Public Pensions On The Agenda In Kentucky
Public Pensions On The Agenda In KentuckyPensions are expected to be on the agenda as Kentucky's General Assembly convenes for a legislative session that runs through March 30.
Under consideration: House Bill 258, proposed on January 13 by Rep. C. Ed Massey, a Republican. It would switch newly hired teachers to a hybrid pension plan, a step toward moving the defined benefit pension system over time toward a defined contribution plan. It would apply to educators who enter the Teachers Retirement System (TRS) after January 1, 2022.
Also on January 13, Massey also introduced House Bill 8, which would change the method for determining employers' contribution to amortize the unfunded actuarial accrued liability among employers in the KERS Non-Hazardous System. Currently employers contribute a percentage of their covered payroll; the proposed legislation would allocate a dollar contribution amount that is based on the percentage of the System's total actuarial accrued liability that is attributable to each employer's current and former employees.
In other news from the Bluegrass State, the Kentucky Retirement System has welcome a new chief investment officer, Steven Herbert. He arrives as the KRS is preparing to be split into three board systems. Effective April 1, one board will oversee the two separate plans for state employees and state police; the second will oversee county plans; and the third will oversee ongoing and administration and investment management of the entire system.
Chief Investment Officer reported that one of the first steps for Herbert will be to determine how to split up assets that previously belonged to a single trust. These assets include illiquid funds allocated among 70 private equity managers.
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