pensions

Politics
9:50 am
Wed July 16, 2014

In Lawsuit Response, Kentucky Pension System Argues Investments Were Legal

Credit Wikipedia Commons

The troubled Kentucky Retirement Systems pension is firing back at a lawsuit filed by a small Northern Kentucky town over what it alleges are “high risk investments."

In June, the city of Fort Wright — population 5,700 —filed a lawsuit against KRS over investments into Wall Street hedge funds with public money, seeking $50 million to cover the losses and to divorce its city and county employees from the state system.

Earlier: Kentucky City Sues State Pension System

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Politics
5:53 pm
Wed June 25, 2014

Seven Counties Court Ruling May Increase Kentucky Pension Costs

Credit Seven Counties Services

FRANKFORT — Kentucky state government could face increased pension costs if a court ruling is allowed to stand, state lawmakers were told on Wednesday.

The ruling, which is pending appeal, said quasi-governmental agencies such as Seven Counties Services can abstain from paying into the ailing state pension system.

If the appeals court agrees with the ruling, the state would have to cover $2.5 billion in unpaid pension obligations, Kentucky Retirement Systems executive director Bill Thielen said.

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Politics
7:01 am
Tue May 20, 2014

Kentucky Pension Is Worst In the U.S., Credit Rating Agency Says

Credit File photo

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.

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Local News
7:00 am
Mon May 12, 2014

Louisville Public School Teachers To File Lawsuit Against State Over Unfunded Pensions

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A group of Louisville teachers plans to file a class-action lawsuit claiming the governor and Kentucky General Assembly violated a contractual obligation by deliberately underfunding the teachers' retirement fund by billions of dollars.

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Politics
5:19 pm
Mon May 5, 2014

Why 1 Kentucky State Pension is Outperforming the Other

Credit Wikipedia Commons

It was the best of pensions, it was the worst of pensions.

In 2013, the $14.5 billion Kentucky Retirement Systems' investment portfolio drastically underperformed its cousin—the Kentucky Teachers Retirement System—by about $1 billion.

Moreover, last year the KRS underperformed the average public pension's investment plan by about $500 million.

What's the difference?

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Politics
9:31 am
Wed February 19, 2014

Kentucky Juvenile Justice Department Feeling Strains of State's Pension Issues

Credit File photo

Kentucky’s pension woes are putting a strain on the Department of Juvenile Justice.

Commissioner Hasan Davis told lawmakers on the House Budget Review Subcommittee on Justice and the Judiciary this week that the Department of Juvenile Justice is struggling.

Years of employee attrition, program reductions and budget fluctuations have strained the agency.

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Politics
4:38 pm
Mon January 27, 2014

Kentucky Retirement Systems Director: State's Pension Debt is $17 Billion

Credit File photo

Kentucky's state pension systems are slated to have to pay out more than $17 billion that the state doesn't have.

That's according to William Thielen, who is director of the Kentucky Retirement Systems. Thielen testified before lawmakers in Frankfort Monday. He says the state's various pension funds have only a fraction of what they need to pay all potential retirees.

Thielen says if lawmakers make good on a promise to fund the pensions with the recommend amount, called the ARC, it'll take a few years before the unfunded liability starts to drop.

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Politics
9:58 am
Tue January 7, 2014

What to Expect from the 2014 Kentucky General Assembly

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As temperatures in Kentucky slowly climb out of the polar abyss, so too will state lawmakers emerge from their districts and trek to Frankfort for the opening day of the 2014 regular session of the Kentucky General Assembly.

The session starts Tuesday.

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Politics
6:20 pm
Thu February 7, 2013

State Senate Passes Pension Reform Recommendations

Credit File photo

The Kentucky state Senate passed a bill Thursday that would reform the majority of the state's pension system, 33-5. 

Senate Bill 2 reflects the recommendations of the legislative task force assigned to study possible solutions to the problem over the summer.

Cost of living adjustments would be suspended under the bill. The bill would also create a hybrid plan similar to a 401K whose rate of return would be guaranteed by the state.

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Politics
3:13 pm
Wed February 6, 2013

Pension Bill Passes Senate Committee, House Still Has Hang-ups

Credit File photo

FRANKFORT — An effort to reform Kentucky's underfunded pension systems passed in its first hearing Wednesday from a state Senate committee meeting.

Senate Bill 2 stems from the recommendations of a legislative task force that met over the summer to try and solve the pension problems.

It includes a suspension of cost of living adjustments and creates a new hybrid plan that acts like a 401K with a promised rate of return.

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