Resolution Urges Metro Separation from State Retirement System
Thursday October 24, 2013
FOR IMMEDIATE RELEASE
MEDIA CONTACT: STEPHEN HAAG, JR
574-1204 / 645-1752
DATE: OCTOBER 22, 2013
Louisville, KY – Councilman Jerry T. Miller (District 19) has filed a resolution at the Louisville Metro Council requesting the Kentucky General Assembly revise Kentucky Revised Statute 61.645 to administratively separate the County Employee Retirement System (CERS) from the Kentucky Retirement System (KRS.) This resolution also requests that CERS be made independent of the KRS board with its own Board of Directors.
Metro retirement costs have risen from 6% of General Fund revenue to over 15% in the last 8 years. Miller believes that Governor Beshear was dead wrong last March when he stated that the pension reform bill passed last spring “will make Kentucky’s pension system one of the healthiest in the country”. Miller stated, “our costs continue to skyrocket in part because KRS is making decisions based on the KERS plan covering state employees, which is the second worst funded in the nation”.
“CERS is being overcharged by at least 30 percent. Louisville Metro could save as much as $10 million annually if CERS were separated and managed professionally.”
– Councilman Jerry T. Miller, District 19
“KRS enters into high-risk illiquid investments in hopes they can earn their way out of this crisis. Louisville Metro’s retirement funds should not be put at risk in foreign currency speculation schemes, such as those that cost KRS $10 Million in 2012.”
– Councilman Kelly Downard, District 16
Seven Counties Services, which participated in KERS, filed bankruptcy last summer to shield itself from its exploding pension costs. Miller states “KERS is a sinking ship that threatens the financial future of Metro Louisville and its retirees. The sooner CERS is freed from that titanic failure, the better.”
The resolution which is co-sponsored by Councilmen Ken Fleming (District 7) and Kelly Downard (District 16) will receive its first reading during the Metro Council’s regular Council meeting this Thursday, October 24, 2013. The resolution is expected to be heard during an upcoming meeting of the Intergovernmental Affairs Committee. A copy of the resolution is attached to this release.
Jerry Miller (R) 19