The Kentucky Chamber of Commerce wants a full performance audit of the troubled Kentucky Retirement Systems.
Chamber President Dave Adkisson Thursday called on state Auditor Adam Edelen to look into KRS, which is rated as one of the most underfunded pension plans in the nation, with only about 45-percent of the assets needed to cover its retirement obligations.
Adkisson said his group is especially concerned about the burden placed on the actuary who advises the system.
“The assumptions they make lead to KRS recommendations, and a request for money that goes to the Governor,” Adkisson said during a conference call with reporters. “The Governor has to utilize that information to build his budget that goes to the legislature, and all of this is predicated on the assumptions of one actuary. And KTRS, the teachers’ retirement system, uses the same actuary.”
Adkisson says a KRS audit should also look into the amount of investment fees paid by the system, and how that compares to other states. An estimated 30-percent of KRS investments are held in hedge funds and private equity funds, which charge high fees and whose holdings KRS agrees not to reveal.
The Kentucky Chamber of Commerce is taking a firmer stand on conservative issues. Republican legislators have criticized the chamber in the past for supporting Democratic-led proposals like expanded gambling and a higher dropout age while staying quiet on so-called right to work and prevailing wage laws.