Kentucky Retirement System Seeks Dismissal of Small Town's Lawsuit Over Alleged Risky Investments
The troubled Kentucky Retirement Systems says a lawsuit brought against it by a small Northern Kentucky town should be dismissed.
In June, the city of Ft. Wright -- population 5,700 -- filed a civil suit against KRS over risky investments into Wall Street hedge funds with public money, seeking $50 million to cover the losses and to divorce its city and county employees from the state system.
KRS fired back with a motion last week claiming that the city lacks the proper legal standing to do so, and is asking Kenton Circuit Court to dismiss the claim.
Specifically, KRS argues that the types of alternative investments it makes into hedge funds are allowed by state law, and that circuit court is an improper venue for the suit because it is an administrative agency.
KRS is the state’s largest public employee pension system, and is currently underfunded by about $17 billion.
A Kenton circuit judge will hear KRS’ motion on Monday. .