Crall Creep

At the end of the Fletcher administration here’s what I see and hear about the Kentucky Retirement Systems.

Brian Crall has filled the pension vacuum in this Fletcher lame duck period. Finance Secretary John Ferris and Budget Director Cowgill abandoned Fletchers Blue Ribbon Pension commission and Crall took over. Crall by his position as Personnel Secretary also has served nearly three years on the board of Kentucky Retirement Systems (KRS).

Just like his buddy Cowgill did at Council on Postsecondary Education, and John Draud at the Education Cabinet, Crall appears to be trying to burrow his way into the ($230,000 – plus annual salary) job as Executive Director at KRS before the administration ends.

A deal might be on the table that will block any negative information on investment returns (see prior posting Retirement Investments Suck). A white washed Blue Ribbon Commission’s final report could be exchanged for an Executive Director position. It would be in Crall’s personal interest, if named Executive Director, to help cover up all of the prior shenanigans as pointed out on this blog.

A Nov. 16th article in the State-Journal on the KRS board meeting gives a hint to their strategy to install Crall. After sitting vacant for over 8 months, just last week soon to be former Governor Ernie Fletcher appointed a Lou Reynolds of Oldham County to the KRS board to give another vote to put in Crall.

In the article the KRS staff seems to be trying to intimidate the board.

“General Counsel Eric Wampler reported that six trustees of the San Diego pension fund are facing criminal charges after being accused of misconduct.”

This suggests to the board that they have the ultimate fiduciary duty for any misdeeds of the staff. For its’ own personal interests the Board would want an executive director who will try to cover up. Who better than a fellow board member Brian Crall as an Executive Director who shares their interests in not letting embarrassing information out?

We have heard rumors the Finance Cabinet in an attempt to document the investment shortfalls has spent over $40,000 to hire nationally known public investment consultant, Callan. We have also heard rumors that both KRS and Kentucky Teachers Retirement System have both refused to give Callan information in the hope that Crall can kill the entire investigation.

According to the State-Journal the KRS board spent nearly $60,000 to hire a headhunter (Hudepohl) who has collected over 70 resumes in a National Search. It looks like Crall’s resume despite having no pension or investment experience will somehow rise to the top of the pile.


However, there are rumors that several principled members of the Blue Ribbon Pension Commission will publicly resign and go public to the press. Maybe finally our local media and Auditor of Public Accounts will give this issue the attention it deserves.

Two other notes on KRS:

I hear Bill Hanes, current KRS Executive Director, has flown to Pennsylvania to interview for the retirement job there. Hanes believes that he will be getting that job. One has to wonder if there is any coincidence that Adam Tosh is from there and had ties to the Pennsylvania state government.

I also understand that Bill Hanes was very upset that I published his salary.

Mr. Hanes, the salary of public employees should be public; most are public, except when you work for the Kentucky Retirement Systems.