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WKU Asks for Court Ruling Against Kentucky Retirement System

WKU via wkyufm.org

  Western Kentucky University is seeking a declaratory judgment against the Kentucky Retirement System.  The feud relates to the pension benefits of former buildings and grounds workers.

In a budget-cutting move, WKU privatized all facilities and grounds services in August.  The school out-sourced 202 positions in a contract with Sodexo. 

After becoming Sodexo employees they were told by KRS that they would not be allowed to withdraw or roll over employee contributions the individuals made to the pension system while they were employed by WKU. 

The Kentucky Retirement System, which administers the Kentucky Employees Retirement System, views Sodexo employees as “common law employees of WKU” and should not be allowed to access the funds they contributed to the retirement system individually.  KRS also stated that WKU would be expected to pay pension contributions for Sodexo employees and those workers would also have to continue to pay the applicable employee contributions to KERS, despite their employment with Sodexo.

WKU is asking the court to declare that neither the school nor the former employees have further obligations to pay into the KERS and that they may have access to their retirement funds. 

"KRS is putting these individuals in financial jeopardy by holding hostage the retirement contributions to which they have a right," stated Thomas Kerrick in a news release.  Kerrick is representing the university.  The interim executive director of KRS, David Eager, did not immediately respond to a request for comment.

Lisa is a Scottsville native and WKU alum. She has worked in radio as a news reporter and anchor for 18 years. Prior to joining WKU Public Radio, she most recently worked at WHAS in Louisville and WLAC in Nashville. She has received numerous awards from the Associated Press, including Best Reporter in Kentucky. Many of her stories have been heard on NPR.
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