Yes, we still feel the need to look at Kentucky Retirement Systems numbers because it is clear the auditor is never going to do so.
We’ve all seen the June 2012 numbers (Warning: External PDF Link), right? We’re assuming that everyone is familiar with the market value of pension assets of KERS and CERS and will get why comparing those numbers to June 2011 provided more questions than answers.
June 2012 performance was a flat 0.14%. Well below average for public pension plants and essentially flat for the year.
But how is it with a flat market that KRS managed to lose $905 million in market value?
The KERS mess (Warning: External PDF Link) we can kind of excuse. Screwy underfunding, benefit expenses far exceeding contributions and such. At least that nearly $600 million drop can partially be explained by negative cash flows.
Though, for CERS, which struggles to make its full ARC payment each year? It’s tough to figure out how on earth CERS is down nearly $300 million in pension market value.
Kentucky Retirement Systems owes Cities and Counties a major explanation on this market value loss. Especially as it relates to the shifts in currency losses we have previously reported.
What a disaster.