A bill recently introduced in the General Assembly would reorganize Kentucky Retirement Systems. Proponents say HB 484 is needed to address a perceived lack of representation for the County Employees Retirement System, one of three systems under the umbrella of KRS. KRS is overseen by a 17-member board.
HB 484 creates a new, duplicative bureaucracy. It establishes a CERS board and another board to represent the Kentucky Employees and State Police systems. This will mean duplicate expenditures to hire another group of auditors, investment consultants and actuaries. Investment and custodial fees to manage separate fund portfolios will increase. Chief executive officers would be hired for each of the two boards. The total price tag is estimated at $3.6 million to $6.7 million.
An argument can be made that the current board is top-heavy with gubernatorial trustees. A simple fix would be to do nothing more than change the board’s representation. No muss, no fuss, and no spending millions of dollars for a system that needs to hold on to every nickel to ensure fiscal stability.
HB 484 should be defeated, and a more practical approach to board representation should be explored by all affected stakeholder groups.
Jim Carroll
President Kentucky Government Retirees
