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    Entries in Kentucky (2)

    Tuesday
    Mar292016

    As Pension Prospects Worsen, Kentucky Lawmakers Spar Over Worst-Funded Plan

    Nowhere are the problems with pension funding more evident than in Kentucky, where the state lost millions because of the stock market. Lawmakers are now debating how to recover.
    BY  MARCH 29, 2016

    Amid new predictions that public pensions are facing another downturn, at least one pension plan may be heading toward life support.

    Since several plans' fiscal year started last July, the stock market has been extremely volatile. As a result, Moody’s Investors Service predicts pension plans are likely to report 10 to 50 percent increases in liabilities when they close out their 2016 fiscal years on June 30.

    The bad forecast comes just after most plans reported meager investment returns in fiscal 2015. The two-year hit, warned Moody’s, will effectively wipe out the funding progress that many plans made in 2013 and 2014.

    The situation could force governments to put in more money over the next few years than was previously forecast. That notion, in turn, could trigger lawmakers to discuss other solutions for funding pensions or ways to control future pension costs.

    Nowhere is this more evident than in Kentucky, where the state lost nearly $53 million in investments during the last six months of 2015 because of the stock market dip and lawmakers are now debating how to recover.

    For years, lawmakers have shorted the state's annual payment into the Kentucky Employees Retirement System (KERS). That's played a big part in turning the state employee plan into the worst-funded among the 50 states. As of last summer, it reported holding just 19 percent of the assets it needs to meet nearly $12.4 billion in total liabilities.

    Click to read more ...

    Monday
    Mar282016

    As Pension Prospects Worsen, Kentucky Lawmakers Spar Over Worst-Funded Plan

    Nowhere are the problems with pension funding more evident than in Kentucky, where the state lost millions because of the stock market. Lawmakers are now debating how to recover.
    BY  MARCH 29, 2016

    Amid new predictions that public pensions are facing another downturn, at least one pension plan may be heading toward life support.

    Since several plans' fiscal year started last July, the stock market has been extremely volatile. As a result, Moody’s Investors Service predicts pension plans are likely to report 10 to 50 percent increases in liabilities when they close out their 2016 fiscal years on June 30.

    The bad forecast comes just after most plans reported meager investment returns in fiscal 2015. The two-year hit, warned Moody’s, will effectively wipe out the funding progress that many plans made in 2013 and 2014.

    The situation could force governments to put in more money over the next few years than was previously forecast. That notion, in turn, could trigger lawmakers to discuss other solutions for funding pensions or ways to control future pension costs.

    Nowhere is this more evident than in Kentucky, where the state lost nearly $53 million in investments during the last six months of 2015 because of the stock market dip and lawmakers are now debating how to recover.

    For years, lawmakers have shorted the state's annual payment into the Kentucky Employees Retirement System (KERS). That's played a big part in turning the state employee plan into the worst-funded among the 50 states. As of last summer, it reported holding just 19 percent of the assets it needs to meet nearly $12.4 billion in total liabilities.

    Click to read more ...