Kentucky and Tennessee share more than a long border — information about public pension plans in both states is hard to come by too. And that may not be changing any time soon.
Kentucky
Many public pension systems in the Bluegrass State are underfunded — some badly — and information about them is as hard to come by as reserves to draw upon, according to the Lexington Herald-Leader. Leaders and participants alike seek more information about the plans and their finances.
The Lexington Herald-Leader reports that in its next session, the Kentucky General Assembly will consider expenditures and debt amounting to billions in order to support the pension plans serving state employees, including teachers. And the need is there: the Kentucky Teachers’ Retirement System is 52% funded, and the Kentucky Employees Retirement System has a sobering 21% funded status.
But it appears that not everyone in Frankfort is ready to simply write a check without first finding out more about just what their investment is going toward. And that reticence is bipartisan: Rep. Jim Wayne (D-Louisville) and Sen. Chris McDaniel (R-Taylor Mill) are among those who want more sunshine on the management of public pension plans and their dealings with outside managers and agents.
Wresting information about that may not be easy, since Kentucky law affords public pension plans some secrecy in their operations. For instance, they can withhold information about how much individual retirees collect, as well as the fees they pay to outside investment advisers and individual hedge fund managers. Bills submitted to require that the public pension plans disclose more information have failed so far, and the Herald-Leader reports that Brent Yotts (D-Greenville), who serves as House State Government Committee Chairman, is not likely to consider such legislation in the next session.
Tennessee
In the Volunteer State, the Metro Council that serves Nashville and Davidson County has allowed a mechanism intended to study the pension system of the Metropolitan Government of Nashville and Davidson County to die. The Tennessean reports that the council in November voted 17-16 against a proposal that would have allowed the Study and Formulating Committee to continue its work through March 2015. The committee’s one-year term of service ended in November 2014 before it had completed its mandate.
The Service Employees International Union and critics who feared the committee’s work would result in benefits cuts found fault with the committee for choosing the Pew Charitable Trust to review the pension system. In its preliminary findings, Pew said that the plan is fiscally responsible but that it has $2.3 billion in unfunded liabilities. The Metro Council’s refusal to extend the committee’s existence has prevented the release of the final report about the plan.
Mayor Karl Dean (D) plans to resubmit the names of the committee members for reappointment; the council is set to vote on Dec. 16.
Kentucky
Many public pension systems in the Bluegrass State are underfunded — some badly — and information about them is as hard to come by as reserves to draw upon, according to the Lexington Herald-Leader. Leaders and participants alike seek more information about the plans and their finances.
The Lexington Herald-Leader reports that in its next session, the Kentucky General Assembly will consider expenditures and debt amounting to billions in order to support the pension plans serving state employees, including teachers. And the need is there: the Kentucky Teachers’ Retirement System is 52% funded, and the Kentucky Employees Retirement System has a sobering 21% funded status.
But it appears that not everyone in Frankfort is ready to simply write a check without first finding out more about just what their investment is going toward. And that reticence is bipartisan: Rep. Jim Wayne (D-Louisville) and Sen. Chris McDaniel (R-Taylor Mill) are among those who want more sunshine on the management of public pension plans and their dealings with outside managers and agents.
Wresting information about that may not be easy, since Kentucky law affords public pension plans some secrecy in their operations. For instance, they can withhold information about how much individual retirees collect, as well as the fees they pay to outside investment advisers and individual hedge fund managers. Bills submitted to require that the public pension plans disclose more information have failed so far, and the Herald-Leader reports that Brent Yotts (D-Greenville), who serves as House State Government Committee Chairman, is not likely to consider such legislation in the next session.
Tennessee
In the Volunteer State, the Metro Council that serves Nashville and Davidson County has allowed a mechanism intended to study the pension system of the Metropolitan Government of Nashville and Davidson County to die. The Tennessean reports that the council in November voted 17-16 against a proposal that would have allowed the Study and Formulating Committee to continue its work through March 2015. The committee’s one-year term of service ended in November 2014 before it had completed its mandate.
The Service Employees International Union and critics who feared the committee’s work would result in benefits cuts found fault with the committee for choosing the Pew Charitable Trust to review the pension system. In its preliminary findings, Pew said that the plan is fiscally responsible but that it has $2.3 billion in unfunded liabilities. The Metro Council’s refusal to extend the committee’s existence has prevented the release of the final report about the plan.
Mayor Karl Dean (D) plans to resubmit the names of the committee members for reappointment; the council is set to vote on Dec. 16.
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