Placement Agents

After being heavily criticized for their use, Kentucky’s major pension program says it hasn't used a placement agent for three years.

Placement agents are investing middle men that direct pension funds to investment opportunities. Kentucky has not had a good track record with placement agents, who have been accused of mismanaging millions for the pension funds according to a 2011 audit.

Lawmakers have given final approval to legislation that would make placement agents involved in financial investments for Kentucky's pension program subject to the state's ethics laws.  The legislation is an offshoot of a state audit that raised questions about the use of placement agents who advise the state about how to invest retirement funds for teachers and government workers.  The House voted 94-0 Thursday for final passage.  Democratic Rep.