BY GENEVIEVE POSTLETHWAIT

Most Kentucky public school teachers will readily tell you they didn't get into teaching for the money.

They get into the profession because they love the job, they love the kids and they love the stability.

Kentucky teachers may not make big salaries, but a stable, reliable retirement at the end of their careers is an attractive part of the deal that helps balance the scales. Now, however, the Kentucky Teachers Retirement System (KTRS) that teachers count on is in peril, and teachers are worried.

"I feel like people that go into teaching, it's a calling," said Charlotte Benton, president of the Paducah McCracken County Retired Teachers Association. She taught business education at the former Reidland High School for 45 years before retiring in 2013.

"When teachers retire, they may realize they haven't made a great deal of money but the impact they've had on their students has been significant," Benton said. "Hopefully, they can also have a good, stable retirement. We don't want to lose that."

According to the latest analysis, KTRS has only 55 percent of the money needed to cover benefits for teachers over the next 28 years, and it faces $13.9 billion in unfunded liabilities.

The system sold off $650 million in assets last year to help pay out benefits and expects to liquidate another $750 million this year.

Last year lawmakers came close to passing a bill that would have authorized up to $3.3 billion in pension obligation bonds, the proceeds from which KTRS could use to pay benefits instead of continuing to sell off assets. The bill, introduced by Democratic House Speaker Greg Stumbo, also called for the state to incrementally increase its contributions to KTRS over a period of about eight years until it reaches full funding.

KTRS manages retirement for 72,246 active and 49,822 retired teachers. Even without any action from the General Assembly, the system won't run out of money for another two decades, but every year it goes underfunded, the problem will grow.

"We've kicked this can down the road so often, it's up against a wall right now, and we have to deal with it," said Sen. Danny Carroll, R-Paducah.

"The feeling that I get up here (in Frankfort) is that everything else at this point as far as our budget is kind of secondary to dealing with this issue. Everyone up here respects and wants to do all we can to help our teachers. Our most precious assets are in their hands every day at school. But it's got to be a realistic approach."

Though legislators are split largely along party lines about how to move KTRS back toward solvency, they at least agree that it needs to be addressed now, not later. Gov. Matt Bevin will deliver his budget address Tuesday, and the House, Senate and Governor's Office will negotiate from there.

Bevin is expected to suggest creating a separate 401k-style pension plan for new teachers, similar to retirement plans used in the private sector, while still honoring commitments to current employees. The governor's office hasn't released specifics yet on how Bevin's plan would fund those commitments.

Stumbo will refile his bill from last year to authorize up to $3.3 billion in pension obligation bonds and gradually increase state contributions to KTRS over a period of time.

"I voted last year for the speaker's bill, and I still support that plan," said Sen. Gerald Watkins, D-Paducah. "We have an obligation to take care of our teachers and live up to our commitment to fund their pensions. I just think, if you're going to attract quality, bright people to the teaching profession, we don't pay them a whole lot, they don't qualify for Social Security, so they need to have some confidence in their pension."

Benton noted that teachers aren't even eligible to receive full survivor's benefits through Social Security when their spouses die. When her husband passed away, she got one check for $250, she said. Her pension and personal savings are all she has.

"If my retirement is not sound, that's the only retirement I have to depend on," Benton said. "There are probably half or more of our retirees who are widows. They just have that one check."

Another big concern of Benton's and her fellow retirees and teachers is that if the legislature does away with KTRS and transitions to what they view as a less stable, less reliable 401k-style pension for Kentucky's teachers, Kentucky won't be able to attract the best educators.

"I tell you, a real concern of mine is that if they do this, there won't be any young people becoming teachers," said Arletta Kennedy, Kentucky Education Association-Retired vice president. Kennedy was a math teacher at Heath Middle School for 36 years.

"What young person is going to want to come to Kentucky to be a teacher? Or live in Kentucky and want to be a teacher?" Kennedy said. "What makes the future of Kentucky better is when our kids believe in an education and that what they're learning is important. And those who are providing that education ought to be compensated for what they do and taken care of."

Carroll, Watkins and their fellow legislators on both sides of the aisle agree with Benton and Kennedy - taking care of Kentucky's teachers is of the utmost importance. They just don't see eye-to-eye on how to go about it.

Carroll said he supports something closer to what Bevin will likely propose, a hybrid 401k system. He's wary of a plan like Stumbo's that would add any more debt, especially when the returns on bonds wouldn't be certain. It's too risky, he said.

Watkins acknowledged that taking on more debt doesn't sound all that appealing, but he said that in this case it makes the most sense for gaining stability and bringing in new funds. Plus, now is a good time to bond, he said, because interest rates are low and inching upward.

"There will be some negotiating between the House, Senate and Governor's Office on what the final budget's going to look like, but on the House side, we're going to go with House Bill 4, I'm quite sure," Watkins said.

"The majority did last session. And we're not going to cave on this issue. There's going to have to be some movement on the other side."