HEADLINES : Kentucky
Investment returns fall short at state pension funds, raising concerns
Kentucky's two public pension funds fell well short of their assumed rates of investment return over the tumultuous last decade, raising more retirement concerns for public workers - and for taxpayers who subsidize their plans.
The $14 billion Kentucky Retirement Systems, which covers 324,000 state and local government workers, expected a 7.75 percent rate of return but earned only 5.51 percent over the past 10 years. The $15 billion Kentucky Teachers' Retirement System, which covers 125,000 public school teachers, expected to earn 7.5 percent while getting only 4.8 percent over the past 10 years.
"In this climate, with everything so volatile - the stock market, bonds, real estate, really every area of investment - I think we have to admit that it's unrealistic to assume that we're going to get 7.75 percent a year," said state Rep. Jim Wayne, D-Louisville.
Filed Under : Pensions