriation
was
215
million,
so
we
got
the
contribution
rate
under
and
the
difference
between
those
two
can
now
be
applied
toward
higher
salaries
and
other
expenses
for
the
State
Police.
It's
freed
up
money
for
them.
F
Cers
Dr
dwell
long
on
it,
but
it
you
can
see
over
the
period
of
time,
15
16,
17,
18,
19,
a
phase-in
between
20
and
21.
The
legislature
froze
the
phase
in
so
it
was
previously
going
up
at
the
rate
of
12
percent
a
year,
and
so,
if
they're
paying,
if
they're
paying
a
dollar
the
next
year,
they
paid
a
dollar
twelve
next
year,
dollar,
24
or
25.
It
was
frozen
in
20
and
21
and
then
started
again
in
22.
F
F
F
This
home
in
26
more
years
25
more
years,
it's
a
long
time,
but
but
it's
that's
the
way
paying
off
a
debt
like
this.
It
works
each
year
right
now,
if
you
look
forward
a
year,
the
the
unfunded
goes
down
or
goes
yeah.
The
unfunding
goes
down
or
the
funded
ratio
goes
up
by
about
two
percent.
So
we're
going
to
go
from
18.5
to
maybe
20.5,
maybe
a
little
more
because
of
the
the
additional
Appropriations,
but
it
starts
off
it's
right.
It's
like
getting
a
statement
from
the
bank.
F
You
know
you,
you
made
a
2
000
mortgage
payment
and
200
went
to
the
principal
in
1800,
went
to
the
loan,
then
the
next
time
maybe
205
goes
to
principal
in
the
last
year
in
in
the
year
before
this
expires
in
2019.
The
funding
status
goes
up
by
eight
percent,
so
it's
almost
all
going
to
principle
at
that
point
in
time.
F
So
we're
going
to
get
in
is
projected
to
be
in
2049
61
million,
which
is
What's
called
the
normal
cost
and
the
normal
cost
says
what
does
it
cost
us
for
the
benefits
that
these
people
earn
in
this
year?
Forget
unfunded
liabilities:
it's
got
to
be
paid
off,
that's
all
paid
off
now.
So
what
does
it
really
cost
just
to
provide
the
benefits
that
are
earned
in
that
one
year?
61
million
is
the
answer
and
you
can
see
the
same
impact
on
cers
2049.
F
A
F
Asset
allocation,
I'm
divided
it
into
Global,
Equity
private.
These
are
the
categories
we
use
and
our
Consultants
use
and
our
our
investment
committees
use.
They
set
targets
and
ranges
on
each
of
these,
and
this
is
the
allocation
as
of
June
30th.
The
22.,
and
one
thing
you
could
pick
out
from
this
is
the
K.
The
case
non
has
is
much
more
conservatively
invested
than
the
C.
It's
got
46
equities
in
the
season.
We
got
30.3
it's
a
bit
of
an
anomaly.
It
should
normally
be
10,
but
there's
a
but
there's
cash.
F
That's
yet
to
be
deployed.
13.4
percent
cash
is
there
as
a
result
of
several
things,
the
appropriation
being
one
thing
and
and
a
termination
of
a
manager
was
almost
a
billion
dollars
and
it
hasn't
all
been
redeployed
yet,
but
are
we
typical?
No
we're
more
conservative
with
regard
to
Investments
I
would
also
say
that
in
K
and
NC,
the
the
core
fixed
income
is
short
duration
by
that
I
mean
if
the
average
or
their
maturities
are
shorter.
F
F
By
asset
category
in
the
left,
public,
Equity,
private,
equity
and
so
forth,
let
me
point
out
a
couple
of
things:
June,
30th,
2022,
the
our
equities
went
down,
18
percent
I've
been
here
in
Prior
times,
and
people
say
why?
Don't
you
have
more
equities?
Well,
there's
one
reason:
we
can't
afford
that
kind
of
volatility.
The
average
the
average
Equity
went
down
about
20,
we
went
down
18.
F
and
then
these
Alternatives
will
get
a
lot
of
comment
negatively
private
equity
and
Specialty
credit.
Real
estate
actually
did
fairly
well
and
they
won't
be
doing
well
this
year.
That's
the
way
diversification
works
when
you
put
it
all
together,
K9
has
was
down
5.2
last
year
and
C9
has
was
done.
5.9
the
average
retirement
funds
state
retirement
fund
was
down
about
10
or
a
little
more
so
being
conservative
paid
off.
F
We
get
a
roaring
Market
again
we're
going
to
lag,
but
but
we
believe
this
is
the
way
that
we
should
be
managing
2023
looks
like
the
value
added
and
that's
the
difference
between.
If
you
see
the
5.2
K9
has
in
the
index
4.8
that
that
indexes
is
derived
by
taking
the
target
allocation
for
all
those
investing
the
target
allocation
amount
in
an
index
appropriate
to
that
asset
category.
So
we
can
add
value
by
picking
better
managers
and
picking
better
Securities.
F
I'm
going
to
roll
through
what
we
call
them
Milestones
here.
This
is
part
of
why
I
say
we're
on
the
right
track.
The
the
train
is
on
the
track.
It's
moving.
It's
going
to
be
moving
faster
and
faster
and
we're
going
to
get
to
our
Target.
If
we
meet
the
assumptions,
if
we
assume
it's
five
and
a
quarter,
we
got
to
meet
that
if
we
don't
we're
going
to
fall
short
and
six
six
and
a
quarter
now,
six
and
a
half
was
the
csim.
F
F
The
pension
oversight
board
was
introduced
and
I
think
that
made
a
huge
difference,
I
think
collectively,
better
decisions
were
being
made
and
the
oversight
really
paid
off
2015
full
funding
was
was
reinstated,
big
help,
2017,
that's
where
the
board
changed
the
assumptions
I
mentioned
earlier,
but
this
is
kind
of
the
timeline
2018.
The
new
contributions
went
into
effect
on
July
1
of
2018.,
so
the
board
approved
assumptions
in
2017
in
May
and
June.
G
F
F
F
2022
we
got
to
215
million,
the
funded
status
went
from
31
to
53.
people,
talk
about
Dave,
Ramsey's
principal,
take
care
of
your
small
debts.
First,
that's
what
this
is.
This
is
a
Dave,
Ramsey
move
to
say:
State
Police
is
small
in
dollars
a
limited
amount
of
dollar
is
going
to
have
a
huge
impact
is
and
then
finally
23-24
we're
going
to
get
240
million
dollars
additional
Appropriations
each
year
and
that's
going
to
be
a
great
impact.
A
A
few
weeks
ago,
when
myself
and
Senator
Mills
was
was
talking
about
our
first
meeting.
We
thought
it
would
be
good
to
have
you
come
and
just
share
with
us
where
we're
at
and
where
we
have
been,
and
hopefully
where
we're
going
to
get
to
on
this
I
know.
We
do
have
some
questions.
Maybe
I
have
a
couple
questions,
but
I
will
go
ahead
and
first
I'm
going
to
go
to
Senator
Thayer.
Who
has
the
first
question
or
comment
Senator
Thayer
you
that
proceeds
there.
E
E
E
E
There
were
three
things
of
significance
that
came
out
of
Senate
bill.
2.
number
one:
we
removed
the
taxpayers
from
the
liability
of
paying
for
Public
Employee
pensions
while
creating
the
new
hybrid
cash
balance
plan
that
David
mentioned,
and
it
is
called
a
hybrid
cash
balance
plan
because
it
is
a
hybrid.
It
has
elements
of
both
a
defined
benefit
plan
and
a
defined
contribution
plan,
while
again
taking
the
taxpayers
off
the
hook
for
the
liability
that
David
mentioned
also
in
the
bill,
and
this
is
significant.
E
It
became
law
that
the
general
assembly
is
required
to
fully
fund
the
actuarily
recommended
contribution
to
KRS
and
now
I
guess
you
could
call
it.
The
actuarially
required
contribution
instead
of
recommended,
because
we
are
by
law
required
to
make
that
contribution,
because
there
had
been
times
throughout
history
that
we
didn't
the
general
assembly
at
the
time
didn't
make
that
contribution,
and
there
were
also
some
games
being
played
with
the
amount
of
money
that
needed
to
be
contributed.
E
And
so
we
thought
we
were
contributing
the
right
amount,
but
we
actually
weren't
and
then
the
third
thing
and
I
negotiated
this
with
Governor
Steve
beshear
in
his
office.
Just
him
and
me
was
the
creation
of
the
public
pension
oversight
board,
which
many
of
you
are
members
of
which
gives
the
general
assembly
monthly
updates
on
all
of
our
pension
systems
and
I
think
has
allowed
and
and
required
that
the
general
assembly
be
more
involved
on
a
monthly
basis.
E
At
the
time
we
had
predicted
that
we
would
be
on
a
good
trajectory,
and
here
we
are
10
years
in
and
we
are
on
a
very
good
trajectory
and
it
was.
It
was
a
major
accomplishment
for
the
general
assembly.
I
want
to
complement
former
Governor
Steve
beshear
for
working
with
us
in
a
collaborative
fashion
and
for
actually
getting
involved.
We
needed.
E
We
need
a
Democrat
and
Republican
votes
to
pass
the
bill
and
he
got
very
involved
and
used
the
power
of
the
governor's
office
to
convince
a
number
of
Democrats
to
vote
for
the
bill
so
that
we
could
achieve
passage
and
then,
of
course,
he
signed
the
bill.
It
was
a
real
Shining,
Moment
In,
the
general
assembly
and
I'm
happy
that
David
is
here
today
to
to
give
us
this
update.
E
It
is
sort
of
like
Groundhog
Day
for
those
of
us
who
have
been
around
in
a
while,
because
you
know
we
we
get
these
reports
every
year,
but
the
the
news
is
good.
We
are
headed
in
the
right
direction.
I'm
going
to
defer
to
my
colleague,
chairman
McDaniel.
Hopefully,
he'll
talk
a
little
bit
about
the
specifics
as
a
r
committee
chairman
about
the
dollars
that
have
actually
been
appropriated
because
he,
along
with
chairman
Petrie,
are
the
first
line
of
defense
to
make
sure
that
we
are
making
those
those
contributions.
E
So
I
just
wanted
to
give
a
little
history
lesson
here
as
someone
who's
used
to
chair
this
committee
and
has
been
on
it
for
a
long
long
time,
nearly
20
years.
This.
This
is
a
very
positive
story.
If
you
have
state
employees
in
your
District,
it's
a
positive
story
to
tell
them
and
to
the
taxpayers
who
fund
the
majority
of
the
Public
Employee
pensions.
E
It's
a
good
story
to
that
to
tell
them
as
well,
because
it
is
fiscally
responsible,
the
steps
that
we
took
and
continue
to
take
so
I
I
hope
that
chairman
McDaniel
is
on
the
list.
He
can
provide
much
more
detail
on
the
money,
but
the
way
we
spend
money
is
policy
for
those
of
you
who
are
new.
The
budget
is
the
biggest
policy
document
we
ever
spend
and
the
policies
when
it
comes
to
State,
Employees
and
their
retirement
have
been
very,
very
good
for
the
last
10
years.
E
A
H
Thank
you.
Thank
you,
Mr
chairman
and
the
leader
Thayer
for
his
comments.
There
Dave,
for
you
I,
think
I
think
when
you
took
the
job
as
directory.
I
was
one
of
the
first
meetings
that
you
had
in
the
general
assembly
and
I
said.
I
commend
you
for
accepting
the
job
of
the
captain
of
the
Titanic
and
you
you
did
a
much
better
job
through
the
icebergs
and
director
Chilton
I
think
that
in
one
of
our
first
meetings,
I
think
it
might
have
been
with
you
and
me
and
Governor
Bevin.
H
That
I
think
my
only
request
of
the
administration
was
please
be
honest
about
what's
actually
happening
over
at
the
pension
systems,
because
we
already
knew
that
we
had
a
problem.
But
unfortunately,
at
that
time
we
didn't
realize
how
bad
it
was
because
we
were
simply
not
getting
good
numbers
out
of
the
pension
system
and
you'll
recall
that
one
of
the
folks
who
was
on
the
board
at
the
time
I
had
been
the
Personnel
secretary
for
the
previous
governor
beshear
when
they
were
deliberately
misstating.
H
Payroll
growth
ultimately
ended
up
as
the
deputy
attorney
general
for
the
current
governor
and
is
currently
residing
the
federal
penitentiary
for
bribery,
but
he
had
been
on
there
and
helped
cook
those
books
for
many
years
and
what
we
found
when
we
got
underneath
the
hood
was
that
the
payroll
growth
assumptions
were
wrong.
The
assumed
rate
of
return
was
wrong.
H
The
additional
contributions
to
sprs
I
mean
at
this
point
tune
of
billions
of
dollars
of
of
additional
monies
on
top
of
a
redefined,
actuarily
required
or
I.
Guess
we
call
it
a
deck
now
I
even
use
old
acronyms
at
this
point.
So
whoever
thought
that
I'd
get
to
be
one
of
the
older
people
around
this
place,
but
I
am
but
I
do.
Thank
you
both
and
commend
you
both
for
your
work,
because
there
was
a
lot.
H
There
were
a
lot
of
difficult
meetings,
difficult
moments
difficult
times
in
these
hallways,
as
we
got
from
A
to
Z,
but
Dave
you'll,
recall
too
I
think
we
one
of
the
conversations
we
had
is
that
we
were
one
blip
in
the
stock
market,
away
from
total
insolvency
of
the
Pension
funds
and-
and
the
conversations
were
very
serious
at
that
point
about
if
this
goes
into
the
courts,
what
actually
is
the
inviolable
contract?
What
does
that
mean?
What
benefits
are
and
aren't
guaranteed,
and
what
does
this
mean
for
cuts
elsewhere?
H
Tax
increases
I
mean
those
were
serious
conversations
you'll
also
recall.
At
that
time
we
did
not
have
a
budget
Reserve
trust
fund,
literally,
when
director
Chilton
took
over
I
believe
that
the
dollars
in
the
account
were
somewhere
barely
north
of
zero.
We've
come
a
long
way,
but
we
come
to
a
point
where
there
might
be
some
positive
decisions
to
be
made
and
I
want
to
ask
your
opinion.
H
Obviously,
insurance
is
north
of
70
percent
funded
at
this
point,
while
the
the
indemnity
side
is,
is
certainly
found
in
the
teens
still.
Would
it
give
you
more
flexibility
with
the
Investments
on
that
side?
If
we
allow
the
trajectory
to
continue
in
health
and
try
to
apply
all
new
dollars
to
the
payroll
side
until
that
balance
gets
healthier
or
what
would
the
mechanics
of
that
look
like
or
the
decisions
there
I.
F
F
World
and
based
on
the
last
valuation,
where
we
got
a
huge
bump,
huge
bump,
based
on
medicare
premiums
and
experience
and
so
forth,
it
could
go
the
other
way
as
well.
So
that's
what
we're
cautious
about,
but
I'll,
be
entertain
a
conversation
with
you
and
pull
in
GRS
and
see
what
they
can
do
to
help
us
at
your
leisure.
We
certainly
appreciate
all
you
do.
Thank
you.
Thank
you.
Mr
chairman
Mr,
chairman,
could
I
say
a
couple
of
things.
F
He's
he
is
one
of
the
six
who
really
worked
on
Hospitality.
We
had
a
committee
of
six,
unfortunately
he's
the
only
one
that
remains
Joe,
gravis
and
and
Jerry,
Miller
and
and
so
forth,
and
it
was
a
bipartisan
committee
and
it
would
you
wouldn't
have
known
when
you
walked
in
the
room
you
wouldn't
have
known.
They
were
focusing
on,
let's
figure
out
how
to
solve
this
problem.
F
I,
like
it
I,
also
like
to
say,
I
got
a
quote
from
Warren
Buffett,
maybe
seven
or
eight
years
ago,
in
a
paper
he
said
if
I
were
a
CEO
running
a
company
I
would
not
build
anything
or
look
to
buy
anything
in
Kentucky
and
other
states
that
are
similarly
have
severe
liability
issues
in
their
retirement
plans.
I,
don't
think
you'd
say
that
today
and
I
think
as
proof
of
that
when
I
first
came
when
I
first
took
the
job,
I
got
a
call
from
Ryan
Barrow
within
a
couple
of
months.
F
He
said:
can
you
come
down
and
sit
in
on
a
on
a
conference
call
with
standard
and
poor
who's
doing
our
ratings?
They
want
an
update
and
we
had
a
number
of
those
after
that
in
May
of
this
year,
fitches
improved
the
rating
from
double
A
minus
to
double
a
on
certain
bonds
here
and
also
a
similar
move
on
other
bonds.
A
I
I
D
F
I
F
I
J
I
just
want
to
follow
up
a
little
bit
to
what
my
colleague
just
asked
for
you
you
in
your
early
beginning.
You
talked
about
the
tears
and
you
also
talked
about
the
retirees
and
you
kind
of
had
a
comment
like
the
retirees
are
are
leaving
well,
I
guess
my
question
to
you
is:
what's
the
average
age
of
the
retirees
who
are
in
the
touch
I.
F
J
Remind
you,
I'm,
a
history
teacher
and
not
a
mathematician
or
an
analyst
in
the
area,
but
when
they
retire
early,
obviously
that's
hurting
the
system,
especially
within
the
tier
one
area,
correct
by
them
or
because,
obviously,
if
they
start
retiring
at
48,
you've
got
a
longer
period
of
time
of
which
you're
paying
out
to
those
retirees.
Whereas.
G
J
F
J
F
I
F
J
K
Thank
you,
Mr
chairman
30
seconds
back
on
slide
six.
This
is
a
pretty
trivial
question
for
you,
but
there
are
three
categories
of
members
in
the
program:
I
think
it
was
slide.
Six
yeah
you
mentioned
I,
believe
active
and
active
and
retired
I.
Don't
think
you
mentioned
inactive.
Can
you
define
what
an
inactive
member
is
for
us
just.
F
K
F
L
Thank
you
Mr
chairman,
and
this
is
my
honestly
my
first
day
on
the
committee
so
I'm
going
to
ask
some
really
basic
questions
and
I'm.
Sorry
about
that.
What
is
our
average
annual
rate
of
return?
I
saw
it
broken
down
by
category
overall
average
annual
rate
of
return
for
the
last
10
years.
Where
are
we.
F
L
Five
and
a
quarter
six
and
a
half
and
we're
averaging
seven
to
eight.
Historically,
it's
a
fairly
close
margins
there,
a
little,
maybe
too
close
if
you
don't
ever
want
to
go
under
second
question
and
I'm.
Sorry,
because
I
should
know
the
answer
to
this,
but
I
have
never
honestly
been
able
to
figure
it
out
and
I
have
tried
over
and
over
again.
L
F
L
F
Let
me
liken
it
to
this:
let's
say
you
decide
you
want
to
save
for
a
child's
education
college
education
and
they
say
you
should
put
in
five
thousand
dollars
a
year
pick
a
number
five
thousand
dollars
a
year
for
the
next
20
years,
and
you
say
I,
don't
think
I
need
to
do
that.
I
could
put
in
four
thousand
dollars
a
year.
I'm
going
to
come
up
short
and
I.
Have
a
thousand
dollars
is
not
earning
money
in
my
child's
account
I've
held
back
on
that
the
same
kind
of
a
principle.
F
M
I'll
make
a
brief
so
we're
seeing
a
change
in
our
Workforce,
my
grandfather's
generation,
my
father's
generation.
They
had
one
career,
one
company,
they
may
work
from
graduation
to
retirement
at
one
place,
but
in
the
technical
field
that
I
come
from
for
a
number
of
years,
I
mean
you
work
five
to
ten
years
at
a
company
and
now
we're
seeing
this
new
generation
likes
to
move
around
their
careers.
M
They
might
work
10
to
20
years
in
one
career
field
and
change
their
entire
career
field,
because
they're
more
motivated
with
the
pension
system
we
have
now
and
as
these
demographics
change,
what
people
want
out
of
life
will
we
have
when
we
have
employees
that
aren't
here
for
their
lifetime
careers,
but
instead
of
moving
out
every
10
to
20
years?
Will
the
pension
system
accommodate
that
and
be
a
solvent.
F
A
A
N
N
The
2022
2024
biennial
budget
marks
eight
straight
years
of
full
or
very,
very
nearly
full
funding
for
the
TRS
annuity
trust
the
pension
and
that
hadn't
always
been
so
in
years.
Prior
to
the
recent
eight
years
from
2008
to
2017,
the
retirement
annuity
trust
was
not
receiving
full
funding,
so
I
can't
overstate
how
critically
and
important
significant
this
full
funding
is
for
teachers
and
I
know.
Our
teachers
are
very
thankful,
very
grateful
and
appreciative
for
this
full
funding
they've
been
receiving
over
the
last
eight
years.
N
The
Commonwealth
of
Kentucky
and
other
employers
will
make
fixed
statutory
contributions
to
TRS
or
sat
out
in
statute,
for
example,
although
we
have-
and
they
vary
a
little
bit
from
retirement
to
retirement
tier.
We
have
four
TRS
one,
two
three
and
four,
but
for
example,
TRS
one
and
two:
the
Commonwealth
contributes
a
fixed
statutory
amount
of
12.355
percent
to
the
retirement
annuity,
trust,
okay,
and
that
is
more
than
enough
to
pay
what
we
actuaries
call
normal
cost.
Okay,
normal
cost
is
simple.
N
If
we
did
not
have
this
Legacy
unfunded
liability,
how
much
money
do
we
have
to
put
away
each
year
of
teachers
career
that
with
investment
income
will
pay
for
the
benefits
that
they
earn?
Okay,
that's
the
basic
formula
and,
with
this
12.355,
for
example,
on
TRS
one
to
two
we're
getting
more
than
we
need
for
normal
cost.
Normal
cost
is
about
half
of
that
so
where's,
the
rest
of
this
going
well.
The
rest
of
that
12.355
is
going
towards
paying
off
his
legacy.
Unfunded
liability.
But
it's
not
enough.
N
It's
not
enough
to
implement
our
funding
plan
to
pay
off
this
Legacy
unfunded
liability
over
a
30-year
period
like
paying
off
a
home
mortgage,
at
which
point
we
will
be
a
hundred
percent
funded
and
the
cause
for
the
Commonwealth
will
drop
dramatically,
and
we
have
some
slides
later
on
we'll
go
into
some
more
detail
about
that.
But
anyway,
that's
that's
what
we're
trying
to
do
with
this
1.28
billion?
That's
what
we
need!
That's
why
we
need
is
1.28
billion
dollars
in
additional
funding.
Over
and
above
that,
fixed
statutory
amount.
N
We
need
that
to
be
able
to
pay
off
this
Legacy
unfunded
liability.
There's
more
good
news
here
and
then
that's
the
third
bullet
point.
This
vinyl
budget
also
provides
the
149
million
dollars,
which
is
the
full
amount
for
the
state
share
towards
health
insurance
for
retired
teachers.
Under
the
share
responsibility
plan
and
I'll
explain
that
just
very
quickly,
because
I
know
we
do
have
some
new
members
before
2010
retired
teachers,
health
insurance
was
funded
on
a
pay-as-you-go
basis.
Dollars
in
dollars
out
have
a
slide
we'll
show.
N
There's
a
short-term
solution
to
keep
it
going
and
that
was
reallocating
some
of
the
contributions
that
would
have
gone
to
the
pension
trust
over
into
the
health
insurance
trust
instead
just
enough
to
pay
for
those
two
years
of
health
insurance
benefits,
the
Commonwealth
was
paying
that
money
back
on
installment
basis,
10-year
basis
with
interest,
but
they
were
stacking
up
debt.
We
were
digging
a
hole
in
the
pension
fund.
We
knew
something
had
to
change
the
tiers
Board
of
Trustees
directed
staff
to
start
meeting
with
stakeholder
groups
a
year
and
a
half
before
in
advance.
N
N
Active
teachers
began
paying
three
percent
out
of
their
paycheck
into
the
health
insurance
trust
school
districts,
matched
that
three
percent
retired
teachers
under
the
age
of
65
began,
paying
an
amount
towards
the
cost
of
their
premium
costs
from
the
Kentucky
employee's
health
plan
equal
to
the
Medicare
Part
B
premium,
and
the
state
which
been
voluntarily
paying
for
almost
all
of
it,
picked
up
the
cost
of
new
retirees
under
the
age
of
65.
Less.
N
What
those
new
retirees
paid
so
in
today's
dollars,
a
standard
plan
offered
by
the
Kentucky
employees,
health
plan
kehp
a
little
over
700
a
month.
The
retiree
pays
about
230
dollars
of
that
cost
and
the
state
pays
the
rest.
So
that
has
been
a
very,
very,
very
successful
piece
of
legislation
and
I've
got
some
slides
that
will
show
how
successful
it
is
coming
up
here
very
shortly.
Also
in
this
budget
there
was
a
unique
appropriation
of
479.2
million
dollars
to
pay
pay
off
the
liabilities
for
certain
benefit
adjustment
that
it
made
in
the
past.
N
There
had
not
been
any
old
ad
hoc
or
not
any
ad
hoc
cost
of
living
adjustments
since
2008,
but
because
the
Commonwealth
was
paying
for
those
on
a
20-year
amortized
basis,
we
were
still
receiving
payments.
You
know
on
these
old
colas
so
anyway,
during
the
2022
session,
the
policy
decision
was
made
just
to
pay
off
these
liabilities
completely
in
one
lump
sum:
that's
the
479.2
million
dollars
and
that
money
was
received
at
a
very
good
time
in
a
down
market
and
it's
been
put
to
good
use.
N
Some
of
these
slides
I'll
go
over
much
more
quickly,
Mr
chair.
So
this
is
our
field
of
membership,
we're
primarily
a
school
teacher
retirement
system.
We
have
171
school
districts,
they
compromise
the
majority
of
our
membership.
We
also
have
five
universities
in
our
field
of
membership:
eastern
western
Murray,
more
heading
Kentucky,
state
universities.
We
have
some
State
education
agencies
in
kctcs,
but
primarily
we
are
local
school
districts.
N
N
In
fact,
Social
Security
in
1935
did
not
bring
in
state
or
Municipal
public
employees,
okay,
and
so
that's
from
the
coming
from
Kentucky
said
well
we're
going
to
provide
our
own
State
retirement
plan
for
teachers,
that's
outside
of
Social
Security,
and
we
opened
our
doors
for
business
in
1940
and
been
serving
teachers
since
then
in
the
1950s.
Just
a
little
more
background
on
this
federal
government
changed
its
mind
and
said:
okay,
we're
going
to
let
States
and
municipalities
bring
in
their
public
employees
it's
optional.
N
So
many
did,
but
many
did
not.
So
you
have
a
lot
of
States
out
there
that
still
do
not
participate
in
Social
Security
for
public
employees
as
a
republican.
It's
a
social
security
placement
plan
in
almost
every
state.
If
not
all
states
have
some
employees
within
its
borders
who
do
not
participate
in
Social
Security,
for
example,
Municipal,
Police
and
Fire.
You
know
departments
a
lot
did
not
participate
in
Social
Security
and
in
the
1950s,
when
Kentucky
had
the
option
to
put
teachers
in
Social
Security
the
stated
reasons
for
not
doing
it
was
too
costly.
N
It
was
going
to
be
too
costly
to
put
them
in
Social
Security
and
it's
been
a
while
since
I've
seen
it,
but
there
was
an
lrc,
a
subsequent
lrc
report,
a
study
done
looking
into
putting
teachers
in
Social,
Security
I
think
it
dates
back
from
the
1980s
and
it's
been
a
while
since
I've
seen
apologize,
but
it
came
to
the
same
conclusion.
It
was
just
too
expensive
to
move
teachers
into
Social
Security.
N
So
as
a
social
security
replacement
plan,
you
know
the
goal
was
to
being
able
to
provide
our
teachers
with
a
pension
that
they
can
retry
on.
You
know
and
and
have
a
meaningful
lifestyle,
and
it's
intend
to
do
so
without
having
any
kind
of
Social
Security.
You
know
on
the
members
behalf
or
from
the
member
spouse
as
a
Survivor
benefit.
It's
a
standalone
benefit
with
whatever
savings
they
are
able
to
put
aside
along
the
way
current
contributions,
as
I
noted
earlier,
they
are
enough
to
pay
for
this
benefit.
It
is
being
well
funded.
N
We
are
in
a
great
position
right
now
and
we're
very
thankful
for
that,
and
they
get
health
insurance.
You
know
benefits
too,
and
they
can
get
that
upon
retirement,
but
I
will
say
before
moving
from
this
slide,
that
decision
by
the
common
Kentucky
in
the
1950s
was
a
really
smart
decision.
It
was
a
great
deal
for
teachers,
it
was
a
great
deal
for
the
Commonwealth
and
they
didn't
have
a
good
retirement
system.
N
That
is
a
there's,
a
good
cause
for
the
for
the
for
Kentucky
Social
Security
I'll
be
try
to
be
brief
about
this.
It
wasn't
originally
intended
to
be
a
sole
source
of
retirement
income
as
more
of
an
social
anti-poverty
program,
and
you
know
to
be
supplemented
with
either
a
pension
or
some
kind
of
savings
account
like
a
401k
account.
The
contributions
currently
going
to
Social
Security,
which
is
6.2
percent
employer
and
member
after
tax,
is
not
enough,
and
that
comes
from
the
Social
Security
Administration.
That's
something
we've
all
heard.
N
N
Although
we
are
at
Social
Security
replacement
plan,
I
will
point
out.
We
do
have
some
members
who
are
in
Social
Security,
most
aren't
so.
The
top
part
you'll
see
are
non-university
members
about
95
percent
of
our
membership.
Do
not
pay
into
or
receive
Social
Security.
So
TRS
is
a
complete
replacement
for
Social
Security,
our
University
members,
those
five
universities
I
mentioned
they
do
pay
into
Social
Security.
They
pay
in
a
lesser
contribution
rate.
Their
benefits
are
less
so
for
TR,
for
TRS
is
meant
to
supplement
their
social
security,
not
replace
their
social
security.
N
So
it's
a
very
different
benefit
form.
It
was
because
of
that
and
I
will
just
know.
The
universities
also
have
an
option
since
1994
their
employees
have
the
option
to
either
be
in
TRS
or
to
be
in
what
they
call
the
optional
retirement
plan,
which
is
like
a
savings
account
457
account.
You
know,
like
a
401k
style,
account
very
quickly.
We
had
11
member
Board
of
Trustees.
These
are
our
members
on
our
Board
of
Trustees
and
the
next
slide
we'll
go
into
a
little
more
detail
about
who
they
are.
N
So
we
seven,
those
11
members
you
saw
on
the
preceding
page,
are
elected
by
the
TRS
membership.
They
get
to
vote
every
year
and
we
just
had
an
election.
Four
of
those
members
are
active.
For
those
trustees
are
active
members.
They
can
be
teachers
or
administrators,
they
can
be
a
University,
employee
and
they've
been
all
the
above.
One
has
to
be
a
retired.
N
Also,
the
treasurer
serves
on
our
Board
of
Trustees
by
as
an
ex-officio
member,
and
then
the
education
commissioner
also
serves
on
our
Board
of
of
Trustees
by
Statute
and
then
as
a
result
of
some
more
recent
legislation,
because
we
used
to
just
have
nine
trustees
when
I
started
the
system
in
1999,
but
more
recent
regulation.
We
added
two
new
members
by
law
that
are
required
to
have
Financial
experiences
defined
by
Statute.
N
Those
two
members
are
appointed
by
the
governor
and
subject
to
Senate
confirmation,
so
we
have
11
members
and
and
four
of
those
definitely
have
financial
backgrounds
and
they're,
not
the
only
people
with
financial
backgrounds
that
have
a
role
in
our
committees.
We
have
two
outside
experts,
for
example
out
of
state
experts,
nationally
recognized
experts
who
serve
as
non-voting
members
or
investment
committee
and
attend
every
investment
committee
meeting,
and
then
also
all
these
funds
that
our
trustees
hold.
N
They
are
fiduciaries
like
staff,
we
are
fiduciaries
and
that
has
a
that's
not
just
a
noun
to
where
it
has
real
legal
meaning,
and
that
means
our
only
interest
is
the
best
interest
of
the
member
and
no
other
interest.
We
serve
as
fiduciaries,
and
it's
just
for
the
interest
of
our
members.
So
real
quickly,
I've
been
asked
to
talk
about
the
tier
types.
N
We
have
four
TRS,
as
I
mentioned
earlier,
TRS
one
two
three
and
four,
and
you
can
see
the
entry
dates
and
timelines
for
those
different
TRS
plant
types
in
next
slide
or
two
is
going
to
go
in
a
little
more
detail
about
those
different
tiers.
Here's,
the
active
membership
and
those
different
tiers.
You
can
see
for
the
non-university
on
the
left
hand,
side
the
Bold
numbers
at
the
bottom.
We
have
71
804,
nine
University
active
members
on
the
right
side.
You
can
see
we
have
2981
active
University
members.
N
One
more
number
I
will
note
here
is
that
that
latest
here
trs4
that
I
showed
you
in
the
previous
page.
That's
new,
okay,
that
just
started
for
people
who
become
members
of
TRS,
the
first
time
on
or
after
January
1st
2022.
So
it's
brand
new
just
over
a
year
old
and
you'll,
see
on
the
bottom
left
side.
Just
looking
at
the
non-university
sides
and
just
above
the
Bold
number,
the
71804.
We
already
have
1543
new
members
in
trs4,
so
it's
growing
well
as
anticipated.
N
Here's
a
breakdown
on
a
new
attention
beneficiary,
so
that
top
number
are
our
TRS
members
who
have
retired
with
a
retirement
allowance,
53
761,
and
then
we
have
beneficiaries
4
677.,
so
the
beneficiaries
can
be
either.
If
the
member,
when
the
member
retires,
they
can
take
a
lower
retirement
allowance,
a
lowered,
actuator
overtime
allowance
to
provide
a
joint
and
Survivor
annuity
to
their
spouse.
You
know,
for
example,
so
that's
part
of
this
number
and
then
also
there
are
some
death
benefits
for
deaths
of
members
who
are
deaf
as
active
members
who
die
while
teaching.
N
Here's
a
recap
on
the
Actuarial
status
for
the
retirement
annuity
Trust
in
assets
of
24.1
million,
as
of
June
30th
2022.
That's
our
latest
financial
report,
liabilities
of
41
billion
dollars,
unfunded
16.9
billion
dollars
down
slightly
from
the
previous
year,
2021
of
17
billion,
a
funded
ratio
of
58.8
percent
for
the
retirement
annuity,
trust,
it's
and
that's
the
highest.
It's
been
in
several
years,
we've
kind
of
hovered
in
the
mid
to
lower
50s
in
recent
years,
but
we're
at
our
highest
level
and
again
we're
pointed
in
the
right
direction.
N
As
you
go
dollars
in
dollars
out,
you
can
see
funded
levels
of
2.9
3.5
that
was
about
three
months
worth
of
cash
assets
or
three
months
worth
of
premiums
and
cash
assets,
and
we
had
the
legislation
in
2010.
You
can
see
how
strongly
the
funded
status
of
the
health
insurance
trust
has
grown
very
quickly.
N
This
is
great
news.
I
will
point
out
just
in
case
someone
notices,
2021
dips
slightly
from
61.7
percent
the
previous
year
to
60
in
2021.
The
reason
for
that
we
study
our
Actuarial
assumptions.
Investment
rate
return
mortality
all
that
every
single
year
and
make
adjustments.
So
our
budget
request
based
on
that
annual
review,
but
every
five
years
the
independent
actuary
does
a
really
deep
dive
and
they
do
something.
N
I
won't
go
into
all
the
details
because
of
time
they
do
something
called
an
experienced
study,
and
that
is
a
time
when
they
make
changes
to
those
assumptions
and
we
had
our
last
five
year.
Experience
study
for
the
five-year
period,
ending
June,
30th
2020
and
they
lowered
investment
rate
of
return
for
the
retirement,
annuity,
trust
and
the
health
insurance
trust,
and
they
also
raise
mortality
to
a
teacher-specific
mortality
table.
Those
increased
liabilities.
N
Okay-
and
that's
why
you
see
a
one-year
decline
from
61.7
percent
in
2020
to
60
percent
2021
to
reflect
the
first
year
that
those
experienced
study
could
be
implemented.
Then
we
bounced
right
back
up
to
63.7
percent
in
2022,
and
funding
for
health
insurance
is
subject
to
a
lot
more
variables
than
the
retirement
annuity
trust
the
pension,
we're
dependent
on
medical
inflation,
I
mean
that's
a
big
factor.
N
There
are
federal
subsidies
that
we
get
Federal
programs
we're
depending
on
those
staying
in
place,
and
they
have
stayed
in
place
and
we
anticipate
they
will
but
they're
they're
more
variables.
But
if
inflation
stays
about
medical
inflation
stays
about
where
it's
been
of
those
Federal
programs
and
those
subsidies
still
are
provided
in
coming
years,
this
health
insurance
trust
will
be
100
funded
in
a
few
short
years.
N
N
Contributions
to
this
is
to
the
retirement
annuity
trust.
Well,
this
is
all
contributions,
all
funds,
so
you
can
see.
2022
is
1.57
billion
dollars.
That's
an
anomaly
because
it
includes
that
479
million
dollar
one-time
payment
I
talked
about
earlier
to
pay
off
all
those
past
benefit
adjustments
that
just
happens
once
you
know,
but
you'll
see
below
that
2021
through
2017.,
so
a
fairly
consistent
numbers,
those
will
continue
to
grow,
but
you
2017
1.06
billion
2020
1.1.14
billion,
and
then
you
see
2016
and
2015..
N
N
This
is
a
slide.
There's
a
lot
going
on
here,
but
it's
pretty
explainable.
This
shows
what
happens
as
we
continue
to
receive
those
contributions
over
a
30-year
period.
7.1
percent
rate
of
return,
the
top
box,
shows
the
dark
blue
line.
Is
the
funded
ratio
again
58.8
percent
last
June
30th,
the
sort
of
Gold
Line
is
unfunded
liabilities
against
16.9
billion
dollars,
June
30th
2022
and
you
can
see
as
funding
continues
and
let
me
before
I
get
into
that
the
lighter
color
lines
above
and
below
the
boat
lines.
N
Those
are
kind
of
the
sensitive,
sensitive
sensitivity.
Analysis
example
showing
that
if,
instead
of
7.1
percent,
what
have
we
got
8.1
percent?
What
would
that
look
like
or
what
was
6.1
percent
return?
What
would
that
look
like
okay?
So
it
gives
you
sort
of
a
range
of
you
know
what
that
could
look
like,
but
you
can
see
right
now,
2025
and
we
start
growing
the
funded
ratio
pretty
quickly
in
a
few
years
and
the
liabilities
start
getting
paid
off
relatively
more
quickly
in
just
a
few
years.
N
The
bottom
chart
here
shows
a
required
contributions
of
the
Commonwealth
of
Kentucky,
and
you
can
see
we
continue
those
out
until
we
get
to
a
hundred
percent
funded
and
you
see
they
dropped
dramatically
and
that
reflects
the
true
cost
of
TRS.
Once
it's
unfunded,
there's
a
legacy.
Unfunded
liability
is
addressed
and
that's
been.
The
whole
issue
that
the
TRS
has
been
facing
is
addressing
this
Legacy
and
fund
of
liability
a
lot
of
numbers
here,
but
these
were
asked
to
provide
30-year
projections
on
on
cost
to
the
state
to
continuity.
Trust.
N
N
The
actuary
could
recommend
to
the
general
assembly
that
contributions
made
by
school
districts
acted
for,
retired
teachers
could
be
suspended
or
reduced,
but
that
will
be
a
policy
decision
by
the
general
assembly
common
for
Kentucky
when
we
become
100
funded
about
what
to
do,
we
don't
know
what
the
Commonwealth
of
Kentucky
is
going
to
do.
So
we
didn't
make
any
assumptions.
We
just
kept
the
statutory
contributions
in
place
here.
So
that's
what
you
see,
but
these
contributions
you
see
on
the
right
hand,
side
will
and
before
we
even
get
to
the
right
hand.
N
Side
are
going
to
be
more
than
enough
to
pay.
The
normal
cost
of
retired
teachers,
health
insurance,
the
cost,
will
be
less
than
what
you're
seeing
even
here,
payable
by
the
employer
in
those
years,
investment
returns.
I
always
emphasize
tiaris
is
a
long-term
investor.
We
we
worry
about
each
quarter,
but
when
we
know
that
we're
going
to
have
bad
quarters
we're
going
to
have
bad
years,
we
may
have
bad
two
years.
N
Markets
go
up,
markets
go
down,
we
can
make
money
in
down
markets
because
we,
when
markets
are
up,
we
sell,
we
put
move
money
to
cash
or
bonds,
and
then,
when
markets
go
down
decline
we
buy.
So
it's
just
that
old
adage
we
sell
when
markets
are
high,
we
buy
when
markets
are
low,
so
you'd
say
as
a
long-term
investor.
Trs
has
done
very
well.
The
bottom
row
here
are
the
net
investment
returns
after
we
pay
all
investment
expenses,
TRS
has
among
the
lowest
investment
expenses
in
the
nation.
N
N
Returns
for
the
health
insurance
trust,
you
can
see
up
again
at
bottom.
The
net
returns
for
the
health,
insurance,
trust
and
I'll
answer
any
questions
afterwards
about
any
of
these
slides
be
glad
to
do
that.
Getting
through
this
in
about
12
30.
Let's
see
move
on
to
asset
allocation,
mostly
we're
in
public
equities.
You
know
about
80
percent
of
our
investments
are
in
publicly
traded
Investments.
N
N
We
have
a
range
of
32
to
48
that
we
want
to
stay
in
with
domestic
Equity,
but
the
target's
40
and
from
within
that
range
we're
fine
and
that's
going
to
change
constantly,
because
the
stock
market
goes
up
and
down
and
the
stocks
can
be
outweighed
or
underweighted
as
a
percentage
of
your
total
portfolio,
depending
on
how
the
markets
move.
International,
Equity
the
second
largest
category
I'll
note
here
again
International
stocks
and
then
we
also
have
real
estate
fixed
income.
You
know
bonds
and
some
other
categories
there.
N
Health
insurance
trust
a
little
different
asset
allocation.
We
don't
have
this
broken
down
between
in
domestic
and
international
Equity,
but
total
Equity
is
55
percent
not
too
far
off
from
what
we
had
in
retirement.
Annuity
trust
asset
allocations
a
little
different
between
these
trust.
One
health
insurance
trust
is
a
new
trust.
It
got
established
in
2010.
We
actually
started
pre-funding,
retiree
health
insurance.
So
it's
a
newer,
growing
trust
fund.
It
will
continue
to
change
over
the
years.
It'll
start
to
look
a
little
bit
more
like
the
retirement
annuity
trust.
N
There's
a
lot
here,
I'm
just
going
to
point
out
a
few
differences.
I
only
have
TRS
three
or
four
noted
here,
but
I
will
note
that
tiers
one
two
and
three
are
very,
very
similar,
they're
all
pension,
okay,
TRS,
two
and
three-
the
factors
change
a
little
bit.
You
have
to
work
longer
to
get
the
same
benefit
as
trs1
health,
insurance
and
trs3
is
not
available.
N
Access
to
health
insurance
is
not
available
until
you
have
at
least
15
years
of
service
versus
some
measure
of
payment,
not
big,
but
some
measure
it
with
five
years
of
service
or
TRS
one
or
two.
But
the
big
difference
between
TRS
one,
two
and
three
is
that
the
big
biggest
difference
is
not
between
those
but
between
those
and
TR
is
four
trs4
is
a
huge
change.
Okay
and
the
biggest
difference
is
there
are
a
lot
of
differences
between
TRS
one
through
three
and
trs4s.
Trs4
is
a
hybrid
plan.
It's
part
pension.
N
It's
part
savings
account
so
they're
going
to
have
both.
Okay,
also,
the
TRS
one
through
three
teachers
can
retire
at
any
age
of
27
years
of
service.
Trs4
requires
a
minimum
age
of
57.
before
a
teacher
can
retire
significant
change,
but
the
most
significant
change
between
trs4
and
one
to
three
is
on
this
page
on
this
slide,
and
that
is
that
under
trs-4,
the
come
of
Kentucky
there's
no
responsibility
for
any
unfunded
liability
that
might
develop
in
this
tier
is
very
well
funded.
N
Our
actuaries
don't
anticipate
there
to
be
any
unfunded
liability
in
the
future
near
future
or
long-term
future,
but
if,
for
some
reason
something
unusual
happens
in
some
kind
of
unfunded,
liability
does
develop,
and
if
that
unfunded
liability
drops,
the
funded
level
of
the
trs-4
benefit.
I'll
note
here
that
all
the
dollars
coming
in
here
it's
one
through
three
four
they're
mixed
they're
invested
together.
So
we're
not
changing
our
investment
strategy
with
these
dollars.
N
We
get
actually
ask
that
a
lot
we're
continuing
to
invest
in
the
same,
but
we
were
accounting
for
them
separately
from
an
Actuarial
perspective.
So
we're
going
to
know
what
the
funded
status
of
trs4
is
separate
along
from
TRS
one
to
three,
and
if
that
funding
level
drops
below
90
percent,
the
statute
says
the
TRS
Board
of
Trustees
has
to
make
changes
to
get
that
funding
level
back
up
and
the
Board
of
Trustees
under
the
statute
may
make
changes
even
before
it
gets
to
90
percent.
You
know
it
starts
getting
like
to
95
percent
98.
N
They
can
start
making
changes
then,
and
I'll
just
go
over
a
few
of
these
really
quickly.
But
this
is
really
significant.
I
mean,
and
we've
already
got.
You
know
over
1500
members
in
this
tier
they'll
grow
every
year
and
that
the
exposure
liability
decreases
every
year
for
the
Commonwealth.
But
the
first
is
I
said
this.
Trs4
is
very
well
funded,
we're
getting
more
than
normal
cost
in
it
right
now.
N
So
at
some
point
soon
after
we
get
another
year
or
so
experience
with
this,
he
actually
will
start
recommending
that
some
of
these
contributions
in
the
trs-4
in
the
in
the
pension
side
start
being
going
into
a
stabilization.
Reserve
account
also
created
by
Statute,
and
this
is
kind
of
like
a
rainy
day
fund.
It
just
goes
over
there
and
then
that
money
will
grow
in
the
stabilization
Reserve
fund.
So
if
we
do
go
to
98
percent,
the
board
could
take
money
from
that
rainy
day
fund
and
put
it
in
the
pension
side.
N
Also
under
the
statute.
If
this
stabilization
Reserve
fund
gets
really
well
funded,
excess
dollars
could
be
applied
to
the
Legacy
unfunded
liability
for
TRS
one
to
three.
Okay,
also,
there's
other
measures
the
board
can
take
and
changing
the
retirement
benefits,
including
cost
of
living
adjustments,
but
you
know
they
could
also
lower
or
reduce
or
suspend
contributions
to
that
savings
account.
That's
two
percent
by
the
employer,
two
percent
by
the
employee.
They
could,
for
example,
okay.
We've
dropped
a
95
percent.
N
Let's
take
the
one:
let's
drop
the
employee
and
employer
contributions
to
the
savings
account
from
two
percent
to
one
percent,
we'll
do
that
for
three
years,
get
back
up,
100,
funded
and
move
on,
so
these
reactions
the
board
has
to
take.
They
have
no
discretion,
and
this
is
the
most
again
the
most
significant
thing
about.
Trs4
is
the
liability
that
we
talk
about.
That's
been
walled
off
of
the
Commonwealth
of
this,
this
new
tier
of
members
trs4,
so
those
are
my
slides
and
more
than
happy
to
take
any
questions
this
afternoon.
A
N
N
O
I
think
it
was
reflected,
maybe
in
another
slide
as
well,
but
you
said
the
last
eight
years
the
general
assembly
has
provided
additional
Appropriations
to
satisfy
some
leg
grade
Legacy
debt.
Is
that
correct,
that's,
correct?
Okay!
Does
that
happen
to
cause
coincide
with
the
the
date
that
the
Republicans
took
control
of
both
houses
of
the
general
assembly,
I
I
apologize.
N
G
Yes,
so
my
question
is
about
you
know
we
have
this
teacher
shortage
and
retired
teachers
are
sometimes
the
most
knowledgeable
people
to
try
to
pull
back
in
the
classroom.
What
is
the
impact
for
the
retired
teachers
on
their
retirement
of
going
back
into
the
classroom?
Is
there
an
impact
on
their
colas
that
they
may
have
set
in
place?
How
does
that
impact
a
retired
teacher
if
they're
listening
in
what
would
they
have
to
consider.
N
Well,
for
our
retired
teachers
who
are
considering
returning
to
the
classroom,
the
first
thing
I'll
tell
them
is:
please
call
TRS
and
make
sure
you
understand
all
the
return
to
work
Provisions,
because
there
are
several
they
are
subject
to
an
earnings
limitation.
There
are
certain
rules
about
breaks
and
service.
These
are
required
by
federal
law.
To
show
that
there's
a
bona
fide
retirement
there
can
be
no
pre-arranged
agreement
between
the
retiring
teacher
and
the
employer
to
come
back
again.
That
would
be
a
violation
of
federal
law.
N
So
there's
a
lot
of
things
for
them
to
be
aware
of
that
really
I,
probably
couldn't
cover
completely
thoroughly
before
this
board,
so
I
would
advise
them
to
call
the
retirement
system
first,
but
it
works
well.
We
do
have
retiring
teachers
come
back
in
the
classroom
overwhelmingly,
they
come
back
and
part-time
teachers
as
part-time
teachers.
They
are
not
coming
back
as
full-time
all
very
few
people
teach
retired
teachers
come
back
full
time.
G
M
Thank
you
again
again,
following
up
on
this
teacher
shortage,
I
hadn't
realized
that
the
University
teachers
were
in
Social,
Security
and
I
have
a
constituent
that
actually
from
one
of
these
Northern
Democrats,
there's
a
lot
of
outposts
from
the
northern
Democrat
States
down.
Here
he
has
almost
20
years
in
a
northern
states
teaching
system
and
he
comes
to
Kentucky
and
he
loves
teaching
here
because
he
doesn't
have
to
teach
the
woke
BS
that
he's
required
to
teach
there.
M
He
can
teach
according
to
his
conscience,
but
he
has
got
almost
20
years
in
a
teaching
system
that
is
in
Social
Security.
He
took
quite
a
pay
cut
to
come
here
because
he
really
likes
teaching
high
school
literature
and
he's
a
great
teacher,
but
he
almost
might
have
to
move
out
because
there's
just
a
total
mismatch
between
that.
M
M
N
Several
questions
there
good
questions
I,
would
respond.
The
way
I
did
to
representative
bojanowski
that
first
I
would
advise
this
person
to
contact
TRS
understand
exactly
you
know
what
benefits
he
is
getting
from
TRS
it's
a
social
security
replacement
plan.
We
offer
higher
benefits
than
what
is
offered
by,
for
example,
the
universities
who
participate
in
Social
Security.
N
So
we
do
hear
this
question
a
lot
and
lots
of
times
the
individual
that
is
impacted
or
thinks
they're
impacted
when
they
reach
out
to
TRS
and
it
depends
on
individual
circumstances,
but
when
they
look
at
their
individual
circumstances.
They're,
like
you
know
what
this
is.
Not
the
impact
I
thought
it
was.
N
We
hear
about
that
a
lot
because
there's
also
an
offset
if
you
have
just
Social
Security
earnings
or
you're,
not
in
a
social
security
placement
plan
like
TRS,
but
I
I,
advise
them
very
strongly
reach
out
to
TRS,
explain
how
long
you
intended
to
teach.
You
know
look
at
what
your
projections
might
be
at
this
point.
N
If
you
continue
in
TRS-
and
he
might
be
very
well
surprised,
because
that
often
I
often
hear
that
now
as
far
as
people
coming
in
to
TRS
membership
and
which
system
you
serve
in
the
Social
Security
replacement
plan
or
non-social
character,
placement
plan
are
very
clearly
defined
by
Statute.
So
if
you
have
someone
coming
into
a
school
district
and
in
their
position
requiring
a
four-year
degree
or
certification,
then
they're
going
to
have
to
be
in
the
TRS
Social
Security
replacement
plan.
N
There
will
not
be
any
option
under
the
statutes
for
them
to
participate
in
the
University
side.
Same
thing
with
the
university
side.
If
you
work
for
one
of
the
five
universities
you're
going
to
have
to
be
in
that
Social
Security
plan,
so
lesser
of
TRS
benefit,
though
I
mean
you
know
it's
a
lot
lesser,
but
you're
going
to
be
in
that
side
and
I'm.
Sorry.
Does
that
answer
your
question.
C
M
N
Note
you
can
see
that
issue
on
the
flip
side
too,
and
that
we
have
non-social
security
participating
states
that
border
Kentucky,
for
example,
Ohio.
You
know
their
teachers
don't
participate
in
Social
Security
either.
So
for
those
folks
moving
in
the
transition,
you
know
they
they
probably
don't
want
to
start
in
Social
Security,
because
you
know
Social
Security.
You
have
to
have
10
years
of
substantial
earnings
to
draw
any
benefit.
N
I
Just
quickly,
you
know
Bo.
This
is
a
good
report.
Thank
you
for
this,
but
you
know
when
you:
when
the,
when
the
board
slide
came
up
there
and
you
said
fiduciary
and
you
made
an
emphasis
on
fiduciary
and
I,
take
it
as
meaning
they
take
their
job
serious
and
protecting
the
funds
and
what
what
their
job
description
is.
I
We
that
that
fund
was
not
up
to
par.
It
was
not
being
funded
properly,
yet
that
board
kept
giving
teacher
raises
every
year
and
no
matter
whose
fault
it
was
that
that
that
that
that
fund
was
not
being
fulfilled,
that
board
still
had
a
fiduciary
and
I
know.
You'll
disagree
with
me
and
there
may
be
a
law
to
this,
but
still
the
word
fiduciary.
You
made
an
emphasis
on
it
and
that's
why
I
even
brought
it
up.
I
They
were
not
protecting
that
fund
when
they
were
giving
out
teacher
raises
all
during
that
time,
in
my
opinion,
because
I
remember
discussing
it
with
them,
it's
like.
Are
you
going
to
let
this
this
fund
go
all
the
way
to
zero?
Is
that
fiduciary?
Is
that
a
good
fiduciary
move
just
give
me
your
opinion
on
that?
Yes,.
N
Sir
glad
you
asked
that
yeah,
so
they
are
board
members
or
fiduciaries
staff
are
fiduciaries
every
year,
I
give
a
training
class
on
what
it
means
to
be
a
fiduciary,
an
Ethics
codes
for
our
board
and
staff.
So
from
2008
to
2017
and
TRS
continue
to
make
the
full
budget
request
every
single
year
the
budgets
were
not
providing
the
full
budget
request
every
single
year
until
2017
we
got
99
of
the
full
budget
request,
so
there
is
a
statutory
by
teachers.
Races,
you
mean
the
Colo
cost
of
living
adjustment.
N
N
On
it,
no,
it's
not
only
one
half
half
percent,
it's
required
by
law.
It
is
and
part
of
the
contributions
made
by
teachers
go
towards
that
one
and
a
half
percent
Cola,
so
part
of
their
total
contribution
and
the
state's
contribution
to
TRS
is
to
pre-fund
that
one
and
a
half
percent.
Now
those
old
ad
hoc,
colas
I,
talked
about
that
we
haven't
had
since
2000
0008.
When
funding
was
better,
we
would
make
requests
and
we
had
the
one
and
a
half
percent
I
should
know,
because
we
are
a
social
security
replacement
plan.
N
Social
Security
provides
colas,
you
know,
he's
provided
a
big
one.
The
security
provides
colas
that
try
to
keep
Pace
with
inflation.
So
that's
why
we
have
the
one
and
a
half
percent,
but
in
Prior
years
and
budgets
were
better.
We
would
ask
for
additional
funding
to
provide
a
cost
of
living
adjustment.
Over
and
above
that,
one
and
a
half
percent
to
keep
track
with
inflation
hasn't
happened
since
2008,
but
once
that
funding
no
longer
became
available,
the
board
did
not
provide
any
unfunded
colas.
They
stopped
immediately.
N
They
have
to
give
the
one
and
a
half
percent.
The
statute
gives
them
no
stats,
no
discretion
so
that
they
did
everything
that
they
could
under
the
circumstances
and
they've
always
been
very
responsible,
I
mean
they
have
I'm
very
proud
of
our
board.
They've
done
an
excellent
job
in
managing
the
system,
I
mean
bringing
shared
responsibility.
You
know
in
2010
that
turned
around
health
insurance
and
reduced
the
state's
costs
from
almost
all
the
costs.
N
N
We
had
an
active
program
of
seeking
funding
requests.
We
even
suggested
some
alternate
ideas
about
how
to
provide
funding
and
step
into
full
funding.
That
happened
a
lot
around
1516
and
and
before
we
got
the
full
funding
of
17.
There
are
a
lot
of
meetings
and
discussions
here
about
using
dollars
and
allocating
dollars
to
you
know
different
ways
to
try
to
provide
funding
and
those
were
explored.
They
were
taken
seriously.
There
were
even
a
couple
of
bills
filed,
but
none
advance
to
address
the
issue
really
until
the
20s,
the
budget
for
the
2017
fiscal
year.
A
P
Thank
you,
Mr
chairman,
oh
no,
been
in
the
general
assembly
for
seven
years
and
one
of
the
things
that
I
think
I'm
going
to
look
back
on
when
I
leave.
Whenever
that
is,
is
I'm.
One
of
the
things
I'll
be
most
proud
of
is
what
we've
done
in
the
teacher
retirement
and
in
the
state
worker
and
County
worker
retirement
in
2016
2017,
it's
not,
and
before
it's
not
an
overstatement
to
say
that
the
pensions
of
our
state
workers,
including
our
teachers,
were
in
Jeopardy.
P
They
were
going
down
and
down
and
down
and
down
and
now
they've
been
properly
funded,
and
it's
not
just
the
major
contributions
that
have
been
made
that
Mr
Barnes,
you
and
Mr
eager
have
have
identified
today,
and
thank
you
for
that.
It's
also
that
we've
actually
been
disciplined
and
realistic
in
our
investment
assumptions
and
our
mortality
assumptions
and
other
things
that
we
had
to
get
under
control,
which
we
were
playing
games
with
before
not
casting
aspersions
on
anyone
I'm
just
just
calling
it
straight,
and
so
those
things
are
important.
Those
things
are
important.
P
Why
look?
My
mother
and
father-in-law
are
both
teachers.
My
wife
is
a
teacher.
There
are
state
workers
that
are
in
my
family
and
their
retirements
are,
they
are
solid.
They
can
rely
on
them.
They
can
know
that
when
they
retire
they're
going
to
be
there
and
that's-
and
it's
because
largely
the
funding
and
the
other
things
that
we've
done
in
the
last
six
years-
I'm
very,
very
proud
of
that.
P
And
so
these
things
have
a
have
a
tangible
benefit
not
only
to
the
to
the
person
that
we're
most
interested
in,
and
that
is
the
state
worker
or
the
teacher
who's
devoted
his
and
her
life
to
the
Commonwealth.
The
people
of
Kentucky,
but
also
this
is
a
tremendous
benefit
to
the
Commonwealth,
and
these
numbers
they're
easy
to
gloss
over.
P
They
are
massive
when
we're
talking
about
just
on
page
14,
the
state
contributions
to
ktrs
from
1.14
billion
in
2021
to
1.57
billion
in
2022.,
the
Delta
there,
the
difference
there
in
that
one
year
is
bigger
than
we
we
spend
every
year
on
our
entire
court
system
in
Kentucky.
That's
how
big
these
numbers
are,
and
that's
just
a
Delta,
and
so
when
we're
talking
about
approximately
a
13
billion
dollar
budget
and
billions
of
dollars
going
into
pensions.
P
This
is
a
massive
commitment
that
the
general
assembly
has
made
to
to
the
people
who've
committed
to
to
their
careers,
to
our
to
our
to
our
students
and
to
our
end,
to
our
into
our
citizens
and
and
what
what
it
does
look
is.
Is
the
opportunity
cost
right?
It
would
be
great
to
to
act
like
drunken
Sailors
and
not
meet
the
not
meet
the
requirements
like
haven't
been
done
before
we
before
2017.
It
would
be
wonderful
because
think
of
how
many
more
projects
we
could
bring
back
to
our
districts.
P
We
now
pay
that
this
year,
like
we've
done,
we
no
longer
take
for
from
the
the
rainy
day
fund
we
no
longer
take
from
from
professional
funds
like
we
used
to
from
the
nurses
and
Architects
and
so
forth,
and
so
on.
So
what
I'm
saying
is
these
disciplines?
This
discipline
that
we've
had
in
the
last
seven
years
has
tangible
and
profound
benefits
on
behalf
of
the
taxpayer
and
what
we're
talking
about
today
with
you
Mr
Barnes,
on
behalf
of
our
teachers.
P
So
let
me
go
back
to
the
beginning,
and
that
is
this:
when
I
leave
the
general
assembly-
and
hopefully
it
won't
be
too
long
from
now,
because
I
want
to
you
know,
but
I
don't
want
to
be
in
government
too
long,
but
when
I
leave
the
general
assembly
I
will
be
most
proud
of
what
we've
done
for
our
teachers
and
our
and
our
state
tax
workers,
which
a
nurse
to
the
benefit
of
the
taxpayers
as
well
as
anything
else.
We've
done.
It's
not
easy.
P
It's
certainly
not
glitzy
and
glamorous,
but
it's
hard
work
and
we've
done
it
and
I
want
to
thank
you
for
your
report
today
and
the
great
work
that
your
board
has
done.
I
look
at
these
I
look
at
these
investment
returns
and
I'm
very
proud
of
of
what
you've
done,
as
well
as
what
my
colleagues
in
the
general
assembly
have
done.
Thank
you.
Mr
chairman.
J
C
J
To
go
back
to
history,
let
me
just
go
back
to
history
as
a
history
teacher.
If
you
want
to
praise
the
retirees
or
the
retirement
system
of
teachers,
then
I
could
go
and
say
is
because
of
the
Democrats,
because
it
was
a
happy
chantler
that
created
the
teacher's
retirement
fund.
Because
of
that-
and
it
was
Democratic
Governors
over
a
period
of
time
that
helped
to
boast
our
retirement
system
a
period
of
time
in
terms
of
the
teacher's
retirement.
So
it's
been
on
a
bipartisan
basis.
J
As
well
and
so
I
just
I'm
set
I
sat
here
not
taken
enough
and
I
think
we
need
to
respond
to
that,
and
I
would
hope
that
we
come
in
here
to
work
together
in
a
bipartisan
way,
so
that
we
can
do
things
for
the
Commonwealth
of
Kentucky,
especially
for
the
people
of
the
Commonwealth
of
Kentucky,
and
that's
what
we
all
are
about.
Thank
you,
Mr
chairman.
A
Thank
you
representative.
We
have
had
a
good
meeting
today.
Certainly
a
lot
of
discussion.
A
lot
of
numbers
have
come
our
way.
Thank
you,
Mr
Barnes
and
Mr
Rieger.
We
appreciate
your
time
today.
May
I
remind
the
members
before
everyone
leaves.
The
next
meeting
will
be
fourth
at
11
A.M,
so
everybody
have
a
safe
day
and
a
great
week
at
this
time.
The
meeting
is
now
adjourned.