Kentucky Public Retirees

03/27/2025

Sat through this hearing this morning as one of the few non-attorneys in the room. An interesting comment from the Judge towards the end of the hearing was that he thought the "Tier 3" case should proceed. Of course, settlement of the case before him as well as what happens to this other one is up to him. Have to wonder what effect one might have on the other. The $227 million in the settlement was described by Michelle Lerach, the attorney for the Tier 3 plaintiffs, as inadequate as $145 million of it is money owed to KPPA by one of the hedge fund sellers. And there was no discussion of attorney's fees which could be substantial if the letter of the contract is followed.
https://kentuckylantern.com/briefs/judge-hears-arguments-on-proposed-settlement-between-hedge-funds-ky-public-pension-systems/?fbclid=IwY2xjawJRfXZleHRuA2FlbQIxMAABHYZ1em1Kmfa5z0APTcoYpRodizKkRHTcHasAwtim8efhImGGteRFbKXWGg_aem_YODX81ZWEUxZR4nYMnh_OA

Kentucky judge hears arguments about a proposed settlement of long-running challenge of hedge fund investments made for the state's public pension funds.

03/26/2025

Report on the CERS Special Called Board Meeting
February 26, 2025

Chair George Cheatham called the meeting to order via teleconference. The roll was taken and seven members were present. There were no public comments. Board Materials for this meeting can be found here:https://www.kyret.ky.gov/About/Meeting-Calendar/Materials/March%2026%202025%20CERS%20Board%20of%20Trustees%20Meeting%20Material.pdf

The purpose of this meeting is to consider the recommendation by the CERS Investment Committee to commit an additional $30 million to the Arctos American Football Fund. As with the Investment Committee, Investment Division staff explained their reasoning for the proposed additional investment, including that this additional investment crosses a threshold to earn CERS a discount in fees. They also went into some detail as to how this new investment fit into the overall Real Return Allocation. (The initial recommendation memo from February 2025 is included in the Materials for reference.)

The Board approved the Investment Committee’s recommendation.

With no further business, the meeting was adjourned.

03/26/2025

February 26, 2025

Chair Merl Hackbart called the meeting to order via teleconference. Roll was called and four members were present. There were no public comments. Materials for this meeting can be found here:https://www.kyret.ky.gov/About/Meeting-Calendar/Materials/March%2026%202025%20CERS%20Investment%20Committee%20Meeting%20Material.pdf

This meeting was to present a proposal by the KPPA Investment Division for CERS to add an additional investment of up to $30 million in the Arctos American Football Fund. About two years ago, KPPA committed $250 million to the Arctos Sports II fund. At that time, the NFL was still considering whether to allow institutional private equity investments, which it eventually did but only to four investors, Arctos being one of the four. Last month, CERS committed an $70 million to the Arctos American Football Fund. This new request would add to that which has already been invested. CERS would receive a 5-bps concession for all of the investments made to the Arctos (approx. $79,000).

The attractiveness of the investment, as well as what it would do in the overall Real Return portfolio strategy, was discussed by CIO Steve Willer with additional commentary by Deputy CIO Anthony Chiu. It was noted that this investment would be recorded with the custodial bank BNY as a CERS-only investment.

The Committee voted to approve this recommendation.

With no other items on the agenda, the meeting was adjourned.

LPT

03/26/2025

The Cumberland Valley Chapter of the Kentucky Public Retirees (KPR) met Tuesday March 25, 2025 David's Steak House in Corbin Kentucky.

03/25/2025

NEWS RELEASE

Contact

Amy Fields, Communications Director

Telephone 502-696-8447

Email [email protected]

Website https://kyret.ky.gov

FOR IMMEDIATE RELEASE

March 25, 2025



Carver, McGraw, Webb Elected to CERS Board of Trustees

Trio will begin four-year terms on the County Employees Retirement System Board of Trustees on April 1, 2025.



FRANKFORT, KY – Dr. Patricia Carver and Steven Webb were the top two nonhazardous vote-getters in the most recent County Employees Retirement System (CERS) Board of Trustees election. Tommy McGraw was the winning hazardous candidate. All three will begin serving their four-year terms on the CERS Board on April 1.



The nine-member CERS board is composed of three trustees elected by members and six trustees appointed by the Governor selected from lists of candidates provided by the Kentucky Association of Counties (KACo), the Kentucky League of Cities (KLC), and the Kentucky School Boards Association (KSBA).



“On behalf of the entire CERS Board of Trustees, I want to congratulate Dr. Patricia Carver, Steven Webb, and Tommy McGraw on their election and thank them for stepping forward to serve their fellow public servants,” said CERS Board Chairman Lisle Cheatham. “This system exists to protect and sustain the retirement security of our local government employees, and it takes dedicated leadership to keep that promise. I look forward to working alongside each of them to build on our momentum and ensure the long-term strength and stability of the County Employees Retirement System.”



“I thank Betty Pendergrass and Jerry Powell for their many years of dedicated service,” said CERS Chief Executive Officer Ed Owens III. “I’m excited to build upon their commitment to excellence with the newly elected Trustees. Pat, Steven, and Tommy each bring a unique set of skills that will continue to inform our work on behalf of our membership.”



Dr. Carver, the only incumbent on the ballot, was first elected to the CERS Board in 2021. She is retired from the Louisville and Jefferson Metropolitan Sewer District, where she worked in various positions from 1987 to 1999, including Chief Internal Auditor. She holds a Ph.D. in Leadership in Higher Education from Bellarmine University and works as an assistant professor in the school’s Rubel School of Business. She is a Certified Public Accountant (CPA) and has an MBA from Bellarmine. She earned her Bachelor of Science in Accounting from the University of Louisville.



Mr. Webb is the finance director for the City of Cincinnati. Previously, he was finance director and chief financial officer for the City of Covington, where he oversaw the budget, accounting, procurement, and payroll. In 2024 he served as president of the Kentucky Government Finance Officers Association (KGFOA), and in 2023 he was named that organization’s Finance Officer of the Year. He has a Bachelor of Arts degree in Business Management from Purdue University.



Mr. McGraw is a retired captain of the City of Hopkinsville Fire Department. He has more than 20 years of management, data collection/reporting, logistics, and emergency scene mitigation experience. He holds multiple certifications from the International Fire Service Accreditation Congress (IFSAC). In addition to his career as a firefighter, he started two businesses – a freight transportation company that operated for 13 years, and a small maintenance operation. He graduated from Christian County High School.



“We are excited to welcome two new trustees, whose fresh perspectives will strengthen our efforts, alongside the continued dedication and experience of Dr. Carver,” said KPPA Executive Director Ryan Barrow. “We also extend our heartfelt gratitude to Betty Pendergrass and Jerry Powell for their invaluable service and contributions to advancing our mission.”



Total turnout for the CERS election was 2.7%, including inactive members. Counting only active and retired members – which together accounted for 93% of all votes cast – turnout was 3.9%.

KPPA has mailed 1099-Rs for tax year 2024. You can log into Self Service at myretirement.ky.gov and navigate to the Tax Information link to access your current or previous 1099-Rs. Please note that new tax brackets and standard deductions are now in effect. The Internal Revenue Service (IRS) adjusts...

03/22/2025

Report on the KPPA Quarterly Board Meeting
March 20, 2025

Chair Jerry Powell called the meeting to order via teleconference. The roll was taken and all members were present. There were no public comments. Minutes for the December 5, 2024, and January 3, 2025, meetings were approved. The Board Materials for this meeting can be found here:https://www.kyret.ky.gov/About/Meeting-Calendar/Materials/March%2020%202025%20KPPA%20Meeting%20Material.pdf
(NOTE: The first ten minutes or so of the video had numerous freezes losing both picture and sound.)

The first item of business was the report from the Audit Committee. In it was a request to ratify acceptance of these internal audit reports: Review of Investment Administrative Fees, Review of Office of Investment Policies, and Review of Procurement Card Process. Ongoing work by the Audit Staff was also reviewed. Next in this report was a request for the KPPA to approve the GASB 68 and GASB 75 Proportionate Share Audits for both CERS and KRS systems and to publish them on the KPPA website. Auditors with Blue & Company made a brief presentation regarding this Audit. (These audits had been previously discussed more extensively at earlier CERS and KRS Board. The Audit is available in the Board Materials.) The Board voted to ratify the recommendations and to approve and publish the Proportional Share Audits.

The next item was consideration of recommendations made by the Ad Hoc Regulations Committee. To be considered were Administrative Regulations 105 KAR 1:200 (amended regarding retirement procedures) and 105 KAR 1:202 (new separating out requirements for Form 6000/Application for Retirement). The Board voted to approve these regs.

Next up on the agenda was a discussion on the Administrative Budget. CFO Mike Lamb provided a brief review of the Summary Analysis provided. He noted that $17.5mn had been spent through the second quarter or 48.47%. The only noteworthy line item was Legal Contract where this year’s expenses to date far exceed the prior year due to a significant increase in legal activity. This was anticipated and budgeted. No action is being requested today but this may change at the end of the 3rd Quarter.

An update from the Investment Division was a review of activities by the KRS and CERS Investment Committees and Boards, in particular newly approved investments. (These Board members have heard this presentation at previous CERS and KRS Board and Committee meetings so the information presented today was brief.) Investment returns through December were reviewed. January rebounded from the 2nd Quarter but February and March returns have been hit by volatility and uncertainty in the markets. There were no compliance issues.

KPPA CEO Ryan Barrow next discussed a request to add a Senior Investment Associate to the Investment Division. This position is junior to the six existing positions, two of which are vacant. The idea behind this is threefold: increase experience diversification, attract new talent, and provide a career pathway within KPPA. The Board approved this request.

Next was a presentation by the Bank of New York Mellon (BNY), which is the custodial bank for KPPA. The presenters provided a brief overview of their institution, its strengths, and how they work to protect KPPA assets. The presentation is in the Materials and it is fairly detailed.

Under his KPPA Update, CEO Barrow noted numerous items, some highlighted here:
• Legislation: HB 30 on Governor’s desk; HB 71 needs just a final reading in the Senate.
• ACFRs are published on website and SAFR is both and on website.
• Strategic Plan: There will be a more robust discussion on this at the next KPPA Board meeting. Some actions/recommendations are already implemented.
• Louisville Office: Awaiting final action from Secretary of Finance. There will be a construction phase once approved to “build out” the space and make ready for occupancy.
• Staffing is at 262 employees. Some have been participating in the Team KY Internship Program while others have inaugurated the KPPA Leadership Academy.
• Personnel Cabinet has been doing a legislatively-mandated statewide position description review, currently focusing in the IT area. With this, there is likely to be some modifications in compensation that will likely affect the cost of IT personnel in the budget.
• CEO Barrow highlighted some of the conferences staff have recently attended and described how information learned at these events have been/will be shared among all staff.
• Finally, CEO Barrow initiated a “KPPA Kudos”, recognizing those staff/departments that have worked above and beyond.

There was no New Business.

The last item on the Agenda was a Closed Session to discuss litigation. Upon return to Open Session, no action was taken.

With no further business, the meeting was adjourned.

LPT

03/20/2025

Members from the local KPR chapters met in Frankfort today for the Quarterly Board Meeting of Kentucky Public Retirees.

03/18/2025

The speakers at today's Bluegrass West meeting were Brian Curtis, investment manager from Nationwide, and Brent Music from Kentucky Deferred Comp.

03/13/2025

Review of the CERS Board of Trustees Meeting
March 10, 2025

Board Chair Lisle Cheatham called the meeting to order via teleconference. Roll was called; eight members present. There were no public comments. Minutes of the December 2, 2024; December 17, 2024; December 19, 2024; January 3, 2025; and February 11, 2025, meetings were approved with one vote. Meeting materials can be found here:https://www.kyret.ky.gov/About/Meeting-Calendar/Materials/March%2010%202025%20CERS%20Board%20of%20Trustees%20Meeting%20Material.pdf

Under the Chairman’s Corner, Chair Cheatham expressed his personal appreciation for the service of departing Trustees Betty Pendergrass and Jerry Powell. In his tribute, he provided a history of their service and contributions to both the old KRS Board and the new CERS Board.

First up was a report from the Personnel Committee. In it, among other items, the Committee recommended approval of the 2025 Performance Plan for CEO Ed Owens, III. The Board ratified this recommendation.

Next up was the report from the Finance Committee. Nine hazardous duty requests were submitted to the Committee which approved them. The Board ratified the Committee’s request. The Finance Committee also reported its input for its section of the CERS Strategic Plan but review was deferred to a later agenda item. A draft copy of the entire CERS Strategic Plan is included in the Materials. The Committee also heard a presentation from XTP Implementation Services, a company newly acquired by Wilshire, KPPAA’s investment consultant. XTP basically reviews investment contracts and fees for its clients. There was considerable discussion with an ending question as to how to procure their services if that became desired. No decision was made at the Committee level.

CFO Michael Lamb presented the quarterly review of financial statements for the period ending December 31, 2024. While not in the Materials, Lamb noted the draft GASB 68 and GASB 75 Proportionate Share Audits for FY 24 have been posted on the KPPA website for employers to use. The end of the process will occur at the next KPPA Board Meeting when it considers approval of the Drafts presented today. In reviewing the financial, it’s worth noting that employee contributions have noticeably risen with both higher salaries for employees and a larger number of employees while the contributions from employers have decreased as the employer rate has been reduced. The CERS combined Net Position as of this date was just over $19bn, up 8.83% over the same period last year. Cash flows are generally positive but turn almost entirely negative when investment returns are not factored in. (NOTE: The two insurance plans are 100%+ funded and a negative cash flow in these are generally expected.) Concerning outstanding invoices, there was a noticeable decline in the dollar amount of outstanding invoices, however, 81% ($1.8mn) is due from just four employers with these cases in litigation. There is a new “aging” report for overdue invoices that show the results in a diligent effort to get these resolved. A review of the KPPA Administrative Budget shows 55.41% remaining for the last six months of the fiscal year. Legal Contracts show the largest increase but this was anticipated and budgeted.

The Investment Committee Report followed. There were four distinct recommendations:
1. That US Large Cap Equity be split between two external managers – JP Morgan Chase and T Rowe Price. Each would receive up to 6.25% of the total Public Equity allocation with an initial allocation of 3.3% to each (approximately $383.3mn each). These funds come from the existing internally managed portfolio. (Details of the selection process are in the Materials.) The Board approved this recommendation.
2. That KPPA adopt the MSCI All Country World Investable Market Index as the benchmark for Global Public Equity investments. (The current benchmark in use essentially ignored small cap stock.) The Board approved this recommendation.
3. That CERS invest an additional $70mn in the Arctos American Football Fund to compliment a previous investment with the same firm. The Board approved this recommendation.
4. That CERS invest an additional $250mn in the American River Fund to compliment an existing investment. The Board approved this recommendation.

Steve Willer, CIO, first gave a quick review of investment returns through December that were covered in this report. The 2nd Quarter of FY 25 was weaker than the previous one but YTD returns remained in positive territory. January’s numbers were just released and were good: approx. 1.9% across the four pension/insurance plans. February’s numbers, however, will be affected by the high volatility and uncertainty in the markets which have scared investors. A ‘bumpy ride” is predicted for the rest of the year. It was noted that the “Market trades off headlines” and rewards certainty. There was some discussion of the included – and extensive – reporting by Wilshire. The Investment Budget was not discussed today but remarks made in the Investment Committee meeting showed no surprises. Finally, there was some discussion on the Investment Compliance Report, although there were no compliance issues to note. The new reports and reporting process was discussed by the new Compliance Officer. There was no Board action required for the financial reports.

Next was discussion on the CERS Strategic Plan. Betty Pendergrass presented the final draft of the document and led the group through a quick review, making two changes. The Board voted to approve the CERS Strategic Plan as edited.

The next committee reporting was the Joint Retiree Health Plan Committee. The report given to the Committee by Humana was reviewed, mostly consisting of metrics used by Humana to gauge performance.

Discussion regarding the CERS election was next. Voting closed on March 1 although paper ballots will be received until March 14. On March 15, the results will be sent to the Chair of the Audit Committee and the CERS Board Chair. Shockingly, it was noted that the number of ballots returned thus far (6,570), both electronically and by mail, total only 2.38% of those eligible to vote in the election. By contrast, the number in 2021 was 9,054 or 3.60%. Why members don’t vote is now becoming a serious question.

CEO Ed Owens provided his update. He noted his work in litigation resolution, the CERS Trustee election, communication with internal and external partners, outstanding invoices, and CERS Trustee education. (A summary of hours earned is in the Materials.)

The last open agenda item had KPPA CEO Ryan Barrow providing his update, noting the addition of a “Kudos” section to his report highlighting exceptional work by KPPA staff. Of special interest was an “almost at the finish line” report on the Louisville office for the Investment Division.

Last on the Agenda was a Closed Session. Upon return to Open Session, no action was taken.

With no other items on the agenda, the meeting was adjourned.

LPT

03/13/2025

Report on the KPPA Special Called Board Meeting
March 13, 2025

Chair Jerry Powell called the meeting to order via teleconference. The roll was taken and all members were present. There were no public comments. There were no Board Materials other than the agenda for this meeting.

The only order of business was a Closed Session to discuss litigation. Upon return to Open Session, no action was taken by the Board.

With no further business, the meeting was adjourned.

LPT

03/13/2025

I have deleted a previous post regarding Social Security and phone support because (1) the comments were getting nasty and personal and (2) it has been modified.

The Social Security Administration late Wednesday scuttled proposals it was entertaining to discontinue phone service for millions of Americans who submit retirement and disability claims after The Washington Post reported Elon Musk’s U.S. DOGE Service group was considering the move to prevent suspected fraud.

The transition would have steered older and disabled individuals to depend on the web and local in-person field offices to work on their claims, restricting a service that 73 million Americans have come to count on for decades to receive earned government benefits.

But Social Security and White House officials indicated the administration will proceed with another much smaller aspect of the original plan: Customers will no longer be able to update a direct deposit routing number or other bank data over the phone..”

Over the past few days, Musk’s budget-cutting staff at Social Security, which has overseen a rapid reduction of employees and services, had considered the changes to telephone services against claims processing and direct deposit bank account transactions, said one person familiar with internal discussions and documents provided to The Post.

03/12/2025

NEWS RELEASE
Contact Ed Owens III, CERS Chief Executive Officer
Telephone 502-696-8642
Email [email protected]
Website https://kyret.ky.gov

FOR IMMEDIATE RELEASE
March 12, 2025

CERS FILES BRIEF ENCOURAGING APPROVAL OF PROPOSED SETTLEMENT IN HEDGE FUND LITIGATION

Statement in Support of Settlement notes the profits that retirement systems received from the hedge fund
investments and that the settlement is in the best interest of all members.

FRANKFORT, KY – The County Employees Retirement System (CERS) has filed a Statement in Support of Settlement in the hedge fund litigation commonly referred to as “Mayberry.” In it, CERS says a proposed settlement in that case resolves numerous lawsuits, including Commonwealth of Kentucky v. KKR & Co. Inc., et al, which was originally filed in 2020 by the Kentucky Office of the Attorney General; a similar lawsuit, Tia Taylor, et al. v. KKR & Co. Inc., et al., filed more recently on behalf of Tier 3 beneficiaries; and related lawsuits in state and federal courts across the country.

“The CERS Board has a fiduciary responsibility to manage the CERS retirement trust – along with the CERS portion of the health insurance trust – for the exclusive benefit of over a quarter-million members,” said Lisle Cheatham, Chairman of the CERS Board of Trustees. “CERS believes the proposed settlement agreement is in the best interest of all its members – including its Tier 3 members – who will share in the benefit of the recovery to the trust as a whole.”

Settlement of the lawsuits involves payment of $227.5 million from the hedge funds, which includes distribution to KPPA of approximately $145 million in assets held by one of the defendants, Prisma Capital, in connection with a potential indemnification claim. All settling defendants continue to deny liability and maintain that they have settled solely to avoid the expense, distraction, and inconvenience of further litigation.

The lawsuits, according to the Statement, have resulted in millions of dollars in legal fees, lost investment opportunities, and the possibility of hundreds of millions of dollars flowing out of the trusts if the plaintiffs were unsuccessful at trial.

“CERS did not initiate any of these lawsuits,” Cheatham said. “Yet, throughout the course of this litigation, CERS has shouldered significant financial and operational burdens as a result of its involvement in these matters.” Resolving the lawsuits through the negotiated settlement removes the uncertainty of litigation, allows CERS to focus on its core mission, and recovers significant assets for the system.

In filing the Statement in Support of Settlement with Franklin Circuit Court, CERS recognizes that, should the settlement
be approved, the resulting net profit from the hedge fund investments to the systems will total at least $429 million
after reducing the revenue received to account for attorney fees already paid and the maximum potential attorney’s

fees contemplated by the agreement between the Attorney General and its private counsel. Seventy-five percent (75%) of that profit would be distributed to the CERS trust for the benefit of its members. Importantly, the Statement also notes that the settlement benefits all members. “The CERS Board, as fiduciaries with
the exclusive right and responsibility to manage trust assets, believes that this settlement is in the best interests of all
CERS members in every tier,” Cheatham said. “The proposed settlement provides clarity for the CERS system,” Cheatham continued. “Our hope is that the Court approves the proposed settlement agreement as it is written and enters the tendered approval order. Doing so guarantees an immediate and substantial recovery for all CERS members and terminates the risk of substantial future liability.”

https://www.kyret.ky.gov/About/Documents/Mayberry%20Settlement%20Agreement.pdf

https://www.kyret.ky.gov/About/Documents/CERS%20Statement%20in%20Support%20of%20Proposed%20Settlement%20in%20Hedge%20Fund%20Litigation.pdf

03/12/2025

Report on the KRS Board of Trustees Meeting
March 12, 2025

Chair Lynn Hampton called the meeting to order via teleconference. The roll was then taken and eight members were present. There were no public comments. Minutes from the December 4, 2024; December 17, 2024; January 3, 2025 (2 sets); and February 11, 2025, meetings were approved. The Board Materials for this meeting can be found here:https://www.kyret.ky.gov/About/Meeting-Calendar/Materials/March%2012%202025%20KRS%20Board%20of%20Trustees%20Meeting%20Materials.pdf

The first item of business was the report from the Joint Retiree Health Plan Committee. The performance reports given to the Committee by Humana was reviewed, including a satisfaction survey. The snafu involving 7,000 members at the beginning of the year was discussed. CMS has released the Advanced Rate Notice for 2025 which hints at changes to Medicare, including costs, for 2026. The final Notice will be released on April 7 which will likely be discussed at this Committee’s meeting in May.

Moving on, the next item of business was presentation of the Draft GASB 68 and GASB 75 Proportionate Share Audits for FY24 as part of the overall FY24 KERS Audit. The Board voted to accept the audits. These draft reports have been added to the KPPA website so that employers have access to the data. The end of the process is presentation at the KPPA Board Meeting for its ratification and approval to publish.

Moving into a review of the Quarterly Performance Reports ending December 31, 2024, CFO Mike Lamb highlighted some performance outliers compared to the same period last year. Notes are provided in the reports for noteworthy variances. Net position for the six pension and insurance plans increased by 13.85% compared with the first six months of FY22. The Contribution Reports summarize the detailed numbers found in the Financial Statements. Contributions by members showed an increase, the result of increased salaries and a larger number of employees, while employer contributions decreased. Realized Gains in investments all showed increases while Unrealized Losses showed a decrease. In the Outstanding Invoice Report, a total of $6,686,014 remains owed to KRS from various agencies (899 invoices, 204 of which are over 5 years old), the largest individual amount of just under $5.1 million is in litigation. Under Penalty Invoices, twenty were waived, none were created, and 24 were paid in the quarter. Administrative expenses were briefly discussed; nothing of real concern and 55.41% of the budget remains for the balance of the fiscal year.

Next up was a report from the Investment Committee. Steve Willer, CIO, first gave a quick review of investment returns through December that were covered in this report. The 2nd Quarter of FY 25 was weaker than the previous one but YTD returns remained in positive territory. January’s numbers were just released and were good: approx. 1.9% across the four pension/insurance plans. February’s numbers, however, will be affected by the high volatility and uncertainty in the markets which have scared investors. It was noted that the “Market trades off headlines” and dislikes uncertainty. There was no Board action required for the financial reports. Through December, KERS NH earned 4.30%; KERs H earned 4.65%; and SPRS made 4.26%. He gave an overview of the Investment Budget through the first six months of the fiscal year which are running at 48% of budget. Expenses increased during the quarter for legal activity as well as for Performance Fees and Investment Advisory Fees. The extensive Wilshire reports on the economy and market conditions are included in the Materials. The Investment Compliance Officer gave her report, although these were not included in the Materials. At this time, there were no compliance issues to report.

There were three actions taken by the Committee for which they are seeking ratification from the Board:

1. Invest up to 6.25% of the total Global Public Equity allocation in the JP Morgan US Large Cap Core Equity Strategy (initial funding of 3.30% or $383.3M0, subject to successful contract negotiations.
2. Invest up to 6.25% of the total Global Public Equity allocation in the T Rowe Price US Structured Research Equity Strategy (initial funding of 3.3% of $383.3M), subject to successful contract negotiations.
3. Adopt the MSCI All Country World Investable Market Index as the performance benchmark for Global Public Equity investments.

Items 1& 2 were the result of the Investment Division retiring its internally managed public equity portfolio. The Board voted to approves these three recommendations under one motion.

No discussion of Hazardous Duty requests, so apparently there were none.

Under KRS CEO updates, John Chilton noted work on items to be discussed in Closed Session, work on the unpaid invoice task force, attendance at KPPA Investment Committee meeting as well as PPOB meetings, and changes to the KRS Board of Trustees Education Policy. This policy (and associated forms) and a revised KRS Board of Trustees Per Diem and Reimbursement Policy (and associated forms) were included in these Materials but will be discussed at a subsequent meeting.

Under KPPA updates, CEO Barrow’s report was included but he is testifying at the Senate State & Local Government Committee Meeting this morning on HB 71 (KPPA Reorg). In his absence, Michael Board, Executive Director of Legal Services, presented the report but highlighted a new item – KPPA Kudos. Staff members who have provided extraordinary service to the agency will be highlighted in each report.

There was nothing under New Business.

The Board voted to go into Closed Session for the purpose of discussing pending litigation. Upon returning to Open Session, no action was taken.

With no further business, the meeting was adjourned.

LPT