KY Teachers: Bevin’s Pension Record Shows We Cannot Trust Him
Posted September 10, 2015
State Journal Reveals That Bevin’s Pension Company Charged ‘Above-Average’ Fees While Jeopardizing Retirement Security
FRANKFORT, KY — Today, Jefferson County Teachers Association President Brent McKim issued the following statement in response to a report in the State Journal revealing Matt Bevin’s “less than stellar” record on pensions. The story details how Bevin’s investment company charged “above-average” fees while the retirement funds they managed underperformed, jeopardizing retirement security for thousands.
“This latest revelation is another reason why Kentucky teachers cannot trust someone who knowingly profits at the expense of others' retirement security, as Matt Bevin has done,” said Jefferson County Teachers Association President Brent McKim. “It was bad enough when Bevin was pushing an ill-advised corporate takeover of our teachers pension plan that would jeopardize teachers' retirement and drain funding from our public schools — but now it turns out that Bevin has a long history of enriching himself through ‘above-average’ taxpayer funded fees while poorly managing pensions and hurting retirees. Bevin told us that his pension experience was one of his central qualifications — but his real record on this issue is actually just another reason to back Attorney General Jack Conway for governor.”
The National Education Association has said that a pension plan like Bevin's could leave teachers "suddenly unable to retire."
State Journal: "Bevin’s Pension Experience Less Than Stellar." “While gubernatorial Republican candidate Matt Bevin has told voters his pension experience would help Kentucky’s pension systems, his former company was paid millions in fees when two pension funds it managed underperformed and one struggled to cover costs and still pay benefits…Moreover, fund consultants Hewit Ennis Knupp reported the state was paying above the average norm for performance-based fees.” [The State Journal, 9/5/15]
State Journal: Bevin’s Client, St. Louis Firefighter Pension System, Forced To Overhaul Benefits After Gains Weren’t As Promised. "But in 2011, IAM had negative 1.61 return and received $272,793.05 in payment. While the firemen’s pension has had to overhaul its benefit structure, an official who didn’t want to publicly speak for the board said board officials were reportedly told the investment gains would cover the managing costs. According to Kentucky Secretary of State’s database, Integrity Asset Management’s formation date was March 2003 with a principal office in Delaware.” [The State Journal, 9/5/15]