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Your Regularly Scheduled KRS Brain Melting

February 5th, 2013 · 3 Comments

If you have a few minutes to rot your brain, go check out the December report from Kentucky Retirement Systems.

Click here for the external PDF directly from KRS.

What you’ll notice? A 0.69% underperformance of the $11 billion pension fund cost more than $76 million. The underperformance in insurance was larger, but with fewer assets, cost $33 million. That’s an estimate of $109 million for calendar year 2012.

If KRS investments had met their performance benchmarks, its coffers would hold $109 million more in assets.

So much much of this was from losers like Commerce Street? And how much from the 27% funded KERS – which maintained higher cash levels (because more cash had to be maintained, as more was going out than coming in)?

CERS could have had benchmark returns and KERS much lower. Since they’re co-mingled, we’ll never really know.

Brain. Melting.

Tags: Economy · Stats

3 responses so far ↓

  • 1 Sandy // Feb 5, 2013 at 3:51 pm

    I am very concerned with what the pesion task force will do tomorrow at their meeting. I have told all that I could to contact the representatives to as for full funding and to leave the plan as is and not create a hybrid plan for new hires. Please keep us informed.

  • 2 Conservative Kentuckian // Feb 5, 2013 at 8:39 pm

    Why is there so much opposition to a different plan for new hires? The Carrolls are practically apoplectic over that possibility.

  • 3 Cavemouse // Feb 5, 2013 at 10:49 pm

    The Carrolls and a lot of other people know that this so-called hybrid plan is a scam and will end up costing more. pay out little to the retirees and the only ones making money will be the people who set up and “invest” the funds. I wonder whose friends they will be?