What does the Kentucky pension reform ruling mean for teachers?

The Kentucky Supreme Court on Thursday struck down a controversial pension reform law passed earlier this year, halting any changes to the beleaguered retirement system.

The ruling has wide implications for both current and future Kentucky teachers.

Here’s what you need to know:

‘Hybrid’ plans are out

The ruling scraps new retirement plans for future teachers. Under those plans, teachers hired after Jan. 1 would not have received a traditional pension but instead would have accrued their benefits through a “hybrid cash balance” plan.

Critics said that change would have caused new teachers to think twice about starting their careers in Kentucky.

With the law struck down, new teachers will continue to be placed in the state’s traditional pension system.

Sick days are back in

The pension reform law would have prevented current teachers from using any sick days they accumulate after Dec. 31, 2018, toward their pension benefits. (Though teachers would have been able to cash those days in when they retire.)

With Thursday’s ruling, teachers will continue to be able to use accrued sick days when determining their pension benefits.

By Mandy McLaren
Louisville Courier Journal