Kentucky Teacher’s Retirement System is a comparable sized retirement plan to the Kentucky Retirement Systems.
According to their 2006 annual report the actuarial value of the Teacher’s Retirement Plan was $14,857,641,238.00. Compare that amount to the actuarial value of the Kentucky Retirement Systems of $14,964,331,749 stated in their 2006 annual report.
The two systems are comparable in total actuarial value.
Salaries at Teacher’s Retirement were reported in the 2006 annual report as $4,890,745.00 and the total administrative expenses were $6,839,859.00.
Salaries at Kentucky Retirement Systems were reported in their 2006 annual report to be $13,041,000.00 and the total administrative expenses were $25,819,000.00.
As a point of comparison the budget for FY 2006 for the Auditor of Public Accounts was $9,652,700 and the FY2006 budget for the Attorney General was $25,014,900.
So here are today’s questions:
Why is there such a difference in the amount of money it takes to run Kentucky Retirement Systems and the Kentucky Teachers Retirement System?
Is it that much more complex to manage the Kentucky Retirement Systems? Both have memberships spanning the state.
Are the administrators at Teacher’s Retirement just better at their job?
Why are the administrative costs of KRS nearly $19,000,000.00 more than those for Teacher’s Retirement?