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From YouTube: Public Pension Oversight Board (5-23-22)
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B
A
B
C
B
We
do
have
a
call
right.
Yes,
we
do
have
a
quorum
first
order
business.
They
entertain
a
motion
to
prove
the
minutes.
From
last
meeting
we
have
a
motion.
I
have
a
second
second,
okay,
second
motion's
been
made,
and
second
all
in
favor
signify.
By
saying
I.
B
B
D
Yes,
mr
chair
beau
barnes,
I
serve
as
deputy
executive
secretary
and
general
counsel
for
the
teachers
retirement
system,
and
I
have
been
asked
today
to
make
a
presentation,
a
follow-up
presentation
on
sick
leave
and
sick
leave.
Related
items,
see
okay,
very
good
and
with
that
I'll
dig
in
since
the
sickly
leave
related
items.
I've
been
asked
to
talk
about
today
include
the
budget.
I
included
this
slide.
It's
just
a
real
quick
recap
of
the
budget
that
was
enacted
during
the
most
recent
session
for
the
upcoming
2022-2024
biennium.
D
It
provided
additional
funding
that
the
retirement
system
needed
and
marks
the
eighth
straight
year
of
full
or
very
near
full
funding
for
the
pension
fund,
so
very
appreciative
of
that
it
added
an
additional
more
than
1.36
billion
dollars
to
we
needed
to
implement
our
funding
plan
to
pay
off
that
legacy.
Unfunded
liability,
which
we
have
less
than
20
less
than
23
years
left
in
that
amortization
period,
to
pay
off
that
legacy.
Unfunded
liability,
at
which
point
we're
100
funded
again.
D
I've
said
this
before,
but
the
cost
to
the
commonwealth
that
we
will
be
billed
that
will
be
billed
will
be
a
little
bit
less
than
social
security
in
today's
dollars.
The
budget
also
provided
over
the
two-year
period.
The
1.36
billion
is
over.
D
The
two-year
period,
though
also
provided
over
the
two-year
period,
149
million
dollars
for
under
65
retiree
health
insurance
under
the
shared
responsibility
legislation
and
then
also
an
additional
479
million
dollars
to
pay
off
certain
liabilities
that
were
being
paid
for
on
an
amortized
basis
and
I'm
going
to
discuss
those
a
little
bit
more
in
the
next
slide
and
then
the
last
item
on
this
slide
is
78
billion
dollars
over
the
two-year
period
to
pay
for
sickly-related
liabilities
that
was
requested
in
our
budget
from
last
fall.
D
So
let's
go
into
a
little
more
detail
with
this
next
slide.
Okay,
and
with
this
slide,
I
know
the
top
says,
sick
leave
components
really
more
accurately.
That
should
be
something
it's
those
second
bullet
point
to
the
last.
I
was
just
talking
about
the
489.2
million.
For
these
past
liabilities
are
being
advertised
over
20-year
basis,
something
we
call
greenbox
dollars.
You
know
commonly
referred
to
down
here
as
the
greenbox
dollar,
so
this
really
is
greenbox
dollar
components
that
I'm
going
to
be
talking
about.
D
On
this
slide
and
again,
there
were
some
benefits
that
were
being
paid
for
not
in
lump
sum
in
each
budget
they
were
being
paid
for,
and
this
started
in
the
late
1990s,
but
they
were
being
paid
for
rather
than
a
lump
sum,
each
budget
they
were
being
paid
for
on
amortized
basis
over
20
years.
Okay,
and
this
479.2
million
dollars
paid
off
those
amortized
liabilities
for
good
okay.
So
those
are
now
paid
off.
The
green
box
dollars
are
paid
off
fully
and
there's
two
components
to
those
green
box
dollars.
D
The
first
is
sick,
leave,
okay
and
specifically
sick
leave
as
it's
used
in
retirement
calculation
purposes
as
salary
credit.
So
one
more
time
again,
just
so
everyone's
on
the
same
page
sickly,
the
salary
credit
means
that
when
school
districts
they
may
under
statute,
they
may
compensate
their
retiring
teachers
for
their
unused
sick
leave
at
30
percent
of
their
daily
rate
and
then
that
lump
sum
payment
is
added
to
their
last
annual
salary.
D
The
district
chooses
to
do
it
and
they
all
do
it,
but
that
lump
sum
payment
is
added
to
their
last
annual
salary
for
retirement
calculation
purposes,
and
the
state
pays
the
actuarial
cost
of
using
that
lump
sum.
Payment
for
sick
leave
as
salary
credit
and
for
all
those
past
sick
leave
payments
and
those
amortized
payments
about
380
million
dollars
of
that
469.2
million
dollars.
Retired
those
green
box
dollars
for
sick
leave
the
other
component
of
the
green
box
dollars.
Besides
the
sick
leave.
D
Are
there
some
old
supplemental
cost
of
living
adjustments?
I
know
we've
talked
about
this
before
the
this
body
before
but
teachers
by
statute
they
have
a
one
and
a
half
percent
annual
cola
built
into
their
statute,
built
into
the
contribution
rate
and
in
past
budgets,
and
it's
been
a
while.
It's
been
since
2008.
When
you
know
budgets
were
a
little
bit
better,
there's
more
revenue
from
time
to
time.
The
budget
would
provide
additional
funding
for
a
cola.
D
Over
and
above
that,
one
and
a
half
percent
cola,
and
though
the
cost
of
that
which
was
paid
for
by
the
state,
was
not
paid
for
lump
sum.
It
was
also
paid
for
on
a
20-year
amortized
basis,
and
so
this
429.2
million
dollars
paid
off
all
those
old
amortizations
of
those
old
supplemental
costs
of
living
adjustments
that
we
still
had
because
they're
20-year
amortizations,
even
though
the
last
supplement
cola
was
2008.
We
still
have
that
and
that's
about
100
million
dollars
of
this
479.2
billion
dollars
that
retired
those
green
box
dollars.
B
One
of
the
back
in
the
early
discussions
about
the
green
box
dollars
mentioned
that
some
of
the
some
of
the
green
box
dollars
some
of
the
hundred
million
dollars
and
cola
pay
payoff
was
from
2003
in
2004,
said,
or
was
it
all
from
2008.
D
No
2008
was
the
last
year
that
the
a
supplemental
cola
above
the
1.5
was
provided,
but
we
still
have
payments
going
back
to
2003
and
four.
You
know
that
early
because
our
20-year
payments
and
we're
just
now
in
fiscal
year
2022,
so
you
have
more
than
just
the
2008
year
involved
in
there.
Those
were
all
set
to
sunset.
D
You
know
2028,
you
know,
because
of
the
20-year
amortization.
We'd
have
all
those
paid
off,
but
you
still
have
several
years
of
those
supplemental
calls
that
we're
paying
on
we're
paying
on.
Let
me
correct
that
those
are
now.
A
D
For
so
what
what
did
the
479
million
dollars
do
for
the
commonwealth?
Well,
first,
you
know
it
saved
the
commonwealth
230
million
dollars
in
debt
service,
in
other
words,
interest
that
the
commonwealth
was
paying
on
those
amortized
payments,
so
huge
savings,
230
million
dollar
savings
by
paying
479.2
million
dollars
today
that
drops
the
cost
of
sick
leave,
going
forward
about
about
one
percent
of
payroll
or
about
39
million
dollars
a
year.
Okay-
and
I
have
some
more
slides
I'll
talk
about
this-
a
little
bit.
B
You
know
that's
a
big
deal
to
pay
those
green
box
dollars
off
and
so
fortunate
that
we
could
do
that
and
and
hats
off
to
representative
petry
and
and
a
r
chair
in
the
house
and
senator
mcdaniel
in
the
senate
in
the
senate,
as
in
our
chairman
and
the
conference
committee,
for
seeing
the
value
of
that
479
million
dollars,
which
could
be
used
for
a
lot
of
things.
B
A
A
Yes,
there's
also,
and
that
and
that's
where
that
savings
is
coming
from
and
and
I
think
in
the
budget
we
had
in
each
year,
39
million
to
cover
the
cost
on
an
ongoing
basis
over
the
next
two
years.
That
sounded
about
right,
yes,
sir,
but
that
does
not
reflect
the
value
of
the
active
teacher
sick
day.
Is
that
correct?
That
is
correct
now?
What
percent
of
the
a
deck
is?
How
much
of
the
a
deck
goes
to
cover
that.
D
D
So
last
you
know
by
state
law.
We
are
to
submit
our
budget
in
the
fall.
You
know,
so
we
do
that
and
last
fall.
We
submitted
that
budget
request
for
that
year's
crop
of
retiring
teachers,
for
their
liability,
for
sick
leave
and
for
the
two-year
period.
The
budget
that
we
submitted
last
fall
was
78
million
or
about
39
million
dollars
a
year,
and
that
budget
reflects
where
we
were
before
those
green
box
dollars
got
paid
off
because
you
know
in
this
previous
slide
at
the
bottom.
D
D
That
fits
in
with
the
green
box
dollar
budget
request
so
going
forward
in
the
future.
There
will
not
be
a
direct
line
item
budget
request
for
each
year's
retiring
class
of
teachers
in
that
39
million
amount
that
will
be
gone.
So
what
we're
going
to
be
left
with
is
what
I'm
going
to
be,
showing
you
on
the
next
slide
for
future
budgets
and
for
the
active
teacher
cost.
D
Okay
and
there's
an
active
teacher
cost
that,
in
addition
to
that
line,
item
budget
request,
it
is
part
of
what
you
know
what
we
call
the
a
deck.
The
actually
determined
employer
contribution
is
part
of
that
total
contribution
and
the
cost
of
that
going
forward,
and
I
really
need
to
there's
some
qualifications
with
this,
because
this
cost
is
going
to
change
in
a
big
way,
and
I
need
to
explain
that
to
give
you
the
full
picture
of
where
we're
headed
in
the
future.
D
But
for
the
more
immediate
budgets,
the
cost
of
active
teacher
sick
leave,
use
as
salary
credit
is
1.2
percent
of
payroll.
That's
about
45
million
dollars
annually.
Okay
was
what
will
we
request?
We
could
be
the
portion
of
the
adec
to
pay
for
that
liability
for
active
teachers
that
provides
both
for
the
normal
cost
of
active
teacher
sick
leave.
D
It
also
is
paying
off
the
unfunded
liability
on
active
teacher,
sick
leave
and
just
like
with
the
pension,
because
it's
part
of
that
you
know
it's
all
part
of
the
liabilities
we
have
less
than
23
years
to
pay
on
the
sick
leave
and
then
I'm
going
to
explain
in
a
second
why
the
dynamics
on
that
are
completely
changing.
Okay,
because
of
recent
legislation.
D
But
if
we
didn't
have
the
unfunded
liability
for
active
teacher
sick
leave,
the
normal
cost
would
be
0.4
of
payroll,
so
you
can
see
most
of
that.
1.2
percent
is
for
the
unfunded
liability,
but
without
the
unfunded
liability
0.4,
you
know
about
15
million
dollars
annually,
but
this
is
getting
already
changed.
I
mean
this
is
what's
going
to
happen
with
future
budgets
and
you
know
at
45
million.
I
need
to
note
this.
D
It
will
go
up
slightly
every
year
and
more
current,
more
immediate
budgets,
because
it
increases
every
year
with
payroll
growth
that
is
assumed
to
be
2.75
percent,
but
countering
that
countering
that
growth
is
the
fact
that
in
2008
there
was
uniform
pension
legislation
for
all
the
retirement
systems
and
among
the
things
it
did
at
trs.
Is
it
capped
a
sick
leave
for
salary
credit
purposes
to
300
days
at
a
max,
and
we
that's
not
most
of
our
members.
D
Obviously,
but
it's
we
do
have
a
number
of
members
who
have
very
long
careers
and
they've
not
used
sick
leave,
so
they
retire
with
more
than
300
days,
but
those
folks
will
now
be
capped,
but
even
more
significantly
as
a
result
of
house
bill
258,
which
was
enacted
during
the
2021
session.
D
Because
again,
this
is
active
teacher
liability
and
we're
not
adding
any
more.
You
know
so
it's
you're
going
to
see
a
slow
downward
trend
and
eventually
sick
leave.
You
know
out
in
the
future,
there
will
there'll
be
no
liability
for
it.
It'll
be
it'll,
be
it'll,
be
gone
oops.
Let
me
stay
here,
but
this
is
not.
D
I
don't
have
a
slide
for
this,
but
I
was
asked
about
this
in
a
previous
meeting
and
this
is
the
use
of
annual
dates
being
converted
for
sick
leave
purposes,
and
I
spoke
to
this
body
before
about
that
for
to
remind
folks
who
were
folks
who
may
not
have
been
here
with
the
last
meeting,
attended
a
reminder
about
what
that
is,
and
then
also
a
little
more
detail
about
that.
So
typically
and
we
have
171
school
districts,
okay,
171,
so
no
one!
You
know,
people
are
different.
D
D
Some
provide
more
annual
days,
but
typically
it's
10
annual
leave
a
day
and,
as
I
reported
last
time,
there
are
two
districts
that
allow
unused
annual
leave
days
to
roll
over
into
sick
leave
days
if
they're
unused
they
allow
unused
annual
leave
days
to
roll
over
into
sick
days.
Now
you
know
this
is
conditional
and
it's
limited.
The
accrual
of
annual
leave
days
is
conditional,
for
example,
how
many
years
of
service
do
you
have?
That
depends
you
get
more
annual
days
with
more
years
of
service.
D
You
have,
for
example,
there
are
limitations,
conditions
on
the
use
of
annual
days
that
can
be
rolled
over
for
sick
leave,
so
it
is
conditional
and
limited,
but
we
do
have
two
districts
and
we
have
a
cooperative
that
allow
the
rollover
conditionally
in
a
limited
manner
that
will
roll
over
annual
leave
days
into
sick
leave
days,
and
we
discussed
last
time
too.
I
want
to
make
sure
that
I
answered
this
the
last
time
we
discussed
it,
but
you
know
95
percent.
D
Only
school
districts
may
voluntarily
decide
to
make
that
lump
sum
payment
to
allow
unused
sick
leave
to
be
used
for
retirement
calculation
purposes.
The
other
five
percent
of
our
employers
cannot
allow
sick
leave
to
be
used
as
salary
credit.
D
You
know
to
add
to
their
last
annual
salary
they
can
and
it's
up
to
the
employer,
because
it's
not
mandatory,
but
it's
discretionary
with
those
other
employers
that
five
percent
they
may
allow
their
retiring
members
to
use
unused
sick
leave
as
service
credit,
so
not
as
increasing
their
salary
but
increasing
their
service
at
the
end
of
their
career.
So,
for
example,
someone
retires
with
30
years
of
service
and
they
have
a
hundred
unused
sick
leave
days.
That
employer
may
make
the
decision
that
they're
going
to
allow
them
to
use
that
hundred
day.
D
D
So
it's
a
different,
it's
a
completely
different
bucket,
but
I
just
want
to
make
sure
that
I
fully
explain
that
from
our
last
meeting
and
there's
something
else
that
arrays
with
the
co-chairs
from
last
meeting
when
we
discussed
the
rollover
of
annual
leave,
there's
something
else
in
the
districts-
and
this
applies
not
just
to
you
know,
year-round
counter
folks
who
get
annual
leave.
You
know
teachers
don't
get
annually,
they
they
have
the
summer
breaks,
but
there's
something
else
in
the
districts.
It's
called
personal
leave.
D
Okay
and
again
we
have
171
districts
and
they're
all
different,
but
most
districts
grant
their
employees,
including
their
teachers,
one
to
three
personal
days
a
year
and
most
are
going
to
allow
those
to
roll
over
unused
personal
leave
on
conditional
limited
basis.
In
many
cases,
allow
that
unused
use
personal
days
to
roll
over
into
sick
leave.
Okay
and
again
it
can
be
conditional
or
limited.
For
example,
we
have
a
district
that
has
gives
three
personal
days,
but
they
only
allow
one
day
to
roll
over
into
sick
leave.
D
So
again,
171
districts
they're
just
doing
different
things,
but
they
are
within
a
pretty
tight
window
of
what
they're
doing
out
there
with
the
personal
days,
and
I
I
think
that
that
was
all
the
questions
that
I
had
about
the
sick,
I'm
sorry,
the
annual
leave
rolling
over
and
the
personal
leave
and
the
personal
leave
being
able
to
roll
over,
but
certainly,
if
there's
any
questions,
I'd
be
more
than
happy
to
take.
Those
now.
A
D
D
D
A
We're
looking
at
about
a
45
million
dollar
cost.
Yes,
sir,
for
current
retiree
and
current
teacher.
D
A
D
The
biggest
group
would
be
the
universities,
and
probably
the
second
biggest,
would
be
kde,
but
you
have
some
other
groups
out
there:
educational
professional
standards
board
education,
related
groups,
entities
that
participate
in
trs,
and
not
all
of
those
grants
like
we
have
two
universities
don't
give
sick
leave.
We
have
you
know,
universities
that
are
employers
that
don't
allow
for
them
to
be
used
as
salary
credit.
You
know,
but
again,
if
they
do,
they
have
to
pay
the
cost.
A
D
So
for
the
five
percent
of
our
employers,
who
are
not
school
districts
when
they
make
the
decision
to
compensate
their
employees
for
unused
sick
leave
as
salary-
I
mean
service
credit,
then
they
they
have
to
pay
the
full
actuarial
cost
of
that
we
did
not
build
the
state.
The
state
does
not
charge
for
the
actuarial
cost
of
that,
like
the
state
is
for
those
school
districts
when
the
unused
sick
leave
is
paid
for
at
lump
sum
at
30
of
the
daily
rate
and
incorporated
as
salary
credit
in
their
last
year's
salary.
Okay,.
D
A
Thank
you,
mr
chairman,
really
quickly
when
the
budget
requests
were
put
in
for
39
million
a
year.
The
effect
of
payment
of
greenbox
dollars
was
not
known
at
that
point.
Correct.
Okay,
so
with
the
payment
of
the
green
dots
by
greenbox
dollars,
paid
in
full
is
the
39
million
necessary.
At
this
point.
D
There
will
be
no
future
budget
requests
for
that
that
39
million
will
go
into
it's
considered.
You
know
when
we're
making
as
part
of
the
future
budget
requests,
I
mean
going
out
long
term.
It
is
additional
funding
for
the
pension
fund.
A
A
Okay,
so
for
the
39
million
that
was
set
aside
in
the
next
two
years
of
the
biennium
under
current
coming
budget,
that's
just
extra
39
million
per
year
that
is
allocated
at
this
point
with
no
line
item
purpose.
A
D
Yes,
funding
funding.
Yes,
so
the
actuaries
look
at
this
really
comprehensively
or
what
are
the
liabilities
of
the
system
and
those
are
reported?
You
know
our
annual
financial
report
is
sort
of
a
lump
sum
number.
This
is
the
outstanding
liability
of
the
system,
so
those
39
million
dollars
each
year
are
not
needed
for
these
next
two
years,
retiree
classes
they
will
go
towards.
Yes,
the
generally
the
pension
itself.
You
know
so
be
additional
funding
for
the
pension.
It
will
not
be
applied
to
sick
leave.
A
B
A
Senator
higgins,
I
want
to
kind
of
repeat
what
representative
petry
said,
maybe
in
a
different
way
the
greenbox
dollars
and
your
budget
requests
were
for
past
liabilities
amortized
over
a
20-year
term.
D
A
C
A
A
It
over
20
years
and
so
now,
you're
saying,
though,
that
that
we're
going
to
now
see
all
that
wrapped
up
into
the
actually
determined
contribution
in
the
future.
It's
not
going
to
be
a
separate
element.
It's
you
know,
just
like
in
the
kppa
system,
the
comp
time
payout
to
an
individual
that
goes
to
their
salary
credit
you
know,
is
buried
into
the
adac
and
now,
rather
than
separating
these
pieces
in
your
budget
request,
it's
going
to
be
buried
in
your
a
day.
D
It
will
actually
so
because
there
was
a
separation
sort
of
for
active
teacher
liability
and
retired
teacher
liability.
D
That
will-
and
we
have
those
dollars
paid
off
and
we've
got
almost
half
a
billion
dollars
coming
in
our
actuary
says
we
have
a
one
percent
reduction
in
payroll,
which
is
really
the
equivalent
to
the
39
million
dollars
a
year,
so,
instead
of
in
future
budgets,
the
39
and
the
45
million
dollars,
both
being
part
of
the
total
budget
request
one
online
item,
one
a
deck,
we're
doing
away
with
a
line
item:
39
million
and
that'll
just
leave
the
approximately
45
million
dollars
the
1.2
to
pay
which
will
grow
each
year
again
with
payroll
growth
and
eventually
it
will
start.
B
Director
hicks,
thank
you.
Oh.
If
I
remember
correctly,
I
wrote
it
down
right.
We
had
375
million
greenbox
dollars
that
belonged
to,
I
guess,
sick
days
for
retired
teachers,
that
we
have
534
million
dollars
on
current
liability,
unfunded
liability
for
current
teachers
for
a
total
of
909
million
dollars
that
we
had
liability
for
sick
days
and
we're
paying
off
375.
So
we
end
up
now
with
534
million
unfunded
liability
for
current
sick
days,
and
that's
what
we'll
be
working
on
from
now
on
those
those
for
those
current
teachers.
D
And
let
me
if
I
may,
mr
chair,
sometimes
when
we're
discussing
these
things,
those
questions
back
and
forth.
I'm
not
sure
if
I've
always
followed
up
with
questions
in
past
meetings,
but
I
want
to
be
clear
on
that.
The
538
million
dollars
represents.
There
are
a
lot
of
questions
about
sick
leave,
and
you
know
this
budget
having
additional
funding
and
maybe
doing
something
just
to
retire
sick
leave.
So
we
had
a
request
to
you
know
what?
D
How
much
would
it
take
to
pay
for
sick
leave
going
forward
so
that
there
would
be
no
cost
for
sick
leave
at
all?
You
know
not
even
normal
cost.
We
would
just
be
looking
at
every
year.
You're
gonna
have
all
gains
and
loss.
You
know
we
always
do
we
amortize
those
over
a
20-year
period,
so
you
have
some
small
margin
of
gains
loss
but
other
than
that
there
would
be
no
cost
assigned
to
sick
leave.
There
wouldn't
be
that
normal
cost
even
for
sick
leave.
D
You
know
the
45
million
and
that's
that's
super
pre-funding,
a
plan,
but
if
we
look
at
how
we
sort
of
value
liabilities
for
just
the
pension
of
their
assets,
we
anticipate
that
we
are
going
to
still
get
money
in
we're
going
to
get
that
normal
cost.
Okay
and
normal
cost
is
what
we
need
to
put
aside
each
year
that,
with
most
importantly,
investment
income,
we
can
make
sure
those
teachers
benefits
are
going
to
be
paid
when
they
retire.
D
So
the
538
million
represents
an
even
greater.
You
know:
savings
out
of
the
budget
because
we're
not
asking
for
the
normal
cost.
If
we
continue
with
what-
and
this
is
what
we-
our
actuaries
will
do
with
what
the
cost
of
sick
leave
is
with
getting
still
getting,
the
normal
cost
is
and
valuing
sick
leave
liability.
Just
like
we
do
pension
other
pension
liability,
it
would
be
408
million
dollars
would
be
what
we'd
be
looking
at
for
liability.
Actually,
liability
of
sick
leave
what
our
afterwards
built
in.
B
One
other
another
question.
Of
course
we
talk
about
10
to
12
annual
days
that
some
districts
are
doing
and
one
to
three
personal
days
that
some
districts
are
doing,
and
then
you
have
two
districts
that
are
doing.
Something
else
was
was
that
ever
you
know
the
intended
use
of
one
when
okay
well
sick
days?
Is
that
something
that
trs
okayed
or
was
that
legislatively
done?.
D
That
was
done
by
legislation.
You
know
it's:
a
department
of
education,
statutes,
krs
161
155
for
sick
leave,
the
salary
credit.
D
D
That
goes
back
quite
a
while.
I
know
their
actuary
had
some
concerns
at
the
time
about
making
sure
the
cost
of
sick
leave
was
recovered
because
it
was
a
benefit
improvement.
You
know
a
new
benefit
adjustment,
so
I
I
have
seen
at
some
time
in
my
life
the
retirement
system
over
20
years,
plus
an
actual
report
where
I
didn't
know
that
there
were
concerns
back
in
the
day.
B
D
We
no
no
trs
has
no
authority
to
do
that.
I
mean
we
have
a
very,
very
limited
role.
It's
really
just
automatic,
you
know
it's
dollars
reported
for
sick
leave,
we
add
it
to
their
last
salary
and
then
we
would
calculate
the
retirement
based
on
that.
That's
our
only
role,
we
don't
request,
we
don't
encourage
or
we
don't
promote.
You
know
it's
just
that
this
is
something
that
is
completely
external
trs.
It's
ours.
It's
just
an
automatic
calculation.
B
We
need
to
know
exactly
how
much
we
owe
how
much
we're
going
to
pay
each
year
and-
and
I
know
there
might
be
some
verifi-
you
know
variation
in
in
that
going
forward,
but
I
think
we
need
to
see
it
in
writing
from
the
actuary
what
this
cost
and
what
we
pay
every
year
and
know
exactly
going
forward
where
we
stand
on
sick
leave
and
the
unfunded
liability
and
I'll
send
you
a
letter
and
then,
like
I
said
we
get
something
in
writing
where
we
all
know
and
representative
petrie
and
chairman
mcdaniel
will
know
every
year
what
that,
what
you're
going
to
be
requesting
and
folks
here
on
ppob
and
other
legislators,
we
can
share
that
with
them.
B
So
one
of
the
things
that
we
really
need
to
do
is
make
sure
that
more
people
understand
the
pension
system
and
I
think
one
of
the
reasons
we
we
have
unfunded
liabilities
as
things
were
done
years
ago,
because
a
lot
of
people
didn't
understand
about
unfunded
liability
and
and
making
sure
that
these
pension
systems
were
properly
funded.
So
I'll
get
that
letter
to
you
and
maybe
get
it
back
to
us
by
the
next
meeting.
I'd
appreciate
it.
A
I
want
to
make
sure
I
heard
this
right
make
sure
I'm
absorbing
it
correctly.
The
78
million
dollars
that
was
budgeted
that
represented
petrie
was
asking
about
that
78
million
dollars
that
was
budgeted
is
that
going
toward
the
legacy
debt
of
the
teacher's
pension?
Now
that
the
the
now
that
the
those
green
box
dollars
are
paid
off
is
that
correct.
D
That
is
correct
again
we're
just
it's
going
towards
the
total
liabilities
of
the
system,
and
we
know
we
don't
do
line
item
budget
requests
for
individually,
sick
leave
or
you
know
these
other
items.
It's
just.
It
goes
to
pay
down
the
total
liabilities
which
it
is
that
legacy
unfunded
liability.
It
will
help
pay
that
down
more
quickly.
Yes,.
A
B
Any
other
questions
both
thank
you
and
appreciate
your
your
being
candid
with
us
on
all
those
questions.
I
know
it's
a
lot
so
and
I
will
get
you
a
letter,
so
we
can
get
some
clarification.
Okay.
Thank
you,
mr
chair.
Thank
you.
C
Sir,
you
used
the
great
analogy:
you've
used
before
clear
as
mud.
This
was
clear
as
mud
back
in
2004.
C
It
has
not
gained
clarity
over
the
time
it
has
become
much
more
complex
and,
as
I
was
sitting
there
with
30
or
40
slides
this
weekend,
I
decided
to
whittle
it
down
to
10
or
11
to
try
to
provide
a
little
bit
of
clarity,
and
it
is
a
little
bit
of
a
blast
from
the
past
for
those
who
have
been
around
for
a
while
to
kind
of
start
off.
I
was
going
to
talk
a
little
bit
about
the
national
perspective.
C
Retiree
health
benefits
for
public
employees
are
have
often
been
referred
to
in
the
broader
class
known
as
post-employment
benefits
or
opeb,
which
vary
among
states
and
in
kentucky,
and
if
you
were
to
go
back
far
enough,
in
fact,
back
in
2004,
2005
2006
opeb
benefits
were
just
kind
of
off
books.
If
you
will,
and
the
governmental
accounting
standards
board
issued
statements,
number
43
and
45,
which
kind
of
if
you
will
pull
back
the
curtains.
C
If
you
will
to
see
what
all
the
different
states
had
in
relationship
to
opec
benefits
and
at
that
time
I
remember
the
discussions
were
this
is
going
to
be.
Big.
People
will
make
huge
changes
across
the
nation
and
we
have
seen
some
changes,
but
we
haven't
seen
the
broad
changes
completely
across
the
nation,
as
you
would
see,
but
there
have
been
some
things
as
we
kind
of
move
forward
now.
Those
standards
are
now
replaced
by
newer
standards
and
I'll
talk
a
little
bit
about
that
as
we
go
forward.
C
As
far
as
benefits
are
concerned,
most
states
provide
retiree
health
benefits
under
three
common
broad
plan
designs.
One
would
be
a
percentage
of
the
premium
and
we've
had
that
in
our
state
in
years
past,
and
currently,
where
you
know
a
certain
percentage
of
the
premium.
Some
cases
the
full
premium
was
paid.
C
That
is
the
one
which
has
probably
lost
a
little
bit
of
steam
as
it's
moved
forward,
because
you
do
expose
yourself
to
medical
inflation,
and
that's
one
of
the
reasons
why
you
see
back
in
2003
and
2004
that
there
were
changes
made
to
our
kppa
systems.
The
fixed
dollar
subsidies
are
exactly
what
they
are.
It's
just
a
certain
dollar
amount
that
you
receive
as
a
retiree
that
don't
adjust
with
the
with
the
medical
premiums.
C
We
also
have
that
that
would
be
our
tier
one
b's
tier
twos,
tier
threes
and
our
kppa
systems.
They
get
a
certain
dollar
amount
towards
their
retiree
health
benefits
when
they
retire,
and
that
certainly
raised
some
questions
in
the
last
year
or
so,
and
we
had
a
bill
that
addressed
a
little
bit
of
that.
The
implied
subsidy
is
this.
Is
that
you
know
one
benefit
is
a
retiree
is
if
I'm
included
in
the
same
class
as
active
employees
right
and
I'm
not
saying
retirees
are
more
expensive.
It's
just
as
you
get
older.
C
I
take
blood
pressure
medicine.
Now
I
used
to
not
take
blood
pressure
mess
and
wish.
I
didn't
take
blood
pressure
medicine,
but
as
you
get
older,
typically,
your
claims
are
higher,
and
so,
in
our
kehp
plan,
our
plan
that
we
provide
to
state
employees,
school
employees
and
also
our
non-medicare
eligible
retirees,
are
in
that
same
pool.
So
you
get
the
benefit
of
a
pulled
group
which
is
often
referred
to
as
an
implied
subsidy.
C
If
you
will,
and
certainly
as
we
look
down
in
our
state,
we
have
kind
of
everything
we
used
to
all
be
on
percentages
of
premiums
if
we
looked
across
our
systems
now.
This
is
where
it
gets
a
lot
more.
How
can
I
say
of
losing
clarity?
It
gets
a
little
more
muddy
as
we've
moved
along
when
you
look
at
most
states,
there
are
very
few
legal
protections.
It
may
have
been
a
budgetary
item
that
was
listed
a
subsidy
or
something
like
that.
C
It's
not
that
other
states
don't
have
that.
It's
that
those
would
be
done
sometimes
through
a
different
entity
through
their
personnel
cabinet
if
you
will
or
through
maybe
a
health
insurance
agency
that
is
dealing
with
that
in
that
state,
so
that
sometimes
gets
to
be
a
little
bit
confusing
the
retirement
systems
handle
a
lot
of
the
day-to-day
information
and
talk
with
members
and
have
counselors
that
handle
a
lot
of
that
discussion.
C
So
it's
a
little
bit
different
as
we
kind
of
look
at
kentucky
and
we
look
at
most
states
per
ncsl,
a
2020,
ncsl
legislative,
brief
nationwide.
If
we
were
to
take
all
the
retiree
health
liabilities
that
were
out
there
at
one
time,
seven
percent
were
funded
with
assets,
so
that
kind
of
gives
you
an
idea
of
where
we
are
nationally
is
that
most
people
are
still
on
a
pay-as-you-go
basis.
C
There
has
still
been
some
improvement
as
we
look
across
the
states,
but
is
still
largely
on
a
pay-as-you-go
basis
and
like
pensions,
you
know
we
used
to
have
one
set
of
numbers.
This
is
the
fun
thing.
We
now
have
three
four
five
sets
of
pension
numbers,
depending
upon
which
conference
you
go
to
who
you
talk
to
at
one
time,
our
our
gatsby
standards
and
our
funding
standards
that
we
had
in
the
valuation
were
the
same.
Now
with
our
new
gatsby
standards.
They
are
divorced
from
each
other,
so
we
have
a
funding
number.
C
C
C
It's
a
one-page
sheet
has
a
lot
of
good
information
and
a
small
amount
of
space,
there's
also
in
a
two
additional
publications
that
are
in
there
one
being
one
from
ncsl
that
I
also
thought
was
a
good
little
short
piece
and
then,
if
you
wanted
to
see
kind
of
a
comparison
of
state
by
state
with
a
little
more
detail,
there's
a
survey
that
was
done
a
couple
years
ago
in
there
as
well
too.
If
you
need
something
to
get
you
to
sleep
tonight,
so
that
being
said,
I
do
think
those
two
smaller
publications
are
good.
C
C
You
know
pre-funding
is
we're
going
to
have
assets
that
are
set
aside,
and
I
thought
this
was
a
good
chart
that
was
in
one
of
these
publications
that
kind
of
showed
where
in
2017,
where
were
the
distribution
of
opeb
assets,
money
set
aside
for
retiree
health
and
you
can
see
technically
we're
fourth,
but
all
other
states
are
listed.
Fourth
in
this,
so
to
give
you
an
idea
of
how
much
money
was
out
there
in
fy
17
set
aside
for
that,
you
know
hey.
C
C
This
kind
of
gave
you
an
idea
of
what
were
the
opeb
unfunded
liabilities
by
state
per
capita
and
so
the
state
of
kentucky
you
can
see
there
with
fourteen
hundred
and
eleven
dollars
per
person
in
opeb
liabilities
now,
certainly
as
it
moves
down
towards
the
orange
and
yellow
that
means
you
have
a
lot
more
as
it
moves
towards
the
darker
blue.
You
have
less,
I
just
kind
of
pulled
up
what
ours
is
today
at
this
time
it
when
this
was
done.
We
had
about
6.2
billion
dollars
of
oped
unfunded
liabilities.
C
C
This
is
always
kind
of
a
funny
little
chart
to
look
at
is
years
ago.
When
people
came
to
testify,
they
would
say
we
have
a
retired
health
problem.
We
don't
have
a
pension
problem
and
that
was
largely
true.
We
do
have
some
2006
data,
but
not
for
all
systems,
but
it
would
have
been
close
to
60
percent
of
the
liabilities
at
that
time,
with
retiree
health
instead
of
pension.
Today,
you
can
look
and
see
that
pension
has
grown
and
certainly
that's
starting
to
become
more
under
control
and
to
drop
for
some
of
our
systems.
C
C
Well,
there's,
probably
a
lot
of
reasons
we
get
down
there.
There
have
been
several
reform
packages
with
the
kppa,
our
kers
cers
and
sprs
systems,
we've
transitioned
from
a
percentage
of
the
premium
to
a
fixed
dollar
amount
which
has
reduced
our
cost
over
time.
There
has
been
an
increase
in
the
employee
contribution
rate
trs.
They
had
the
shared
solution
provisions
back
in
2010.
C
They
had
changes
in
2013
that
essentially
mimicked
what
kppa
has
gone
through
and
certainly,
as
we
had
a
movement
to
full
funding.
Again,
most
states
were
on
a
pay-as-you-go
basis,
we're
not
out
now.
All
of
our
funds
are
on
a
actually
pre-funded
model,
kppa
and
jfrs.
They
have
an
actually
determined
contribution.
C
Trs
has
statutory
rates
from
the
shared
solution
and,
as
that
fund
has
improved
that
statutory
rate
is
above
the
actuarially
determined
contribution,
which
means
it
gets
better
quicker.
As
long
as
that's
paid,
the
other
thing
too
is
we've
had
a
really
good
positive
actuarial
experience
in
our
health
plans,
particularly
as
it
relates
to
the
medicare
eligible
population
premiums
across
those
plans
and
I'll
show.
C
This
in
a
minute
have
been
pretty
flat
over
the
course
of
time,
and
that's
largely
due
to
medicare
modernization
act
which
provided
subsidies
for
us
to
continue
providing
prescription
drug
coverage
to
our
medicare
eligible
population.
So
we
got
some
money
from
the
feds.
The
retirement
systems
have
done
a
really
good
job
of
trying
to
farm
out
those
monies
to
get
as
much
as
possible.
Believe
it
or
not.
There's
a
lot
of
ways
to
do
it
and
they've
been
pretty
creative
in
trying
to
find
ways
to
keep
those
costs
down
as
well
too.
C
C
C
What
would
things
look
like
in
five
years
once
these
investment
returns
are
phased
in,
and
so
you
can
see
these
funds
are
continuing
to
improve
more
getting
closer
to
that
kind
of
100
percent
mark
and
then
over
on
the
far
right
you
can
see.
When
are
these
funds
projected
to
be
100
funded
now,
in
the
case
of
kers
and
cers,
and
state
police
for
those
that
aren't
100,
funded
you'll,
look
and
see
whether
projected
to
be
95?
Why
is
it
going
to
take
so
long?
C
C
C
I
won't
walk
through
the
last
couple
bullet
points,
but
if
you
look
to
the
right,
this
gives
you
kind
of
an
idea
of
premiums
over
the
course
of
time
and
there's
certainly
kehp
you'll
see
the
orange
line,
which
is
the
single
premium
for
their
living.
Well
ppo.
Now
we
have
changed
the
names
of
plans
about
more
times
than
I
care
to
over.
The
director
hicks
is
laughing.
C
Sometimes
we
get
confused
about
the
ones
the
names
that
they
used
to
be,
but
I've
tried
to
keep
fine
with
something
that
was
pretty
consistent
with
what
we
had
back
in
2004.
Most
people
chose
a
ppo
then
today
mo
more
people
are
choosing
like
a
living
well
cdhp
a
high
deductible
plan,
but
this
kind
of
gives
us
more
of
an
apples
to
apples.
C
In
my
mind
of
what
premiums
are
like
and
if
you
go
back
to
2004,
there
was
a
year
where
there
were
a
lot
of
people
outside
about
health
insurance
and
in
that
year,
after
that
year,
premiums
went
from
286
dollars
to
410
dollars
a
month
and
that's
kind
of
when
retirement
systems
really
started
to
get
alarmed
about
the
cost,
because
all
of
a
sudden,
now
those
liabilities
are
growing
a
lot.
That's
a
40
increase
in
premiums,
which
means,
potentially,
you
have
a
40
increase
in
your
liabilities
or
some
derivation
of
that.
C
So
to
kind
of
look
at
those
as
well
too
so
you'll
see
the
single
plant
orange
you'll
see
the
family
plan
there
on
the
right
so
are
on
the
blue,
but
then
you'll
see
those
medicare
eligible
plans
and
each
one
is
listed
there
and
you
can
notice
how
flat
that
is
over
the
course
of
time.
The
systems
assume
that
medical,
inflation
or
medical
premiums
are
going
to
grow
by
a
certain
amount
each
year.
C
So
if
you
keep
those
medical
inflation,
medical
premiums
flat,
that
means
we've
consistently
had
gain
after
gain
after
gain
that
have
helped
to
propel
these
systems,
their
retiree
health
funds
forward,
and
so
just
kind
of
look
on
the
left
hand
side.
You
can
see
that
the
medicare
eligible
premiums
were
between
274
to
315,
274
being
trs
to
where
you
look
on
the
right,
211
being
trs,
they
have
pretty
well.
C
C
Prior
to
july,
1
2003
people
were
provided
a
percentage
of
the
premium,
and
that
premium
was
on
a
sliding
scale
started
at
four
years.
With
25
year
premium
friday,
you
retired
you
got
25
percent
of
your
single
premium
paid
as
a
non-hazardous
up
to
20
years.
So,
if
you
retire
with
20
years,
you
got
your
full
single
premium
pay.
C
On
the
hazardous
side.
It
was
a
full
single
parent
plus
couple
family
premium,
paid
at
20
years,
hazardous
service
that
had
to
be
all
hazardous
service,
but
that
benefit
we'll
have
to
note.
Initially,
it
was
only
single
coverage
for
everybody,
and
in
1982
is
when
it
was
moved
towards
the
hazardous
additional
benefit.
C
So
back
in
2003
there
was
actually
two
bills:
2003
2004
in
2003,
the
retiree
health
benefits
were
specifically
exempted
from
the
invaluable
contract
provisions.
There
was
a
very
clear
written
out
provisions
house,
bill
430
and
at
the
time,
the
so
the
health
discussions
are
going
on
the
kentucky
retirement
systems
board
at
that
time
actually
met
and
came
forward
with
a
proposal
that
became
the
benefits
for
post
03
and
it
was
really
designed
to
get
out
of
the
medical
inflation
business.
C
So
when
you
think
about
trying
to
fund
retiree
health
benefits,
you
have
the
same
kind
of
issues
that
you
run
into
the
same
risk.
I
shouldn't
say:
issue
the
same
risk.
You
run
into
payroll
growth,
you
run
into
investment
return
assumption,
but
when
you
tie
it
to
a
percentage
of
premium,
which
is
not
necessarily
a
bad
thing,
but
your
risk
is
what
happens
to
that
premium.
C
So
if
I
said
statutorily,
you
get
100
the
premium
again
going
back
to
that
2004-2005
time
premiums
go
up.
40
percent,
then
that
next
valuation
is
going
to
have
a
huge
load
in
it,
the
next
time
to
pay
for
that.
So
that
was
the
decision
to
kind
of
get
out
of
that,
and
you
can
see
at
the
time
what
what
that
bill
is
house
bill.
290
provided
was
10
a
month
for
each
year
of
service
for
non-has
15
a
month
for
hazardous
for
each
year
of
service.
C
So
if
I
was
non-haz
and
I
worked
30
years,
I
got
300
bucks.
Now
you
can
look
on
the
left
hand
side
in
franklin
county
in
2004.
It
cost
286
dollars
to
buy
a
single
premium.
Okay,
so
that
was
enough
to
pay
for
a
single
premium
move
fast
forward
to
today,
772
dollars.
Now
that
ten
dollars
has
moved
up
each
year
right,
but
it's
only
about
one
and
a
half
percent,
so
that
amount
today
is
419
dollars
and
17
cents.
So
that
gives
you
an
idea.
C
No
one
likes
to
take
medical
inflation
risk,
but
so
what
we
did
in
those
time
frames
is
transition
from
the
employer
side
to
the
employee
side.
If
you
will
now,
we
do
need
to
know
senate
bill
209
that
was
passed.
This
last
year
increases
this
for
career
employees
and
really
only
on
the
under
65.
So
that's
a
probably
need
to
back
up
and
note
that
notice,
if
we
hadn't
done
anything
in
senate
bill
209
that
it's
still
enough
to
pay
for
the
medicare
eligible
premiums.
C
So
the
problem
that
you're
going
to
get
from
constituents
today
out
of
the
tier
1bs
tier
2's
tier
3s,
is
the
questions
they're
going
to
bring
forward.
Is
it's
going
to
be
an
under
65
issue,
not
a
medicare
eligible
issue,
so
what
they
did
is
is
on
career
employees.
It
will
add
an
additional
five
dollars
per
month
on
their
for
each
year
that
they
work.
C
C
C
So
for
trs,
instead
of
things
being
statutory,
we're
like
completely
statutory
so
like
when
I
go
in
the
retirement
statutes
and
look
at
kppa,
I'm
going
to
find
all
of
these
numbers
built
in
with
the
trs
board.
Ultimately,
the
amount
of
subsidy
is
based
upon
available
funding
and
the
board
establishes
what
those
are.
C
They
also
have
a
sliding
scale
where
they
pay
a
subsidy,
the
full
subsidy
being
paid
at
20
years.
If
I
entered
the
system
prior
to
7,
1
2002
and
at
27
years
of
service,
if
I
came
in
the
system
after
7
1
20
2002
for
just
for
references
purposes,
I
tried
to
kind
of
keep
this
pretty
simple
to
kind
of
see
the
premiums
as
you
look
over
to
the
right.
C
As
far
as
employee
contributions,
there's
a
one
percent
of
paid
contribution
for
tier
twos
and
tier
threes
in
kppa,
and
then
cash
balance
per
participants
in
jfrs.
I
will
note
that
gfrs
participants
pay
1
more
prior
to
that
date,
but
it's
on
the
funds,
the
pension
side,
employer
contributions
over
time.
These
have
gone
down,
but
just
to
kind
of
give
you
a
little
bit
of
a
reference.
Certainly
kers9
has
we're
in
the
house
bill
8
world,
where
we
have
a
normal
cost
and
an
unfunded
liability
payment.
C
So
those
numbers
have
come
down,
but
you
can
see
down
through
there
individually
for
each
system
for
the
fy
23
rates.
What
do
those
look
like?
How
much
did
we
fund
for
pension
benefits?
How
much
do
we
fund
for
retiree
health
benefits
and
then
certainly
we
have
three
where
there's
no
employer
contributions
for
retiree
health,
because
they've
reached
the
level
where
there's
a
surplus
of
assets
in
the
long
run,
mid
assurance
should
say
short
to
midterm.
Employer
costs
are
projected
to
go
down
for
kers,
non-has,
cers
and
sprs.
C
On
the
trs
side.
It's
certainly
different.
We
don't
they
do
compute
an
actually
determined
contribution,
but
their
funding
is
based
upon
fixed
statutory
contributions
and
historically,
if
you
go
back,
they
were
funded
with
three-quarters
of
a
percent
contribution
from
the
employee
and
three-quarters
percent
contribution
from
the
state,
and
that
was
enough.
Money
to
fund
retiree
health
benefits
on
a
pay-as-you-go
basis
up
until
we
get
to
about
1998,
and
at
that
time
there
was
a
measure
passed
that
allowed
the
board
to
redirect
contributions
from
the
pension
fund
to
retiree
health
by
board
action.
C
When
the
shared
solution
provisions
came
into
play,
you
have
a
very
different
dynamic
where
a
lot
of
this
is
determined
by
the
board,
but
the
groups
got
together
and
came
forward
with
the
proposal
and
ultimately,
you
saw
the
employee
contribution
rate
for
retiree
health
go
up
two
to
three
percent,
and
so
that
teachers
are
paying
three
point:
seven:
five
percent
of
pay
into
the
retiree
health
fund,
local
school
districts,
chipped
in
as
well
too
three
percent
to
the
retiree
health
funds
and
all
these
were
phased
in
over
time.
C
The
pre-medicare
retirees
paid.
What
was
the
equivalent
the
medicare
part
b
premium,
so
they
paid
whatever
state
employee
paid
plus
that
amount
that
I
talked
about.
A
little
bit
earlier,
then,
the
state
contributions
were
to
pay
for
the
under
65
retirees
who
retired
on
or
after
july,
1
2010,
and
that's
certainly
been
a
discussion
point,
because
the
amount
that
is
paid
under
this
is
subject
to
reduction
based
upon
the
needs
of
the
commonwealth.
C
C
Now
you
can
look
up
there
and
see
3.753
states
contribution
of
0.75,
plus
the
additional
is
going
to
be
an
amount.
That's
well
above
that,
so
the
statutory
rates
are
in
excess
of
the
actually
determined
contribution
rate
which,
as
we
look
at
this
fund,
it
keeps
improving
pretty
rapidly,
which
would
be
anticipated
when
the
arc
is
well
over
that
amount
and
we'll
talk
a
little
bit
about
that
in
a
second
about
probably
what
the
more
things
you
you
all
want
to
talk
about.
This.
C
C
Yes,
sir-
and
there
was
a
lot
of
consternation
at
that
time,
frame
about
this
very
issue,
you
know,
are
you
going
to
come
back
next
year
and
ask
for
more
money
to
pay
for
this?
If
you
will,
and
so
there
was
a
it's
hours
to
pay
now,
I
don't
when
money
goes
in
the
bucket,
I
don't
know
how
it
gets
paid
out
when
it
comes
from
different
sources,
but
you
know
there
is
no
specific
line
item
for
that
three
percent.
C
Let
me
keep
going
the
less.
I
talk
the
better.
It
is
so
I
mentioned
the
earlier.
The
assumption
sets
and
so
there's
kind
of
these
three
big
assumptions,
two
of
which
we
deal
with
in
pensions,
investment,
return
and
payroll
growth.
C
You
will
notice
that
the
investment
return
assumptions
are
a
little
different
than
what
we
talk
about
on
the
pension
funds
so
for
like
kers,
it's
five
and
a
quarter
cers
it's
six
and
a
quarter
on
all
our
insurance
funds
in
kppa,
they're,
six
and
a
quarter
trs
recently
reduced
theirs.
On
the
insurance
side,
it
was
eight
now
it's
7.1
and
jfrs
is
consistent
with
their
pension
and
insurance
at
6.5.
C
We
talked
a
little
bit
about
payroll
growth,
for
certainly
in
the
past,
they
follow
what
they
do
on
the
pension
side.
You
note
again
trs
reduced
theirs
recently
on
their
financing
mechanism
and
then
kers
is
at
zero.
Spr
says
zero.
Cers
is
at
two
and
then
jfrs
really
didn't
have
payroll
growth
built
into
their
dynamic.
C
They
have
transitioned
with
senate
bill
32
senator
higdon
in
your
bill
to
clean
up
bill
to
actually
put
them
on
a
true
pre-funded
model
on
all
the
what
they
do,
though-
or
I
should
say
a
more-
they
had
an
old
funding
mechanism
that,
if
you
read
the
statutes
and
other
systems
from
1966,
you
would
see
showing
up.
This
is
more
consistent
with
what
the
other
systems
do,
but
it
essentially
moves
to
level
dollar
amortization.
So
it's
zero
percent.
C
A
big
item
in
any
of
this
is
certainly
medical
inflation
and
on
the
right,
you
can
kind
of
see
what
did
they
assume
for
this
year
and
what
does
it
trend
down
to
and
they
all
have
differing
periods
of
when
they
trend
down
to
kppa
and
jfrs?
Have
one
set
of
medical
inflation
assumptions
for
both
non-medicare
and
medicare?
Trs
has
differing
ones
and
so
again
kind
of
getting
back
to
things.
If
medical
inflation
picks
up
in
those
medicare
eligible
plans
and
there's
not
adjustments,
then
you
could
see.
C
We've
had
all
these
nice
actuarial
gains
for
years
is
we
could
have
things
see-saw
back
the
other
way
as
well
too
same
thing
in
the
state
health
plan.
If
costs
go
up,
potentially
costs
are
going
to
go
up
to
the
system,
so
this
is
always
one
of
those
things
as
a
board
to
be
not
the
ppob
board,
but
it's
certainly
something
to
look
at,
but
the
retirement
boards
themselves,
who
are
looking
at
things
and
understanding
what
do
these
years?
What
do
they
mean
to
the
fund?
C
If
you
will
so
the
kind
of
big
big
picture
things
and
to
think
about,
as
I'm
sitting
here
thinking
about-
and
I've
talked
to
some
of
you
all
in
the
past,
but
what
happens
when
these
funds
hit
100
plus
funded
yeah?
You
know,
don't
know
for
sure
when
that
will
happen,
how
it
will
happen,
but
we
certainly
have
three
funds
that
are
there
now
we've
changed
benefits
we're
fully
funding
the
ark
in
the
case
of
trs
the
arms
more
than
the
full
arc.
C
In
the
case
of
kppa,
you
eventually
get
down
to
a
point
like
kers
hazardous
for
retiree
health.
The
adc
is
zero,
but
you're
still
going
to
have
surplus
assets,
and
so
when
those
things
happen,
folks
are
going
to
have
questions
of.
What
do
you
do
with
that?
You
know:
do
you
increase
benefits?
Do
you
reduce
the
employee
contribution
rate,
the
summer
pain,
but
those
questions
will
pop
up
and
I
don't
bring
that
up
to
tell
you
one
way
or
the
other.
Just
I
get
constituent
requests
too.
C
Those
questions
will
pop
up
much
like
senate
bill.
209
popped
up
this
last
year.
In
the
case
of
trs,
you
have
these
fixed
contributions
that
don't
change
until
there's
a
legislative
change,
except
for
the
case
of
the
shared
solution
for
the
under
65
retirees.
But
when
that
fund
becomes
100
funded,
there's
probably
going
to
be
a
lot
of
folks
that
want
to
see
their
contribution
go
down,
and
so
there's
going
to
be
a
question
of
how
does
this
work?
C
But
when
we
talk
about
those
contribution
rates,
a
good
rule
of
thumb,
every
one
percent
is
35
million.
So
whether
it's
a
increase
in
the
compensation
employee
has
a
reduction
in
what
the
school
district
pays
in
or
whether
it's
how
much
the
state
contributes
to
the
fund.
Those
things
have
some
real
dollar
values.
C
Certainly,
will
we
see
some
increased
assumption
volatility
in
the
near
future
as
good
as
fy21
was
fy22
if
you've
looked
at
your
portfolio
has
not
been
kind
to
anyone.
C
I've
quit
thinking
about
retirement
for
at
least
the
next
year,
not
that
I
was
retiring
in
the
next
year,
just
quit,
thinking
about
it
in
general,
and
then
certainly
we've
had
really
good
medical
inflation
experience.
You
know.
Are
we
going
to
start
to
see
that
creep
in,
as
inflation
generally
is
creeping
into
about
our
everything
that
we
do
right
now
and
then
you
know
this
is
one
of
the
interesting
things
the
medicare
eligible
premiums
are
are
very
different.
C
You
know
one
thing
that
popped
up
into
my
as
I'm
looking
at
this
is:
are
there
things
that
they
can
find
out
from
each
other?
You
know
what
have
you
done?
That's
creative!
What
can
they
learn
from
each
other,
but
also
like
how
do
their
plans
differ?
We
have
all
of
our
retirees
in
one
under
65
plan.
Our
over
65
plan
is
three
different
plans
that
are
out
there
as
well
too.
So
with
that
being
said,
I'm
going
to
stop
and
answer
questions.
B
A
C
It
so
kpba
would
have
one
way
of
doing
that.
Trs
would
have
one
way
of
doing
that.
Jfrs
would
have
potentially
a
different
way
of
doing
that.
It's
just
you
know
is
there.
Are
there
things
and
I'm
sure
that
they
talk
they?
You
do
talk
it's
kind
of
like
your
cousin
across
town.
If
you
will
they
do
talk,
it's
there's
the
you
know.
C
So
that's
one
question
I
think
one
thought
process
might
be.
Is
what
do
each
of
these
plans?
Look
like
you
know.
They're
gonna
have
different
claims
scenarios
out
of
each
one
because
their
populations
are
different.
You
know
male
female
versus
also
just
standpoint
of
health
status,
but
maybe
it
might
be
so
one
of
the
questions
we
talked
about
is
potentially
having
them
come
in.
Mr
chairman,
to
talk
a
little
bit
more
detail
on
some
of
these
questions.
C
B
A
Yes-
and
I
could
see
that
there
aren't
too
many
times
that
we
legislate
across
all
all
systems,
but.
B
B
C
So
so
think
about
five
dollars
a
month
towards
a
premium,
not
five
times,
twelve,
it's
five
dollars
for
each
year
of
service.
So
so
let
me
walk
you
through
it.
So
let's
say
right
now.
If
you'll
see
the
example
up
here,
let's
say
I
was
a
20
year
on
that
tier
1a
and
right
now
I'm
getting
20
20.99
a
month
for
my
20
years,
which
is
419.80.
C
C
A
A
So
this
is
a
good
that
was
a
good
bill.
It's
not
just
largesse
to
our
hazardous
duty,
employees
or
anybody
else.
It
was
to
increase
longevity,
keep
them
in
the
system
and
that's
how
we
will
lower
our
pension
cost
and
be
able
to
provide
services
and
I've
said
hazardous
duty,
but
that's
a
perfect
example
of
if
you
can
get
somebody
to
work
rather
than
20
years
or
22
years.
A
C
C
Just
one
they
haven't
booked
those
savings.
Yet
that
was
the
discussion
right.
That's
they
they're
waiting
to
see
what
the
experience
pans
out
to
be.