Kentucky Teachers’ Retirement System, Frankfort, will conduct an “immediate” asset allocation study of the $15.6 billion system as part of recommendations made by Gov. Steve Beshear’s public pension working group.
The teachers system voted to conduct the study as well as adopt six other investment reforms recommended by the group, according to Jonathan Miller, finance and administration cabinet secretary and chair of the working group. Among them: adding four investment experts to the system’s board; requiring all board members to receive continuing education on current investment practices; and reviewing administrative regulations and eliminating those that “impair the pension systems’ ability to implement efficient investment portfolios,” a release from Mr. Beshear’s office said.
The working group also made recommendations to the $17 billion Kentucky Retirement Systems, Frankfort. KRS board members have said they have already implemented several of the working group’s recommendations and are studying the rest. Mr. Miller said KRS board members already agreed to do an asset allocation study and will be conducting one soon, and agreed to the continuing education recommendation. The KRS board also is studying the recommendation about having individuals with investment experience on the board, Mr. Miller said.
A report conducted by Hammond Associates for the working group found that the systems were underperforming the average of their peer group by more than $5 billion for the 10 years ended June 30.
“The board of KTRS looks upon these recommendations very positively,” Gary Harbin, executive secretary of KTRS, said in the release. “The board and staff have already implemented a number of these recommendations and will continue to work toward accomplishing other appropriate changes.”