FRANKFORT, Ky. (AP) - A recent report shows Kentucky's largest pension fund for state workers is troubled, but still able to make payments.
The Washington-based Center for State and Local Government Excellence found that the Kentucky Employees Retirement System faces a $6 billion shortfall and administrators cash out investments each month to pay benefits. The fund covers 84,000 state employees, who are guaranteed to keep receiving benefits.
Josh Franzel, vice president of research at the nonprofit center, told The Courier-Journal that the system faces one of the most difficult funding situations in the nation, with about 40 percent of the assets it needs to cover benefits.
Kentucky Retirement Systems director Mike Burnside says the report wasn't a surprise.