A decision by Kentucky Retirement Systems to pay the legal fees of its former chairman as he sues Gov. Matt Bevin is drawing sharp criticism from the governor’s office. KRS, which manages pensions for state workers, is paying Louisville banker Tommy Elliott’s $50,000 legal bill from the lawsuit he filed against Bevin after he removed Elliott from the agency’s Board of Trustees. The suit was filed June 17 and was joined by KRS trustee Mary Helen Peter. The legal bills were obtained by the Kentucky Center for Investigative Reporting through a public records request to KRS. The reimbursement, ultimately borne by KRS’ roughly 355,000 pension holders, drew a rebuke from the Bevin administration.
State retirees and a member of the state Senate leadership are voicing sharp displeasure with a 25 percent raise given last Friday to the top official of the financially struggling Kentucky Retirement Systems.
Following media reports last year, Kentucky Retirement Systems promised more disclosure. Now, the pension plan for public employees is reporting its annual investment expenses are running 75 percent higher than reported in previous years.
Foiled in state court, a Jefferson County Public Schools teacher filed a federal court suit Monday claiming the Kentucky Teachers’ Retirement System illegally raised teachers’ share of pension contributions to shore up a retirement plan that is only half-funded.
The former manager of a New York investment fund holding $24 million for Kentucky Retirement Systems has pleaded guilty to charges that he looted $9.3 million from the fund and falsified its financial records.
In response to the Kentucky state pension plan’s willingness to pay hefty fees for billions of dollars in investments it can’t publicly disclose, one state representative said Thursday he is introducing a bill to make pensions subject to state open-access laws.
Kentucky Retirement Systems, which runs the $16 billion pension and health care funds for state, city and county workers and retirees, will be providing more detail about the fees it pays to the managers of its so-called “alternative” investments.