Governor addresses state's public pension crisis in Q&A on Facebook Live; says state will keep promises to people; won't take things from people "that have already been earned"

The Courier Journal, Louisville, Aug. 29, 2017

Gov. Bevin holds Q & A on Facebook Live to address state's public pension crisis
By Deborah Yetter

Gov. Matt Bevin took to Facebook Live Monday night for about an hour to make his case for reform of the state's underfunded public pension system and to answer questions people posted on his official site.

He assured people watching the Facebook presentation – many of them state employees, judging from comments that streamed in while he spoke – that workers and retirees have nothing to fear.

"There have been promises made and we are going to keep those promises," he said. "We are not going to take things from people that have already been earned."

Nearly 5,000 people had posted comments by the time Bevin's session ended, some favorable, thanking Bevin for tackling the pension crisis.

More: Bevin tells government workers he'll do his utmost to save pension system

More: Kentucky's pension crisis can't be solved with 401(k) plans, group says

"Great job, Matt!" said one.

But many posted critical or skeptical comments, including some who identified themselves as teachers.

"Useless, rich politician," said one. Others included, "Have a respectful conversation with teachers instead of degrading them" and "Hot air!"

Also came this inquiry:

"Do state workers get comp time for watching this, boss?"

Bevin's appearance came the same day that an outside consultant proposed sweeping changes to the state public pension system that is facing liabilities of more than $40 billion. The consultant recommended changes including cuts in retirement benefits for some current state and local government retirees and changing benefits for most current and future public employees to new 401(k)-style plans.

But Bevin, in his Facebook talk, insisted any plan would be done in consultation with state workers and would protect benefits they have accrued thus far.

"There will be no emergency clause," he said. "We are going to preserve the value of what you have earned."

Bevin, a Republican, said he expects the pension changes to be devised in a special legislative session this fall and that he will work closely with Senate President Robert Stivers and House Speaker Jeff Hoover, both Republicans.

Bevin fielded questions ranging from whether the state would consider using proceeds from the Kentucky Lottery to help cover pension costs to whether benefits of current retirees would be affected.

Lottery proceeds by state law are supposed to go for college financial aid, though in years past lawmakers routinely have dipped into the money for budget shortfalls in other areas.

Bevin didn't rule out the idea of designating lottery money for pensions.

"There is no immediate plan for such a thing but there is nothing that will not be considered," he said.

Bevin said he does not propose reducing benefits to retirees though one suggestion of the consultant was to take away cost-of-living increases awarded to state retirees from 1996 to 2012, a move that could result in significant benefit reductions for some.

His goal, he said, is to "not take away a pension from somebody who already has it."

Pensions for teachers, who do not get Social Security, accounted for several questions including whether teachers should be allowed to accumulate sick days and count them toward retirement. The consultant has suggested ending that practice.

Bevin didn't disagree.

"Are those days there to spike a pension or to cover when people are sick?" he asked.

He also brushed off a question about whether sweeping changes to the pension system might trigger a wave of retirements, responding to a comment that 40 percent of Kentucky's public school teachers are eligible to retire. Bevin said he didn't think that would happen but added that if a teacher chooses to do so "in your own self interest, that's something you probably should do."

And he rejected the idea raised by one questioner of raising taxes to help better fund the state's public pensions.

"Not if I can help it," Bevin said. "Raising taxes on people today to fix problems that were made by folks in the past, that's not the solution."

Bevin urged Kentuckians to contact their state senators and representatives to offer support for efforts to fix Kentucky's pension problems, assuring them lawmakers – who have particularly generous pension benefits – will not spare themselves.

"There is nothing that we are going to propose to any of our pension systems they would not propose for themselves," he said. "They are going to lead by example."