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This Is Why There’s So Much Pension Ignorance

January 23rd, 2013 by jake · 6 Comments

You ever read or hear an editor or teevee station manager “editorial” and roll your eyes so hard they hurt?

Here’s another one! It’s from Ken Selvaggi of WAVE3. It’s a love fest of Greg Fischer and things that are horribly exaggerated or don’t matter to locals and people who actually pay attention to what’s happening in the area.

Then there’s this:

Yet all the positives can be negated if Louisville can’t get its pension debt lower. Right now, it ranks among the worst in the nation. The debt may soon cripple the ability of the city to deliver basic services. It consumes 15 percent of the general fund budget now, more than double than it did seven years ago.

Relief can only come from the state as it dictates pension policy. We encourage Kentucky legislators to make pension reform a top agenda item in this legislative session.

And that’s where Selvaggi isn’t just off his rocker but absolutely (ignorantly?) lying to television viewers.

The problem isn’t that pension obligations consume 15% of the budget. Though, part of the issue is that Fischer wastes a large portion of the budget on bloated salaries for people who do nothing. And part of the issue is that millions upon millions of tax dollars are floated out to several non-profit agencies around town that just flush the cash down the drain.

The real problem? That’s something you only comprehend if you don’t have your head in the sand. It’s Frankfort. It’s that CERS is a part of Kentucky Retirement System. It’s that Louisville is responsible for something like 65% of CERS. All while KRS is considered the absolute worst pension system in the entire country and one of the worst on the planet. CERS – meaning Louisville – is forced to carry the weight of KRS and its failures without having an increased voice in pension matters and without any recourse.

The only solution to that is for CERS to leave KRS and serve as its own pension system. Free of placement agents. Free of Fischer and Beshear-tied individuals who have no pension and investment expertise.

If you want more information about what’s going on at KRS? Just search through Page One. We write about it every day. The problems Louisville faces with CERS and KRS are not far or few and the least of the pension worries are how much of the general fund it consumes.

Tags: Hype · Metro Government · Oops · State Government · TV · WAVE

6 responses so far ↓

  • 1 curtis morrison // Jan 23, 2013 at 10:37 pm

    I’m so glad you’re calling out Selvaggi for not knowing CERS is the strongest component of KRS, or believing that the goal of pension reform is to reduce spending, or imply only pensions would somehow cut into city services?

    Not $100 million in MSD derivatives losses left over from Abaramson. I screw up, alot, but Jesus.

  • 2 J. Bruce Miller // Jan 24, 2013 at 3:38 pm

    With all the economic/banking expertise that exists in this city (and nation [if necessary] OR all the highly touted MBA business schools within a days drive (such as Indiana U., Vanderbilt, Northwestern’s Kellog School, etc) I simply cannot understand why this City cannot find a group of people (and pay them a stipend [if necessary]) WHO ARE TOTALLY UNINVOLVED WITH THE POLITICAL CRAP HERE — and get some answers to this question. Why does every problem have to be solved by a politician who doesn’t know his/her ass from 3rd base?

  • 3 jake // Jan 24, 2013 at 3:48 pm

    Probably because the people making decisions in this state are just fucking corrupt.

    Corrupt as all hell.

    I mean… it takes a special kind of stupidity blended with corruption to continue to get the KRS issues wrong. But I’m not surprised, as I’m constantly accused by the folks at the Kentucky Democratic Party/people around Jack Conway of being paid to constantly discuss the KRS.

  • 4 Debbie Linnig Michals // Jan 24, 2013 at 10:24 pm

    I am a retired employee of the Commonwealth. Today, I received from the pension board a ballot to vote for two employee representatives. If I remember correctly three out of the five are Jerrys people. I know what he did with the Louisville police officers and widows pension money, Lord God we have to find a way to keep him away from KERS and CERS.

  • 5 J. Bruce Miller // Jan 25, 2013 at 7:47 am

    Ms. Michals: I’m not a retiree, but I saw that ballot. This is ONE OF THE THINGS that prompted my response. Why is another Johnstone a candidate for this. Martin was a marvelous judge, knowledgeable and qualified. His bro is a nice guy, but his knowledge about pensions and appropriate pension investment rivals MY knowledge about how NASA could shoot a rocket to Mars. So do virtually ALL of the others on the ballot. Nominate Mr. Johnstone for Walmart greeter, and find a PhD in accountancy or business finance to take his place.

  • 6 Debbie Linnig Michals // Jan 27, 2013 at 1:44 am

    Mr. Miller: I kept asking myself why Johnstone would want to even get involved in the pension board mess…the only thing I can think of is Jerry will need alot of money for his next race. All of the banks across the country, the bond people, the stock people etc…..he can shake them down for money or they put the pension money somewhere else. this has to be a paid position somehow on the pension board with perks like trips to exotic places for pension seminars etc…..I like the Johnstone guys but I can’t see Rick giving his time and talent to this board and not expect to get alot out of it in return whether it be for himself or Jerry!

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