If pension changes announced by Gov. Matt Bevin on Wednesday become law, Superintendent Gary Fields of the Bowling Green Independent School District said he would be forced to retire well before his time.

“I know when I’m going to retire now,” Fields said.

Under a change to the Kentucky Teachers’ Retirement System, school districts can continue to provide payment for up to 30 percent of a retiring member’s accumulated sick leave and payments for accumulated sick leave will be used in benefit calculations for those retiring on or before July 1, 2023.

However, after that date, “payments for sick leave will not be utilized for benefit calculations,” according to a document released by Bevin highlighting the system changes.

Under another KTRS change, use of a member’s three highest paying years would change to their highest five years for members retiring after June 30, 2023, according to the document.

At only 55 years old, Fields said he’ll be facing powerful incentives to retire before he wants to.

“That’s a sad moment that I know that’s when my career ends,” he said, adding that decision is now before many state workers. Fields said he spent much of his Wednesday fielding calls and emails from concerned staff.

“A lot of them are having that moment right now,” he said.

Superintendent Rob Clayton of Warren County Public Schools said the sunset provisions for sick leave and a member’s highest three years could persuade teachers to head for the exits.

“There’s going to be a mass exodus when people are forced to make the decision of ‘Do I stay and give up the benefits,’ ” he said. “Those individuals will be retiring in order to not lose a promised benefit.”

Shift to 401(

k

)-style plans

Under the changes, new teachers and those who meet the retirement threshold of 27 years of service after July 1, 2018, will move into a defined contribution plan, including an option to max out 18 percent of their salary.

Employee contribution will be 9 percent, with an option to contribute an extra 3 percent, according to the document.

Employer contribution will be at 6 percent, with the state portion being 4 percent and the school district’s at 2 percent.

Current teachers who’ve met the 27-year retirement threshold by July 1, 2018, will have the option to get “three additional years or move into a Social Security replacement defined contribution plan,” with the contribution being 18 percent of their salary.

Capping benefits at 27 years, “in my opinion is going to lead to a mass exodus” of teachers, Fields said.

Clayton agreed, adding the change would worsen an existing challenge in finding high-quality staff.

“It would definitely make the teaching profession less attractive to many individuals who are considering a number of professional career options,” he said. “Just to give you an example, we’ve got one certified science teacher coming out of Western Kentucky University in December.”

Kentucky is at least $33 billion short of money needed to pay retirement benefits over the next 30 years, according to The Associated Press. Some estimates put that much higher.

Fields said he resents lumping the comparatively more financially secure Kentucky Teachers’ Retirement System and the County Employees Retirement System in with other systems in worse shape. He described the proposed changes as radical, and said they’ll hurt the teaching profession.

“Putting new hires into this defined contribution plan will not be an incentive to entice kids who are heading off to college to get degrees to head into the education profession,” he said.

Sam Evans, dean of the College of Education and Behavioral Sciences at Western Kentucky University, said the aspiring teachers will need to change their expectations going forward.

“Moving to a 401 (k) pension system for individuals coming into the profession will be a cultural change,” he said. “It’s going to be a huge shift.”

Although Evans said most of the college’s education students seem more focused on short-term goals, such as graduating and getting into the classroom, it’s a reality they won’t be able to ignore.

“It’s going to force us to be more mindful of how we prepare for our retirement,” he said.