You might recognize this quote from the Morgan Freeman movie, Going in Style, about a company suspending pension plan leaving pensioners high and dry. It reminds of a day as a young store clerk a kid came in to buy a can of dog food. He was a nickel short so he tossed his money on the counter and ran off to feed his dog. I added the nickel to cover the cost. The pensioners rob the bank responsible for the pension plan woes taking only what is promised them.

What will the KY General Assembly and Governor decide to do? While the senate pension reform bill (SB1) is an improvement over the first proposal by the governor it still hits retirees and future retirees. The cost of living increase is decreased by half to less than 1% even though teachers paid 1.5% each pay for the cost of living increase. Health insurance is not addressed for those not of Medicare age even though in 2010 teachers agreed to start paying another 3% with the state promise to continue health insurance. (Depending on family coverage many of us still pay thousands each year in premiums)

While pension reform might be needed, do we maintain the promise made to retirees and near retirees or be Going in Style method. It would be much different to be at the start of the career and know the rules so you can decide not when it is over. You might not be aware but KY teachers are excluded from social security unless they earn it elsewhere. If they do qualify, it is called “windfall profits” and so the amount eligible is reduced by at least 60%.