The new pension transparency bill bans placement agents and enforces the 3 term Trustee limit enacted in 2008 with HB 1, effectively forcing out Randy Overstreet, the guy in the picture, who has been the Chairman of the Board of Trustees for 15 consecutive years at KRS, and Bobby Henson who is in his 4th term.
House Bill 1, “An Act relating to retirement and declaring an emergency,” which became effective on June 27, 2008, amended Kentucky Revised Statues, KRS 61.645(3) to shorten the term limits for elected trustees of the Kentucky Retirement Systems from five to three consecutive terms.
Some lawyers have already challenged the authority of the board with these two members over the 12 year limits. This legislation clarifies the original intent of HB1’s 3 term limit. The two 4 termer’s Overstreet and Henson should resign immediately to prevent any more liability for the board.
Because of the ongoing SEC and State Auditor investigation it will be much more difficult for Overstreet to kill this bill in the Senate than in the past.
More from a KRS trustee:
KRS trustee Chris Tobe said: “KRS needs placement agents like a dog needs ticks. KRS pays professional staff and consultants nearly $1m year so we do not have to pay placement agents.
“KRS staff and selected trustees have known about placement agents for years. KRS staff cling to the fact that the SEC was lobbied off their proposal to make placement agents illegal outright for the time being. I think barely legal at this time is not the standard we should strive for.”
For more background on the KRS shenanigans, Ralph Long has hours and hours and hours of reading material here.
UPDATE: More from Cheves here.