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Kentucky Pension System’s Woes Could be Worse Than Previously Thought
By: Associated Press
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FRANKFORT, Ky. (AP) – Kentucky’s public pension system, which officially faces an $18.1 billion unfunded liability, might be in worse shape than previously thought.
The Lexington Herald-Leader reports the bigger potential problem means taxpayers could be on the hook for more money to honor pension commitments to about 365,000 public employees.
Kentucky Retirement Systems board chairman John Farris told fellow trustees Thursday that KRS made math errors in recent years. He says it relied on overly optimistic assumptions about its investment returns, growth of state and local government payrolls and the inflation rate.
Some KRS trustees say they thought the assumed numbers were correct because the agency’s actuarial adviser did not balk when it received them. In coming weeks, KRS will select a company to perform another assessment of its financial health.