Your KTRS "DB Plan"
"Defined Benefit Group Retirement Plan"
Ensures Against Outliving Your Benefit
A Message from the Executive Secretary
Gary L. Harbin, CPA
Your KTRS "DB Plan"
"Defined Benefit Group
Retirement Plan"
Ensures Against
Outliving Your Benefit
Members Should
Retain Annual
KTRS Workshops are
"Tailor-Made" for Our
Your Life Insurance
Beneficiary and
Retirement Account
Beneficiary ... Are
Yours Current?
Deadlines for the
Purchase of Service
Minimum Distribution
Retirement 101
Workshop or
KTRS Jeep Retired
From Service
All across America the baby boom generation is
starting to think about retirement. Many of these
Americans with defined contribution accounts
(like 401(k) accounts) are coming to the stark
realization that they have not saved enough
money. In a 2009 article titled "Why It's Time to
Retire the 401(k)", Time Magazine noted that
46% of all 401(k) accounts have balances less
than $10,000. With such meager savings for
retirement, many Americans are at substantial risk
for outliving their retirement money and thereafter
suffering poverty, dependence, and a loss of
dignity in the last years of life.
For a person relying on a 401(k) account, how
much money will they need to save to remain self-
sufficient for their life? That is a fairly standard
calculation if they know they will die on or before
their 74th birthday. The much more difficult
calculation is trying to figure out how much money
they will need if they live beyond normal life
expectancy. What if they live well beyond normal
life expectancy to be 85, 95, or maybe 105 years
The idea of living until 105 may not be as
absurd as you might think. KTRS's most senior
retiree is 107 years old and has received a monthly
pension benefit from KTRS for over 40 years. As
you can see from the chart, KTRS has 59 other
retirees over 100 years old. There are over 5,200
retirees ages 80 through 99 years old. Unlike
those people with 401(k) accounts, KTRS
retirees will NOT outlive their benefits.
KTRS is a Defined Benefit Group
Retirement Plan or what is commonly called a
"DB Plan." It provides true retirement security for
your lifetime. It also provides ancillary benefits
such as disability benefits if you become disabled
prior to normal retirement.
DB Plans operate similarly to insurance policies
by pooling "longevity risk" and carefully
monitoring the average life expectancy and the
amount of funds that need to be collectively set
aside for retirements...no more, nor no less. This
type of risk sharing mechanism eliminates the
possibility of outliving retirement savings.
DB Plans also operate in an efficient manner
for both the retiree and the taxpayers of the
Commonwealth. Studies have also shown that on
average, DB Plans can negotiate lower investment
fees and enjoy higher investment returns than
individuals do with their 401(k) accounts. As a
long-term, group investor, rather than an
individual, short-term investor, DB Plans can
afford to invest in a more diversified portfolio and
have a greater capacity for riding out periodic
downturns in the market.
KTRS provides members with efficient pooling
of longevity and investment risk. Members' assets
are professionally managed at a very low cost. All
of these reasons make the KTRS "DB Plan" the
most secure retirement system for Kentucky's
educators, most of whom do not participate in the
federal Social Security program and therefore rely
primarily upon KTRS for their retirement
security. KTRS's efficient, effective, and secure
plan stands in severe contrast to the substantial
social risks and high costs associated with 401(k)
Age 100 years old or more 37 60
Age 95‐99 years old 266 250
Age 90‐94 years old 758 712
Age 80‐89 years old 3,687 4,297
TOTAL RETIREES 4,748 5,319
Dec 31, 2011 Jun 30, 2012


Members Should Retain Their
Annual Statement
During your working career, your Kentucky Teachers’
Retirement System Annual Statement is one of the most
important retirement planning documents you will receive
from our office each year. The KTRS Annual Statement
shows how much service credit you earned during the last
fiscal year and your accumulated salary and service credit.
The annual statements for fiscal year ending June 30,
2012, were mailed the latter part of October. Please pay
particular attention to the total service credit ending
balance at June 30, 2012. Members are entitled to receive a
full year of service credit if they have no more than five days
without pay during a year. If you think your account may
have an error, please contact your employer, as
employers furnish the salary and service credit reflected on
your statement. Your employer will then notify KTRS of
errors and/or omissions that need to be corrected. If needed,
a new annual statement will be mailed to you. Personal
payments received in this office after June 30, 2012, will not
be shown on your 2012 statement. Please keep your
statement for future reference.
Retirement 101 Workshops
Registration 4:30 pm
Workshop 5:00 - 7:00 pm (Local Time)
Pre-Retirement Seminars
Note Different Times for Each Seminar!
December 3, 2012
Holiday Inn
7905 Freedom Way
Florence, KY
November 17, 2012
Cumberland Falls SRP
7351 Hwy 90
Corbin, KY
8:30 am
9:00 am – Noon
(Local Time)
The Retirement 101 Workshop and the Pre-Retirement
Seminars are a great way to help you learn more about your
retirement system and how it affects you, no matter what
stage in life you are entering!
The Retirement 101 Workshop (which replaces the
previous Mid-Career Planning Workshop) primarily targets
members with time to plan for retirement. Our workshops
include valuable information on the advantages of your
Defined Benefit Group Retirement Plan, ways to increase
your monthly retirement benefit, how to select a retirement
date, recognizing the value of your sick days, and the legal
importance of protecting the benefit you have acquired.
Workshops also provide updates on legislation and its
impact on the member and KTRS. There will also be a
representative from Kentucky Deferred Compensation who
will address supplemental income options. Come join us and
start planning your “Smart Retirement”.
The KTRS Pre-Retirement Seminars are developed to
help those members who are within 3 to 5 years of
retirement. KTRS is dedicated to helping you make your
retirement process an easy and exciting transition as you
approach your retirement date. Topics range from pre-
retirement debt reduction to ways to increase your service
credit. We include a guideline of requirements and
documents you will need within twelve months prior to
retirement. Other subjects of discussion include retiree
health insurance, how to calculate your retirement income,
and returning to work after retirement. There will also be a
representative from Kentucky Deferred Compensation who
will address supplemental income options, as well as what to
do with the money you are going to receive for your sick
leave payment at retirement. On most occasions, a
representative from the Kentucky Retired Teachers
Association (KRTA) attends to explain the benefits you will
have as a future retiree.
KTRS offers these free workshops and seminars to
members throughout the year which are held in many
locations around the state. Check our website, select a
date and REGISTER ON-LINE for all workshops and
KTRS is committed to making your retirement process a
smooth transition! Since 1938, KTRS has provided
retirement security for Kentucky's educators with a
Defined Benefit Group Retirement Plan.
December 5, 2012
Capital Plaza Hotel
405 Wilkinson Blvd
Frankfort, KY
5:00 pm
5:30 pm – 7:30 pm
(Local Time)
KTRS Workshops and
Seminars are "Tailor-Made"
for Our Members
December 10, 2012
Carter Caves SRP
344 Caveland Dr
Olive Hill, KY