FRANKFORT, Ky. (AP) - Kentucky's troubled retirement system will appeal a recent federal bankruptcy ruling that officials fear could threaten the solvency of the state's $15.7 billion pension fund.
A federal bankruptcy judge ruled last month that Seven Counties - a nonprofit community mental health center based in Louisville - could proceed with its bankruptcy filing and leave the retirement system.
The Kentucky Retirement System board of trustees voted unanimously to appeal that ruling after meeting privately with attorneys for several hours Wednesday. They fear the ruling could allow all 13 community mental health centers to leave the system, forcing taxpayers to pick up the cost.
The Kentucky Employees Retirement System is the worst-funded major public pension system in the country, according to Fitch Ratings. It has an unfunded liability of $17.1 billion.