FRANKFORT, Ky. — Representative James A. Tipton of Taylorsville was appointed by House Speaker David Osborne to co-chair the Kentucky General Assembly’s Public Pension Oversight Board. The appointment became effective on Friday, May 20.
“Fiscal responsibility has always been a priority, but particularly so because we have so much riding on our public pension systems. We must be able to meet our commitments and still afford future needs. It is a balance, but the taxpayers of Kentucky – some of whom are public pension participants – deserve our very best efforts,” Tipton noted. “It is an honor to be appointed as co-chair of this committee, and I plan to bring my reputation for strong fiscal policy to my tenure on the board.”
The Public Pension Oversight Board is a statutory committee that meets throughout the year during both the legislative session and the interim. This board is responsible for assisting the General Assembly with its review and oversight of the logistics pertaining to the Kentucky Retirement System.
After a record-setting budget year, both Kentucky Retirement System and Kentucky Teachers Retirement System have been fully funded at the actuarially required contribution (ARC.), which can be up to twice as much as the level required by state law. A majority of the information that goes into crafting sound policy to benefit our pension system is brought from the Public Pension Oversight Board.
The Public Pension Oversight Board, in short, is responsible for managing what is one of the biggest line items in our budget. Overseeing the pension system for the public employees of the state is a task that should not be overlooked. Employees covered under this pension system include state police, teachers, road crews, and even social workers. We have maintained for decades that “…a pension is a promise,” and this committee and its leadership show that the legislature maintains this as a priority. With the uncertainties of an unstable economy, this board is critical in ensuring that retirees and pension contributors are secure in their investments.
In addition to the oversight of the administration, investments, and benefits of the state’s pension system, this oversight board also acts as a “watchdog” for administrative regulations that may be dated, inhibiting the system to act at full capacity. Overhauling policies such as protocols for new hires and their benefit plans, so that they reflect what other public and private sector employees across the nation utilize.
The state’s pension system has indeed been under scrutiny for several years. Once Republicans took the majority in 2017, obligations to the state pension system moved up in priority resulting in better funding and more sound investment.
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