Louisville Courier Journal reporter Stephenie Steitzer did a nice job covering kind of an old news story on the state’s public employee benefits mess and coming bailout on Saturday. Poor investment returns with no accountability in the defined-benefit plans have been an well known for years.
A new report charging incompetence cost $5 billion the last five years was the reason for story today and the charge in the report that the retirement systems’ portfolio “violates sensible diversification principles” was nice to see.
But catching the Frankfort talking heads flat-footed, as Steitzer did, was priceless. Really, go here and read the story yourself.
It’s a shame, though, that Steitzer couldn’t find anyone to interview who could speak sensibly about what has to be done. She reported that she tried to talk to Senate President David Williams, who prefers an annuity based DB/DC hybrid plan, but she couldn’t reach him.
Someone from the Bluegrass Institute could have told her it is time to cut our losses, get rid of the investment gurus running the show in Frankfort, and put the money in mutual funds.