Why Kentucky pensioners can no longer count on pension insurance
Pensioners can count on a Kentucky pension insurance fund that has already received $6.5 billion from the state’s government.
The Kentucky Department of Financial Services said Thursday that it will cover up to $6,569 in pension contributions for each Kentucky state resident over age 65 and an additional $3,000 in contributions for any dependent children who live in Kentucky.
The money will be paid in monthly installments starting July 1, 2019.
The pension plan is set up to cover retirement and disability benefits for those who are 65 or older and who are either disabled or retired.
Kentucky is the only state that has not invested in a pension insurance program, according to the state.
The state is set to invest in the Kentucky Pension Investment Trust Fund, or KPUF, on July 1.
The fund, which was created in 2018, will be able to cover about $3 billion of liabilities.
It is expected to be operational by July 2019.
State Treasurer Ron Estes has called for Kentucky to adopt a state-wide pension fund and to invest the funds in private companies.
The state has a total of $9.3 billion in investments, including $1.2 billion in bonds.