Kentucky Senators Want Authority to Confirm Pension Directors, Greater Transparency in Investments

A Kentucky Senate committee on Wednesday passed a bill that would give the chamber the power to confirm certain high-ranking pension officials.

More controversially, the bill would require full disclosure of all investment fees and contracts.

More from the Courier-State Journal:

The bill will require Senate confirmation of gubernatorial appointees on the KRS Board, Senate confirmation of the KRS executive director and that the system must disclose all fees and investment contracts associated with the funds it manages.

Furthermore, if the bill passes the House and is signed into law, open records exemptions shall “not prevent the disclosure of investment fees and contracts.”

[…]

Thielen spoke in opposition to the bill saying it would cause disruption in the retirement system board’s decision-making process, impose additional administrative cost to the system and create inefficiencies.

“The administrative costs in the grand scheme of things are not great. I have no idea how much it would be. I anticipate in excess of $100,000 because we would need to bring on another staff person or two depending on what it takes to meet the requirements,” Thielen said. “We haven’t budgeted for any increases (for this year)…so additional administrative costs could work a hardship.”

The bill would also usurp the authority of the KRS Board, Thielen said, and ultimately give the authority to the secretary of the Finance and Administration Cabinet could eliminate a KRS Board’s contract.

The bill comes days after Gov. Matt Bevin vowed in his budget proposal to conduct an independent audit of the state’s pension systems.

But Bevin also promised to give the systems a huge funding boost.

Photo credit: “Ky With HP Background” by Original uploader was HiB2Bornot2B at en.wikipedia – Transferred from en.wikipedia; transfer was stated to be made by User:Vini 175.. Licensed under CC BY-SA 2.5 via Wikimedia Commons