Gov. Matt Bevin has hired a private consulting company to audit Kentucky’s struggling public pension systems, which have more than $35 billion in unfunded liabilities.
In an announcement Monday, Bevin says Philadelphia-based PFM Group will lead a review of Kentucky’s Employees Retirement System, Teachers Retirement System and Judicial Form Retirement System.
“Reforming the state’s ailing pension systems is one of this administration’s top priorities,” said Bevin. “The findings that will come from this pension fund audit will accurately identify our actual pension liabilities. It is our intention to shine the antiseptic light of transparency on the country’s worst funded pension system and financially secure the pension system for generations to come. Kentucky taxpayers, retirees and current employees deserve nothing less.”
In June, the Republican governor abolished the Kentucky Retirement System Board of Directors and instated new board members.
A recent S&P Global Ratings survey finds that the Commonwealth has the lowest ratio of money needed to make payments to current and future retirees amongst all other states.
PFM’s two-year $556,300 contract also extends the firm a more than $50,600 allowance for travel and expenses.
PFM must give a final report by December 31st.
