Kentucky Pension Board Delivers Recommendations to Lawmakers

Last year, Kentucky lawmakers established a Public Pension Oversight Board – a group made up of lawmakers, experienced financial analysts and state officials.

The Board’s mandate is to “review, analyze, and provide oversight” to Kentucky lawmakers on matters of benefit administration, pension funding and retirement legislation.

On Thursday, the Board delivered 23 recommendations to the state General Assembly.

Details from the State Journal:

The Public Pension Oversight Board had its last meeting Thursday making 23 recommendations, which included how the General Assembly should proceed in fixing the billions of dollars in unfunded liabilities for the state’s pension systems.

[…]

Out of the 23 recommendations by the Public Pension Oversight Board, the most notable ones would be those legislative recommendations.

The board recommended the General Assembly should evaluate the KTRS workgroup findings in finding a funding solution; both the General Assembly and Gov. Bevin should include contribution rates from the state based on the new KRS assumed rate of 6.75 percent; legislation should be enacted requiring Senate confirmation of both KRS and KTRS executive directors and all non-elected board members; placement agents disclosure policies and the General Assembly provide funding for a performance audit of KRS that would be conducted by state auditor-elect Mike Harmon.

“We will be pushing for a performance audit of all the retirement systems,” Harmon said. “We will be getting with the governor’s people and try to determine what direction we will take in that regard.”

The Board learned on Thursday that the funding ratio of the Kentucky Retirement Systems (KRS) non-hazardous fund currently sits at 17.7 percent.

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