Pension plans are a guaranteed promise to retirees that dedicate to a career in public service. Many individuals and families depend on these pension plans as means for retirement. For theses thousands of individuals and families relying on the public service package, it is unsettling to find the majority of state pension plans are not adequately funded. In 2016, Kentucky funding ratio is at 30.9 percent with a total pension liability of $243.6 billion. The widening gap in pension obligation funding meets either by strong investment returns or by taxpayer monies.
A recent study reports pension liability in 2016 is north of $4 trillion for year 2016. This mounting figure is the accumulation of a kick the can down the road approach to funding pension obligations. It is crucial to offer security to the pensioners and not depend on the future generations to make up the difference. As the funding gap widens the more unstable the pension plans become causing unease for retirees and taxpayers that ultimately left with the burden.
Local and state governments must secure the pension plans and fulfill obligations rather than leave taxpayers on the hook. Public employees around the country dedicated to serve their communities should not be concerned their pension fund will not be there when they retire. It is time to protect and fund pension obligations.