Anchorage,KY July 23, 2013 – Kentucky Fried Pensions is one of the most important books to come out on Kentucky Politics and Government in years. It attaches shame and blame to over a 1000 names in a 230 page volume covering both the investment and underfunding scandals related to the Kentucky pension crisis. It not only highlights KERS for State Workers the worst funded state plan in the country, but makes dire predictions for the Kentucky Teacher plan and County Plan as well. The author makes recommendations on how to restructure the plans to increase the odds of solvency.

Quotes from the Author in KFP
The Cause of the Kentucky Pension crisis was too much bipartisanship and too little transparency.

A public pension needs placement agents like a dog needs ticks.

The culture of corruption and cover up was not only reinforced by this APA audit, but it enabled KRS to continue in these practices.

The Kentucky Retirement Systems’ first hedge fund was a disaster from an investment and political point of view. It seemed that the prime objective was to maximize a kickback through a placement agent, not for the investment benefit of the plan.

With non-qualified Trustees, an open SEC investigation, and no regulation from anyone in state government, as of June 2013, there is still no real oversight, leaving a corrupt system that answers to no one.

Quotes from Others in KFP
“The reforms will make Kentucky’s pension system one of the healthiest in the country
Governor Steve Beshear March 2013, 4 days later a major non-profit files bankruptcy to escape this so-called healthy pension KERS which at 27% funded is the worst state plan in the U.S.

The issues confronting state and local pensions, while not trivial, are manageable. Well, maybe not in every case. In Illinois and possibly Kentucky, she says, “they should be hysterical.” Alicia H. Munnell’s in her new book, “State and Local Pensions: What Now?”
“Kentucky’s pension system is a veritable horse-trading operation. Its managers are currently the subject of an SEC investigation of its payments to investment agents with ties to the pension board.” Kevin Williamson in the National Review April 2013
Wow, talk about Kentucky fried pensions! All the pension bonds in the world won’t help Kentucky get out of its pension hellhole.
Pension Pulse- Montreal December 2012 Leo Kolivakis

Chris Tobe, CFA has 25 years of institutional investment experience with a focus on Public Pension plans. From 2008-2012 he served as a Trustee and on the Investment Committee for the $13 billion Kentucky Retirement Systems, but his involvement goes back to 1997 when he worked with Kentucky State Auditor Ed Hatchett and published a 40 page report on the investments of both the Kentucky Retirement Systems and the Kentucky Teachers Retirements Systems. In his consulting practice he has worked with major public plans in Texas, Maryland, Oklahoma, Missouri, Michigan and the District of Columbia. As a public pension trustee he completed the Program for Advanced Trustee Studies at Harvard Law School and Fiduciary College held at the Rock Center at Stanford University. He has published articles on public pension investing in the Financial Analysts Journal, Journal of Investment Consulting, Journal of Performance Measurement, and Plan Sponsor Magazine. He currently writes a column for the Wall Street Journal Marketwatch Retirement site, and has been quoted in numerous publications including Barrons, Forbes, Bloomberg, Reuters, Pensions & Investments and the Wall Street Journal print edition.

For more information about visit or contact Chris Tobe at 502-648-1303 or

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