A bill to bring more transparency and oversight to the state’s retirement systems now heads for its final legislative hurdle after passing out of the House State Government Committee Thursday.
Senate Bill 2, sponsored by Public Pension Oversight Board co-chair Sen. Joe Bowen, would bring more transparency and oversight to the state’s retirement systems by making changes to board structures including gubernatorial appointments and requiring the systems to follow KRS Chapter 45A, the model procurement code, with a new compromise made with the systems that exempts their investment contracts.
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
- Added levels of investment experience requirements to serve on the boards of the systems
- Prohibiting the use of placement agents by the systems
- Confirmation of appointments by the Senate
- Uniform methods of reporting and disclosing investment fees
- Expanding legislative membership on the Public Pension Oversight Board
The Kentucky Chamber is a strong supporter of Senate Bill 2 and other legislation to bring more transparency and accountability to the pension systems as the state seeks to solve the issues of the woefully underfunded systems.
Senate Bill 2 now moves to the full House for a vote on the floor.