For those of you who need a refresher, the KRS is comprised of the following:
-CERS, which is comprised of employees of our county and city governments. CERS is sub-divided into Hazardous Duty and Non-Hazardous Duty.
-KERS (Kentucky Employee Retirement System), which is comprised of employees of our state government. KERS is also sub-divided into Hazardous and Non-Hazardous Duty.
-SPRS (State Police Retirement System), which is comprised of the Kentucky State Police.
KRS as a whole is currently managed by a single board. This board is responsible for managing the system and its investments.
After careful deliberation and consideration of all that is at stake with the pension crisis, the Kentucky State FOP Lodge is endorsing the plan to separate CERS from KRS that was outlined in Senate Bill 226 of the 2017 General Assembly (SB 226).
Under those terms of separation, CERS would essentially continue to function as it currently does: most notably, the benefit structure and the Inviolable Contract would remain unchanged. There were no proposed changes to Tier 1, 2, or 3 in the bill language that we are supporting.
The only functional change would be that CERS would no longer be governed by a large board where CERS only has 35% representation (currently). A new and smaller board would be created made up of ONLY CERS members. This would give CERS members control of a system and board containing only CERS members. Actuaries predict that allowing CERS to separate could allow it to thrive and be fully funded by 2043.
For our members who are not in CERS: THE INVIOLABLE CONTRACT THAT WE ARE DEFENDING PROTECTS ALL BRANCHES OF KRS, INCLUDING KERS. Our message is consistent for all future members: any further erosion of benefits will cripple recruitment and retention and that a 401k system as a primary retirement plan DOES NOT offer a secure future.
Know Your Legislators
Get to know your elected officials and make sure you are registered to vote! Having an engaged and active membership is crucial to our future success in fighting to keep the few benefits we have left and to regain ground in the areas where we have lost ground in the recent past. The Kentucky State Lodge needs everyone to reach out and get to know your State Representative and State Senator is so that they will know that we, as the FOP, will hold them accountable when it comes to our issues.