Retirement benefits to increase by 2.3 percent

Frankfort, KY:  Governor Ernie Fletcher announced today he will provide an “ad hoc” cost of living adjustment (COLA) for members of the Kentucky Teachers Retirement System.

“The increase will benefit approximately 36,000 retired classroom teachers,” said Governor Fletcher.  “My goal is to help these former educators meet the increasing costs in health insurance in the same way that active teachers will be receiving a 1% increase in salary beginning January 1, 2005.”

The ad hoc COLA adjustment will be .8%.  When combined with the statutory COLA of 1.5%, retirement benefits will increase by 2.3%.  This is the same increase that the Kentucky House of Representatives proposed budget plan includes as well as the Senate’s new proposed health care legislation.

The increase will be reflected in the Governor’s Public Services Continuation Plan for the Second Quarter of Fiscal Year 2005, which begins October 1.  This brings the Fiscal Year 2005 increase in pension distributions to retired teachers to the same 2.3% increase provided to retired state employees.

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