Retiree claims pensioners lack representation

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A former state worker says he’s upset that retirees lack representation on the Blue Ribbon Commission to study the state retirement, but Rep. Derrick Graham disputed that contention.
Tom Utterback says the 24-member commission includes lawmakers, administration officials, representatives of teachers and state employees, but not retirees.
"I think it’s an outrage," said Utterback who retired from state government in 1, after working in the Finance and Administration Cabinet since 5
Graham, D-Frankfort, however, disagrees. He said he thinks state retirees have a voice. In addition to several current retirees, the commission includes representatives from the Kentucky Teachers’ Retirement System and the Kentucky Retirement System, which includes state employees, county employees and state police.
The Blue Ribbon Commission appointed by Gov. Ernie Fletcher held its first meeting Monday and will report to Fletcher by Dec. 1. The commission is charged with developing recommendations to fulfill retirement obligations to current retirees and employees.
The commission does include several members who are retired from state government, including Lee Jackson, president of the Kentucky Association of State Employees. However, Utterback said nobody on the commission represents retirees as a whole.
But Graham said, "They are sensitive to the needs of retirees. Retirees do have a voice."
Fletcher addressed the commission Monday, saying there’ll be no changes to the retirement benefits for current employees and retirees.
"Important promises were made and it is incumbent upon us to keep them," he said.
However, Fletcher has asked the commission to examine what the appropriate level of benefits should be for future state employees.
"The committee’s charge is to focus on how we can meet those commitments and responsibly plan for the future," he said.
Retired state employee Brenda Rice said future employees should be last on the priority list when it comes to retirement reform. Rice also retired in 1 after working as a nursing home ombudsman since 9.
"They are phantom employees," she said.
Changing the benefit structure of future state employees could have a significant impact on the local economy, she said. Rice provides assistance to family members, donates to local charities and shops at Frankfort stores.
"It has a ripple effect that some businesses haven’t acknowledged yet," she said.
Bill Hanes, executive director of the Kentucky Retirement Systems, said approximately 95 percent of state retirees stay in Kentucky.
"It has a multiplying effect," he said.
According to the retirement systems, more than $1.1 billion in benefits are paid to 75,000 retirees, of whom 71,000 live in Kentucky.
Graham agreed and said changes to future benefits would have a serious impact on the standard of living in Franklin County because a significant portion of the population is retired from state government.
Approximately 5,500 retirees live in Franklin County and account for about 11.5 percent of the population.
According to the retirement systems, more than $134.6 million in retirement benefits are paid to residents of Franklin County each year. That’s second only to Jefferson County, where $.7 million in benefits is paid to 11,500 retirees each year.
In addition, the Blue Ribbon Commission conducted organizational business on Monday. Chairman John Farris, secretary of the Finance and Administration Cabinet, said the committee will form three working groups to address health insurance, examine benefits for future state employees and propose a way to fulfill current retirement obligations.
The next meeting is scheduled for 1 p.m. May 14 in a meeting room of the Capitol Annex. Representatives of the teachers’ and state employees’ retirement funds will give presentations then, and the working groups will also meet on an interim basis.