State Sen. Joe Bowen says there aren't many potential solutions to Kentucky's pension crisis.
Credit LRC Public Information
Analysts say Kentucky will need to hire more state employees or have them pay more into the retirement system in order to reverse the state’s pension crisis, painting a grim portrait of Kentucky’s main public pension system.
Lawmakers are promising legislation addressing issues raised in a state audit of the Kentucky Retirement Systems. The 118-page audit made 92 recommendations for strengthening Board of Trustees’ oversight and governance of the Kentucky Retirement Systems. The board manages investments of nearly $13 billion for 300,000 active and retired state workers. State Auditor Crit Luallen says the audit primarily focused on the use of placement agents, which she defined for House and Senate State Government Committee members.
State Auditor Crit Luallen says she found no evidence of wrongdoing in an audit of the Kentucky Retirement Systems. But Luallen says the audit does raise several areas of concern. The audit primarily focused on the use of placement agents, who act as middlemen to secure investments from entities like KRS. Placement agents have been at the center of "pay-to-play" scandals in other states, but Luallen says that does not appear to be the case in Kentucky.