A bill to ban Kentucky’s public retirement systems from using placement agents is on a fast track to a full vote in the Kentucky House of Representatives, according to the bill’s sponsor, state Rep. Mike Cherry.
The proposal was approved unanimously Thursday by the House State Government Committee and now heads to the full House for consideration.
Mr. Cherry, a Democrat, said in a telephone interview that the bill is a response to a state audit released in July, identifying roughly $15 million paid to placement agents by the Kentucky Retirement Systems between 2004 and 2009.
“We didn’t need to be spending $15 million for placement agents,” Mr. Cherry said. “You can’t convince me that we don’t have enough experts to make investments without having a placement agent.”
The bill would apply to the $13.9 billion Kentucky Retirement Systems and the $13.3 billion Kentucky Teachers’ Retirement System, both based in Frankfort.
Another provision of the bill that would have established term limits for public pension board members and the chairman was removed by the committee.
“(It was removed) in order to fast-track the legislation and get the placement agent issue out there,” Mr. Cherry said, noting he plans to reintroduce a bill on term limits in the next legislative session. The last day of the regular legislative session is March 22.