The Kentucky Public Pensions Authority (KPPA) Board voted on Thursday to approve a plan for separating administrative expenses between the County Employees Retirement System (CERS) and Kentucky Retirement Systems (KRS). CERS and KRS Boards of Trustees recently agreed to the terms that followed several months of meetings by a special joint Cost Allocation Work Group. The new rate is retroactive to July 1, 2021. The decision means KRS expenses increased by $695,000 this fiscal year while CERS expenses decreased by the same amount.
Deputy Executive Director Rebecca Adkins reported that KPPA would divide expenses as follows: CERS nonhazardous 57.58%, CERS hazardous 5.10%, KERS nonhazardous 32.97%, and KERS hazardous 3.64%.
The workgroup will reevaluate the formula each year.
The board approved KPPA Executive Director David Eager’s request to begin the search for a Chief Financial Officer (CFO). He worked with CERS and KRS board chairs to define the position that will serve as the agency fiscal officer and oversee accounting, budgeting, cash management, risk management, and procurement. The CFO will also develop and maintain account controls, conduct financial operations, and produce financial reporting of all systems administered by KPPA.
When asked by a board member, Eager said the estimated salary range would be $115,000 to $140,000.
Eager also updated members on the return to on-site work by KPPA employees. He approximated that 25% have returned to Frankfort after pandemic changes. Eager suggested that recent gas price increases may have slowed the rate of KPPA employees choosing to end remote work and return to the office.