Pension Board To Discuss Bankruptcy Ruling
The Kentucky Retirement System Board of Directors will have a private meeting today to discuss a recent bankruptcy ruling that could threaten the financial future of the system and its 300,000 participants.
A federal bankruptcy judge ruled last month that "Seven Counties", a private community mental health center that has filed for bankruptcy, is free to leave the Kentucky Employees Retirement System. State officials fear the decision will allow other community mental health centers to also leave the system and require taxpayers to cover the cost.
The Kentucky Employees Retirement System is the worst funded major public pension system in the country, according to Fitch Ratings, with an unfunded liability of $17.1 billion.