The Piggy Bank is Almost Empty

Since the main stream media finds this topic a little difficult let’s again talk about the Kentucky Retirement Systems.

In my last post on retirement systems I talked about the less than average performance of investments. The investments by the retirement systems are the key to maintaining financially sound retirement funds.

But the less than mediocre investment strategy has been compounded by past governors and legislatures underfunding the systems.

So let’s talk about the Kentucky Retirement Systems.

Unless there are major changes made the retirement fund for Non-Hazardous employees (most state employees) will be exhausted sometime between 2019 and 2021. The insurance fund for these former employees will be bust in 2013 or 2014.

So how much money would it take for Legislature to catch up to what it should have contributed?

KRS needs $315 million additional dollars per year to be fully funded. Now I don’t pretend to understand how actuaries do what they do. But I do understand that past legislatures and governors have robbed Peter to pay Paul and the bill is coming due. The longer they wait to do something the worse it gets.

The state doesn’t have a spare $315 million every year. If we did the bozo’s in the legislature would be building parks and naming them after themselves.

So why should the average tax payer care if those feeders at the government trough get screwed when they retire?

Simple, there is a contractual obligation by the Commonwealth of Kentucky to pay the retirees.

If the retirement fund doesn’t do it then the money comes from the General Fund. That means taxes go up. Now the legislature passing a tax hike to pay retired state workers is about as likely as the proverbial snow ball in hell.

Investments are the key, the state is not going to fund its’ way or tax its’ way out of this problem.

So the question now for our new governor is whether he trusts the clowns that got us in this mess or does he make some meaningful changes to the way the retirement systems function and manage their investments?

Run Crit Run

Crit Luallen is running for the United States Senate. How far the campaign gets is another question.

Here’s what I see so far:

First, we have the draft Crit website.

Second, there is Crit’s speech after winning the Auditor’s race.




Third, there are senior staff members John Cubine and Ellen Hesen leaving the Auditor’s office for other jobs.

It sure looks like she is running to me and the Republicans aren’t doing anything to slow her down.

There is Mitch McConnell doing something stupid like putting Alben Barkley II in his campaign ad.

And then there is this gem from the Senate Democrats:



By the way, speaking of Mitch, when will he give the public an explanation of the circumstances surrounding his discharge from the military?