Tue May 20, 2014
Kentucky Pension Is Worst In the U.S., Credit Rating Agency Says
The credit agency Fitch Ratings has named one of Kentucky’s pensions as the worst in the U.S..
The non-hazardous pension under the Kentucky Employee Retirement System has about a quarter of the money it would need to pay out what will be owed to pensioners.
Todd Green is a senior actuary for Cavanaugh MacDonald, an accounting firm that examined five years’ worth of the state’s pension data. He says the pensions have been neglected and money hasn't been put in them and kept in them.
“The source of that is the prior underfunding, so it’s not, it’s an accumulation of lots of things that weren’t being done right," Green says.
Illinois’ State Employee Retirement came in second place, at 34.2 percent funding.
State lawmakers shored up about $100 million to put into the fund, but experts say much more is needed to get the pension back on track.