A financial consultation company Monday presenteda report to the Public Pension Oversight Board describing how Kentucky’s pension systems became the worst funded systems in the United States.
The PFM Group report revealed the systems have had a combined $6.9 billion dollar negative cash flow since 2005 as benefits paid to retirees plus program expenses greatly exceeded appropriated funding.
According to the report, the negative cash flow could put payments to current and future retirees at risk and threaten Kentucky’s largest pension programs, including KERS Non-Hazardous and the Teacher’s Retirement System.
Kentucky’s State Budget Director John Chilton said it is important to examine the facts and establish guideposts to address the pension crisis.
