The House State Government Committee passed Senate Bill 2 Thursday, a bill to bring additional transparency and oversight to the state’s retirement systems, with overwhelming bipartisan support.
The legislation, sponsored by Public Pension Oversight Board Co-Chair Sen. Joe Bowen, seeks to bring more accountability to the system by making changes to board structures including gubernatorial appointments, and requiring the systems to follow KRS Chapter 45A, the model procurement code.
Other changes to the three retirement systems, Kentucky Retirement System (KRS), Kentucky Teachers’ Retirement System (KTRS) and the Judicial Retirement System, include:
- Disclosure of fees and contracts
- Prohibiting the use of placement agents by the systems
- Confirmation of appointments and/or contracts by the Senate
- Uniform methods of reporting and disclosing investment fees
A committee substitute was proposed by House State Government Committee Chair Brent Yonts which would have stripped the legislation of many of the provisions pertaining to the model procurement code, appointments and more.
However, after debate over the substitute, the committee decided to take up Senate Bill 2 without amending the legislation.
Senate Bill 2, which is supported by the Kentucky Chamber, now heads to the House floor for a full vote.