Public Pension Oversight Board discusses investment updates, options

FRANKFORT, Ky. (WTVQ) – The Public Pension Oversight Advisory Board co-chaired by State Representative Jim DuPlessis of Elizabethtown met today to discuss investment updates of the Kentucky Public Pension Authority (KPPA), the Kentucky Teacher Retirement System (TRS), and the Judicial Form Retirement System (JFRS).

The committee heard from David Eager, Executive Director of the Kentucky Public Pensions Authority. Eager explained that the performance is currently above the benchmark equal to $55.9M.

“The positive cash flow is due to the increase in the member contribution rate,” said Eager. “We aren’t sure of the liability yet. We should have an estimate by sometime in July. Though, going forward, we think that the direction is positive.”

Beau Barnes, Deputy Executive Secretary and General Counsel for the Teachers’ Retirement System, reported that Kentucky placed in the top 49% of the nation for the net quarter gain amount of 3.36%. Barnes explained the private equity did very well this quarter. Though, the international investment managers underperformed due to the portfolio focus on growth stocks.

Co-Chair of the committee, Representative Jim DuPlessis, R-Elizabethtown, brought up a convincing point regarding the outperformance generated.

“The teachers will get their contract payments regardless of the market payment. The taxpayers are the ones that are benefiting from the outperformance that generated $5.3 billion,” explained DuPlessis.

Committee member, Representative James Tipton, R-Taylorsville echoed the statement.

The committee also heard from Bo Cracraft, Executive Director of Judicial Form Retirement System. Following the request of the committee JFRS mimicked the KPPA form of updates. “The cash flow increased, driven by a strong performance,” explained Cracraft.

Another item up for discussion at the meeting was the Appeal Process of HB 8. Joe Dan Beavers, President and CEO of LifeSkills, Inc. spoke to the committee about the KPPA and their unwillingness to share data with mental health facilities. “The data is really important. We need to provide every relevant detail to our board to explain our decisions. As we get audited, we will need specific data disclosed to allow the auditors to understand what our responsibilities are,” Embry stated.

“The point of HB 8 is paying what you owe but that only works if you can trust what you’re paying. The goal was to make it fair and transparency helps do just that,” explained DuPlessis.

For full details of the meeting, please visit legislature.ky.gov or follow the link here for the meeting materials. To watch the full meeting, visit KET.org for archived footage.