Teacher retirement system under-performed other retiree plan in Kentucky

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An important Herald-Leader article on the problems with our under-funded public employee retirement programs indicates that investment returns for the Kentucky Teacher Retirement System (KTRS) under-performed investments made by the Kentucky Retirement Systems, which cover other state and local workers. Per the article, the Teacher Retirement System produced only a 4.8 percent return on investments over the past ten years while other programs returned a notably higher 5.51 percent.

Both rates of return are significantly lower than budget assumptions, which means the unfunded liability to the taxpayer to back both programs grew substantially.

Here is something to think about: In an effort to boost returns, the retirement programs are investing in overseas securities, which of course ships more money away from both the state and national economies. Per the article:

“KTRS now invests significantly in international stocks.”

Somehow, teachers, that doesn’t seem helpful.