A bill being introduced to a Senate committee today could make a big difference to the budgets of regional universities in Kentucky.
If passed, House Bill 358 would allow higher education organizations and some other state agencies to leave the state’s pension system in exchange for paying off their share of the retirement debt over 25 years. The agencies would then be required to provide other retirement plans to employees.
The bill would also delay — for the second year in a row — massive increases in how much money regional universities and other agencies have to contribute to the pension systems.
Morehead State University President Dr. Jay Morgan says, like most university administrators, he has been monitoring the bill’s progress.
“The bill does have current language in it that would freeze KERS rates for one more year, which is very advantageous to Morehead State University,” Morgan said. “So, due to that, we hope that the bill passes with that language in it. The remainder of the bill, the part on the KERS buyout, is still yet to be seen if we are advantaged by it or not.”
Morgan says if the bill is passed, he would request an actuarial study to see what the economics for MSU looked like.
Critics of the measure say it would deprive the pension systems of much-needed funding.
Republican leaders of the legislature have said some version of the measure will likely pass, especially the delay of higher pension contributions.