WKU Public Radio News Staff
Mon May 5, 2014
Mixed Returns For Kentucky Public Pensions
Financial documents show that the Kentucky Retirement Systems dramatically underperformed last year, when compared to its cousin, the Kentucky Teachers Retirement System.
Last year, the Kentucky Retirement Systems' investment portfolio brought in about one billion dollars less than the Kentucky Teachers Retirement System.
According to Chris Tobe, a former trustee to the Kentucky Retirement Systems turned whistleblower, that means Kentucky is home to one of the best-performing public pensions, and, in the case of KRS, one of the worst.
“It really kind of tells you all the things wrong with the pension plan as far as administration. And all the right things to do,” said Tobe.
Moreover, last year the KRS underperformed the average public pension's investment plan by about $500 million.
Tobe says last year was such a bad year for the pension that KRS’ portfolio must outperform its projections for the next five years to make up for the hit.