Kentucky’s troubled public employee pension system to get $23 million from Bank of America settlement
BY JOHN CHEVES
firstname.lastname@example.orgAugust 21, 2014
Kentucky State Employees Pension system receives $23 million from Bank of America’s $16.65 billion national settlement with the federal government over accusations that the bank improperly dumped “toxic” mortgage-backed securities on the market, helping fuel the economic recession of 2008.
KRS executive director Bill Thielen confirmed the sum Thursday morning.
Kentucky Attorney General Jack Conway is scheduled to attend a 9 a.m. news conference in Washington, D.C., with U.S. Attorney General Eric Holder to announce a “historic recovery” for KRS, Conway’s office said early Thursday. Conway will share details of the recovery during an 11 a.m. conference call with Kentucky news media.
KRS provides pensions and health-care benefits for state and local government retirees.
The system provides pension and health care benefits for 340,626 present and future retirees from state and local governments. Some experts consider it the weakest state retirement system in the country. It faces $17 billion in unfunded liabilities due largely to inadequate state payments for most of the last 15 years, starting in Gov. Paul Patton’s administration. Some nonprofit agencies have sued for the right to exit the system.