Posts are ordered chronologically within a theme.
7 June 2015: Kentucky Pension Blues: What’s Up With ERS?
My first run-in with the awful awful numbers of Kentucky pensions. Eroding funded ratio (closing in on 20%), ramp up of required contributions — it’s ugly.
This one isn’t exactly about Kentucky… but it is. Kentucky (as of 2015) has the worst-funded pensions in the country. I talk about what funded ratios mean.
Well look at that. Kentucky ERS discounts at 7.75% and is 24% funded on that basis. But look down the list a little ways — Connecticut SERS is 41.5% funded, but it uses a higher discount rate of 8%. What would that funded ratio be if CT had to use the lower discount rate?
Yeah, maybe it will turn out that CT is even worse than Kentucky.
25 April 2016: The Woefully-Underfunded Kentucky Retirement Systems
A rundown of how badly funded Kentucky pensions are (it’s pretty bad), as well as a “pension reform hobbyist” who is a dermatologist being appointed as head of the pension board. As seen later, this does not work out, which does not surprise me given the stupid things he says about KRS.
19 May 2016: Kentucky update (and trying something new)
A bizarre day for pension governance in Kentucky — state troopers at a board meeting. I try out Storify, grabbing tweets from a Kentucky reporter… not sure I’ll be using Storify again.
The amateur that the governor appointed to replace the sacked chair of the board of the pension funds withdraws. Guys, it’s better to check the requirements for a position before you start appointing people….also, they double-down on hedge funds?
11 August 2016: Kentucky Pensions Update: Their Investment Returns Also Sucked
Awful returns for the prior year, but it’s also a long-standing problem. Slices out of the KY teachers fund, the county employees, and state employees. Somehow, 60% is fully-funded. At least for Kentucky. Oh, and there are lawsuits.
8 September 2016: Kentucky Pensions Update: Governance Woes
There are battles over the control of the KY pension funds, much of it being “worked out” via lawsuits.
A little political interlude as Republicans hold KY legislature and governorship, portending changes for 2017. Last half of post, on pensions, starts with the lovely headline “KENTUCKY PENSIONS: NOT AS BAD AS NEW JERSEY”. So they’ve got that going for them. Also, issues regarding the investment performance of the pension funds (including a lawsuit), as well as dumping hedge funds.
18 January 2017: Kentucky Pension Assets: Trends in ERS, County, and Teachers Plans
I take the three major pension funds in Kentucky and look at how their assets have behaved since 2001.
I take the three major pension funds in Kentucky and look at how their liabilities have behaved since 2001. I show why making required contributions does not necessarily lead to a fully-funded pension plan.
21 February 2017: Kentucky County Pensions: 60 Percent Fundedness and Decreasing is Awful
Kentucky County pension plan may not be as bad as Kentucky ERS, but it’s still pretty bad.
10 March 2016: Kentucky Update: They’ve Got Budget Blues, Too
Is it surprising that the state with the worst-funded pensions also has budget problems? Yes, a huge part of the budget problem are the pensions, but that’s not the only problem. Of course, the post is mainly about the pension shortfall… but heck, I need something for this category. ;)
27 June 2016: Good News for Monday: Locks Unlocked
Kentucky passes legislation (before the Republicans take over, mind you) that removes licensing requirements from hair braiders. Also, an awesome pic of the governor with hair braiders.
Kentucky legislature passes anti-union legislation in three bills, fulfilling election promises after 90+ years of Democrat-controlled House. Right-to-work, repeal of prevailing wage, and paycheck protection (from pay union dues) — oh my!
Connecticut Pensions: Pushing Off Payments Til Later Ain't Reform
Kentucky Pension Liabilities: Trends in ERS, County, and Teachers Plans
South Carolina Pensions: Investment Returns Recalc