Kentucky’s public pension system, which officially faces an $18.1 billion unfunded liability, might be in worse shape than previously thought.
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 the Kentucky Retirement System 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 Kentucky Retirement System 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, the Kentucky Retirement System will select a company to perform another assessment of its financial health.
Source: AP
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