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From YouTube: Public Pensions Oversight Board (4-24-23)
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A
C
D
E
A
We
do
have
a
quorum
again,
welcome
everyone
and
thank
KET
for
being
here
today.
That's
not
always
the
case,
but
we
were
glad
to
have
you
today
again.
This
committee
does
do
some
very
good
work
with
that
said.
Need
to
approval
of
the
minutes.
Have
a
motion
to
approve
minutes.
We
have
a
motion
in
a
second
all
in
favor
signify
by
saying
aye
opposed
motion
carries
first
order
of
business.
Today
is
the
judicial
Forum
retirement
system,
Mo
Craycraft,
the
floors,
yours
young
man,
introduce
yourself
for
the
record
and
please
proceed.
F
F
First,
a
recent
investment
in
cash
flow
information
from
both
our
plans
update
on
the
most
recently
completed,
2023,
regular
session
and
legislation
that
impacted
our
plans
and
then,
lastly,
an
update
with
regards
to
how
spill
76
implementation
a
bill
passed
during
the
2022
regular
session,
which
requires
a
review
of
economic
assumptions
slots
two
and
slides
three
begin:
the
investment
portion
of
our
presentation,
we've
included
both
February
and
March,
but
for
the
sake
of
the
time,
your
time
this
morning,
I
was
going
to
focus
on
slide
number
three
and
March
31,
since
that
was
the
most
recent
results
for
the
first
three
quarters
of
the
fiscal
year,
which
you
can
see
in
that
kind
of
that
third
column,
titled
fytd23.
F
You
can
see
that
for
the
first
three
quarters
of
the
fiscal
year,
nine
months
in
the
plans
have
produced
a
pretty
attractive
results
in
response
to
what
was
a
disappointing
fiscal
year.
22.
I'll
also,
you
know
point
out.
This
is
an
interesting
point
in
time,
as
you
can
look
at
a
fiscal
year-to-date
return
of
about
eight
and
a
half
eight
percent.
If
you
move
to
the
next
column
for
the
last
12
months,
the
plans
have
actually
lost
about
five
percent,
so
it
just
tells
you
the
number
one
I
know
a
lot
of
times.
F
We've
talked
about
you
know,
looking
at
a
single
point
in
time
can
be
difficult
when
you're
dealing
with
these
large
plans,
but
it
also
tells
you
that
the
last
quarter
of
fiscal
year
22
was
a
was
a
tremendously
impactful
both
on
a
you
know,
numbers
basis,
but
it
was
a
tough
month.
You
know
our
plans
alone
saw
their
equities
drop,
15
percent,
just
in
that
three-month
period,
so
still
showing
a
negative
result
for
the
one
year.
But
as
you
look
out
over
the
3
5
10,
20
and
30.
F
for
those
plans
that
have
that
history,
you
can
see
they've
consistently
been
able
to
provide
a
return.
That's
above
Benchmark
and
I
always
like
to
look
at
the
trailing
five
year,
especially
as
we're
head
getting
into
a
Actuarial
valuation
period,
because
you
know
returns
and
gains
and
losses
are
smooth
over
a
five
year
period.
So
you
can
see
over
the
five
year.
You
know
the
larger.
Well,
Legacy
assets
have
been
just
a
little
bit
above
10
percent
over
a
trailing
five
year.
F
F
Know
three
three
months
left
in
this
current
fiscal
year.
Hopefully
it
won't
be
as
dramatic
as
the
end
of
of
last
year
last
fiscal
year
slide.
Four
is
just
a
cash
flow
snapshot.
As
of
the
end
of
February,
we
weren't
quite
able
to
close
out
the
month
of
March
from
a
accounting
standpoint,
so
this
is
the
eight
months
ending
February
28th,
comparatively
between
the
current
fiscal
year
23
and
the
prior
eight
month
period
that
ended
February
of
2022.
F
A
couple
of
things
just
quick
to
point
out
is
you
know
given
and
we've
said
this
at
previous
meetings.
You
know,
given
the
funding
level
of
both
judicial
and
legislative
retirement
plan
and
the
the
the
employer
contributions
that
have
been
requested,
we've
seen
those
employer
contributions
come
down
and
thus
for
thus
we're
gonna.
We
expect
to
see
some
negative
cash
flow,
and
so
you
can
see
in
that
gray,
shaded
net
cash
flow
before
asset
gain
losses
that
the
plans
have
experienced
negative
cash
flow
across
both
22
23.
F
Now
that's
been
offset
somewhat
with
the
realize,
gain
losses
and,
as
expected
with
the
current
fiscal
year,
we've
seen
better
results
on
the
investment
side,
so
the
realized
unrealized
net
asset
gain
has
been
quite
a
bit
higher
and
so
both
plans
as
it
stands
today,
as
of
the
February
28th,
have
been
able
to
add
assets
and
increase
their
net
position.
F
F
So
realized
is
anything:
that's
effectively
been
sold
right
and
we've
realized.
You
know
if
I
own,
a
security
I
bought
it
I'm
reporting
it
as
of
today's
value,
if
I
you
know,
if
I
currently
still
hold
it,
that's
unrealized
right,
we
haven't
executed
that
I
bought
a
stock
at
ten
dollars.
It's
now,
20.
I
would
have
an
unrealized
gain
of
ten
dollars.
G
F
Most
of
I
mean
most
of
most
of
us,
were
Mark
to
market
right,
so
we're
all
of
our
fixed
income.
Assets
are
largely
corporate,
they're
priced
and
so
they're,
based
on
a
fair
value.
So,
as
rates
have
gone
up,
the
the
value
of
the
portfolio
has
gone
down
now,
in
our
case,
you
know
we're
not
selling
bonds.
So
as
long
as
we
hold
that
to
maturity,
we're
going
to
get
you
know
the
yield
and
the
full
par
amount,
and
so
in.
In
our
case,
we
haven't
had
to
sell
anything.
G
F
Righty
Slide
Five
is
just
a
quick
update
with
regards
to
the
most
recently
finished
legislative
session.
F
There
were,
there
were
a
handful
of
bills
that
you
know
had
an
indirect
or
maybe
a
cursory
impact
on
jfrs,
but
for
today,
I
really
just
wanted
to
focus
on
House
Bill
236.
That
was
the
only
piece
of
legislation
that
really
had
a
direct
impact
on
us
and
required
and
requires
some
action.
F
The
board
the
board
had
discussed
this
bill
and
I
know.
Senator
Mills
had
a
similar
bill
that
had
been
introduced
prior
and
we
had
talked
about
here
at
this
committee
and
so
the
bill.
The
bill
had
been
discussed
pretty
prior
on
January
at
our
board
meeting,
and
we
also
had
a
just
recently
had
our
most
recent
quarterly
board
meeting
on
Friday
afternoon.
So
this
was
a
topic
of
discussion.
F
F
Secondly,
I
know
a
lot
of
the
members
of
this
board
are
aware
that
there
are
differences
between
jfrs
TRS
kppa.
However,
you
know
specifically
with
the
investment
side.
We
we
just
wanted
to
highlight
that
with
regards
to
Investment
Management,
we
don't
have
a
staff
of
of
investment
professionals
like
TRS
and
kppa.
F
So
you
know
they
are
a
sole
investment
provider.
They
have
discretion
over
what
assets
we
buy,
what
assets
we
sell.
They
also
are
very
involved
with
the
asset
allocation
side
of
things,
and
so
the
board
just
wanted
to.
You
know
make
sure
that
you
know
we
clearly
articulated
that
there
were
differences,
as
our
sole
investment
provider
bear
does
vote
our
our
proxies.
They
do
have
an
approved
policy.
The
trust
company
has
their
own
policy,
which
is
separate
from
their
mutual
fund
line
of
business,
and
so
the
board
is
is
contemplating
you
know.
F
House
Bill
236
allows
them
to
either
adopt
their
own
policy
or
to
adopt
that
of
their
sole
investment
provider,
and
so
staff
is
working
alongside
with
some.
You
know,
other
third-party,
our
legal
counsel,
just
to
see
what
makes
the
best
sense
for
us,
but
we
plan
to
do
that
in
July.
As
far
as
the
bill
is
concerned,
you
know
a
lot
of
the
reporting
aspects
that
were
required
were
prepared
to
meet,
and
so
it
really
won't
be
a
ton
of
you
know.
F
F
And
then,
lastly,
the
last
slide
slide.
Six
just
highlights
a
few
upcoming
Actuarial
activities.
The
board
is
prepping
for
their
full
funding
valuation,
which
will
be
conducted
conducted
as
of
July
1,
2023
I
know
we
talked
about
this
back
in
November,
but
we
do
funding
valuations
every
other
year
on
the
odd
numbered
years
and
and
preparation
for
the
biennial
budget.
F
F
They're
going
to
have
you
know
USI,
which
is
our
third
party
actuary,
as
well
as
Baird,
provide
an
update
on
you
know:
Capital
Market
assumptions,
our
current
targeted
asset
allocation
and
then
also
you
know
we'll
take
a
look
at
what
you
know.
The
trend
in
the
industry
is
with
regards
to
assumed
rate
of
returns
now,
with
with
regards
to
economic
assumptions,
really
are
assumed
rate
of
return
or
what
you
might
often
hear
called
disk
the
discount
rate
or
the
rate
used
to
Discount
the
liabilities.
F
It's
really
our
only
economic
assumption,
with
the
passage
of
our
housekeeping
bill
in
2022,
we've
moved
to
a
level
dollar
amortization
method,
so
we
don't
have
the
payroll
growth
assumption
that
I
know
this
committee
and
board
has
spent
countless
hours
talking
about
and
the
impact
it
can
have
on
the
employer
contribution.
That's
effectively,
you
know
we're
at
zero,
and
so
there
really
will
be
no
review
of
that,
whereas
some
of
the
other
plans,
you
know
that
would
be
an
economic
discussion
assumption
that's
discussed.
F
Lastly,
the
board
also
has
asked
USI
to
take
a
look
at
the
recent
recommendations
that
were
made
by
milliman
during
the
Actuarial
audit
that
was
presented
here
in
February,
and
so
during
that
July
meeting
we're
going
to
take
a
look
at
several
of
those
recommendations.
You
know
the
most
notable
was
the
inflation
rate
assumption,
but
I
know
they
also
had
a
recommendation
with
regards
to
the
how
the
plans
account
for
the
interests,
the
upside
crediting
on
the
cash
balance
plan,
so
that
will
be
discussed
as
well.
The
board
hopes
to
have
the
funding
valuation
results.
F
You
know
no
later
than
November
15th,
which
they
would
present.
Those
here
to
this
this
group,
as
we
look
forward
to
the
by
the
budget
discussion
in
2024..
F
C
So
I
just
want
to
go
back
just
very
briefly
to
reporting
for
House
Bill
236,
and
it
sounded
like
that.
You
guys
didn't
really
have
a
whole
lot
of
heartburn
about
what
what
may
or
may
not
need
to
be
done
as
far
as
any
changes
or
any
reporting
I
would
just
ask
that
and
I
guess
what
if
I
heard
right
if
July
is
when
you'll
really
be
taking
a
deep
look
at
that,
is
that
correct.
F
So
thankfully,
the
the
the
bill
sponsor
was
willing
to
work
with
us.
You
know,
as
the
bill
was
originally
written,
it
was
going
to
put
a
little
bit
of
administrative
burden
on
a
group
that
largely
doesn't
handle
the
investment
side
of
things.
I
can't
remember
if
it
was
a
committee
sub
or
a
floor.
Amendment
provided
some
carve
out
language
specific
to
our
plan,
which
really
eased
that
burden
and
allows
us
to
kind
of
continue
to
operate.
F
As
we
were
Baird
again
as
a
contractually,
you
know,
acknowledged
fiduciary,
with
full
discretion
over
the
assets
was
Voting
our
proxies.
They
do
utilize
a
third
party
platform
for
research,
but
they
just
they
just
met
with
us.
Friday
they're
voting
each
individual
stock.
You
know
individually.
Now
we
only
own,
you
know
21
22
stocks.
So
it's
it's
not
a
tremendous
burden
like
some
of
the
other
plans
that
have
thousands
of
Holdings,
but
they
had
already
been
doing
that.
F
F
Trs
and
kppa
do
in
fact,
I
think
they
both
already
have
policies,
we've
always
utilized
bears,
and
so
the
question
will
be
you
know:
are
we
comfortable
with
everything
that's
outlined
in
Bears
policy,
or
do
we
need
to
kind
of
do
our
own
and
then
and
then
direct
them
to
vote?
That
way
again,
you
know.
As
a
as
a
representative
of
a
we
have
three
staff
members.
F
None
of
us
are
investment
professionals,
regardless
of
what
we
did
in
our
prior
lives.
You
know
it's.
Some
of
these
plans
have
proxy
voting
policies
that
are
hundreds
of
pages
long,
and
there
are
a
lot
of
topics,
and
so
you
know
we
want
to
just
make
sure
that
we're
comfortable
that
we
are
acting
in
the
best
interests
of
our
members
and
I'm.
F
Not
sure
that
me,
you
know,
drafting
a
policy
on
employee
compensation
and
poison
pills
and
who
is
an
eligible
trustee
puts
our
members
in
the
best
position
relative
to
a
you
know:
fiduciary
who's
been,
you
know,
a
partner
of
the
board
for
30
years,
so
I
just
haven't
had
a
time
to
really
fully
look
at
their
policy
to
make
sure
that
it
covers.
You
know
some
of
the
things
that
house
bill
236.
You
know
required.
A
C
So
I
I
know
that
the
legislation
includes
a
lot
of
reporting
requirements.
I
would
just
ask
that,
as
part
of
that,
if
you
see
any
issues
with
being
able
to
do
what
236
requests
or
requires
just
let
us
know
if,
if
there's
any
any
harp
or
another,
we
don't
know
about
yet
and
I
know.
You
need
some
time
to
look
at
that
too.
So
so.
A
You
and
well
it's
good
to
good,
to
hear
I
knew
that
but
good
to
hear
you
re-emphasize
that
you've
moved
to
level
dollar
and
on
that
assumption
and
not
percentage
of
payroll.
That's
that's
good
news.
You
and
I
know
you
talked
about
assumptions
but
I.
Don't
know
how
you
crystal
balls
working
today,
but
do
you
anticipate
any
changes
in
assumptions
in
this
next
go
around
well.
F
I
think
I
don't
have
a
crystal
ball
and
I.
You
know
don't
want
to
speak
on
behalf
of
our
board
or
you
know
our
inflation
assumption
was
clearly
higher
as
a
result
of
the
audit.
You
know
we
were
about
a
half
a
percent
higher.
Now
the
assumed
rate
of
return
is
usually.
Is
you
hear
a
lot
of
folks
talk
about
a
building
block
approach?
It's
two
blocks
that
kind
of
come
together,
the
inflation
assumption
and
the
real
rate
of
return
assumption.
F
F
I
could
I
wouldn't
be
surprised
if
they
dropped
that
ready
to
return
assumption
a
little
bit?
Given
that
you
know
the
plans
are
projected
to
reach
100
funded,
you
know
you
can
lower
that
hurdle
a
little
bit
and
you
don't
have
to
be
quite
as
aggressive
on
the
investment
side.
I
think
the
challenge
for
for
the
trustees
is
that
they
have
to
act
in
the
best
interests
of
all
their
members,
and
so
you
know
they
have
Legacy
members
who
are
in
an
old
benefit
tier.
F
They
have
new
members
who
are
part
of
the
cash
balance
plan
and,
and
their
benefit
is
tied
to
some
level
up
upside
right.
The
the
more
successful
the
plans
are
at
investing,
so
they
can't
just
take
no
risk
right.
That
would
be
a
disadvantage
to
those
members
that
are
in
the
cash
balance
plan.
F
So
I
think
it's
finding
that
balance,
so
I
wouldn't
be
surprised,
I
mean
I,
think
it's
six
and
a
half
the
the
plan
is
already
probably
near
average
or
slightly
below
average,
of
of
where
other
plans
are,
but
yeah
I
wouldn't
be
surprised.
I
wouldn't
see
something
dramatic,
but
I
would
not
be
surprised
if
you
saw
some
incremental
change.
A
Thank
you
Beau
and
representative
Tipton
has
a
question.
H
Thank
you
Mr
chairman
Bo,
appreciate
you
being
here
with
us
again
today,
you
mentioned
inflation,
we're
all
painfully
aware
of
the
impact
that
inflation
has
had
on
everybody
in
our
state
and
including
our
retirees,
and
we
hear
the
talk
of
colas
all
the
time.
I
F
So
colas
have
always
been
tied
across
kind
of
all.
You
know
kppa
and
jfrs.
So
our
last
Cola
was
a
was
a
plot,
effective
July,
1
of
2011.
I,
guess
that
would
be
considered
a
fiscal
year,
2012
Cola,
which
I
think
is
consistent
and
I
and
if
it's
I
may
be
speaking
outside,
and
so
maybe
kppa
I
think
the
cola
amount
was
the
same
too.
F
As
far
as
the
percentage
you
know,
prior
to
2009,
it
was
tied
to
CPI,
and
so
there
were
a
couple
of
years
there
you
know
I
think
they
began
in
the
90s
early
90s
that
it
may
have
been.
You
know
2.35,
but,
and
then
the
last
one
was
one
and
a
half
as
of
July
1
11.,
okay,.
H
Thank
you,
nope
Mr,
chair
Kardashian,
additional
question.
Yes,
sir,
we're
talking
about
the
cash
balance
plans
for
the
JRP
lrp
members.
Those
members
have
an
option
of
going
in
that
plan
or
going
into
the
kers,
not
hazardous
plan.
Do
you
have
any
feel
for
their
percentage?
What
percentages
go
within
to
each
individual
plan?
Yeah.
F
So
they've
always
had
the
option
pre-cash
balance
or
after
it's
a
it's,
an
interesting
Dynamic
that
we're
dealing
with
right
now.
So
I'll
answer
it
two
ways:
if
the
play,
if
the
new
member
has
any
prior
service
with
kers
or
cers,
that
would
would
get
them
pre-2014,
it's
almost
exclusively.
They
go
to
kers.
The
most
recent
data
I
can
tell
you.
Is
we
had
55
new
judges?
F
So
this
is
you
know
outside
of
legislature,
we
had
55
new
judges
as
a
result
of
the
elections
and
terms
of
those
55
all,
but
we
had
36
join
kers
all,
but
two
had
pre-2014
participation
dates.
So
it's
a
financial.
You
know
real
benefit.
Now
that
leaves
you
know,
23
people
who
did
not
have
JRP
service
or
prior
kers
service,
and
so
all,
but
two
of
those
came
to
JRP.
F
You
don't
have
as
many
folks
on
the
legislative
side
that
have
you
know
the
pre
public
service.
So
we
we
had
a
possibility
of
32
new
legislators
with
regards
to
the
2023
January
1
new
new
term,
beginning
18
came
to
lrp
14
stayed
at
kers,
so
it's
about
you
know
a
little
over
half
and
then
but
half
of
those
14
already
had
some
service
either
with
kers
or
cers.
So
my
general
rule
of
thumb
is
about
two
out
of
three
will
come
to
jfrs.
F
If
there's
no
incentive
and
so
I
think
you
know,
that's
probably
a
pretty
good
guess
two
out
of
three
on
the
JRP.
It
seems
to
be
that
most
of
the
judges
want
to
be
here,
and
so
they
almost
all
come
to
jfrs.
F
Well,
just
full
disclosure
I'm
on
my
own
today
my
office
is
unstaffed,
so
I'm
gonna
exit
stage
left
not
because
I'm
not
interested.
But
if
anyone
has
a
question,
I
know:
Brad
Senator
Higdon,
either
of
the
chairs,
are
feel
free
to
reach
out
and
let
me
know
and
I'll
be
glad
to
Circle
back
as
quickly
as
I
can.
Thank.
D
Sure
I
I
usually
do
or
always
do
start
off
with
a
thank
you.
We
appreciate
the
opportunity
to
speak
at
ppob,
but
we
also
appreciate
the
fact
that
we've
been
getting
full
funding
since
2014
and
we've
been
getting
additional
Appropriations
both
last
year,
215
million
to
the
state
police,
which
took
the
contribution,
the
contribution
rate
from
27
percent
of
to
50,
and
it
took
the
funded
stat.
I'm
sorry
took
the
contribution
rate
from
147
down
to
99,
took
the
funded
status
from
27
percent
up
to
a
little
over
50.
D
That
was
the
last
year
this
year,
we've
already
received
180
million
dollars
and
we'll
received
up
to
240
by
the
end
of
the
year.
You'll
see
the
impact
of
that
on
our
cash
flow.
We
also
have
four
of
the
five
Insurance
trusts
are
over
funded,
the
one
that's
not
is
just
under
80
percent,
so
most
of
you
may
know,
Most
states,
don't
they
they
don't
pre-fund
their
in
their
health
insurance,
and
we
do
so
we're
one
step
up
and
we're
over
funded
and
for
the
five
trust.
So
that's
the
good
news.
A
Mr,
eager,
don't
don't
forget
to
mention
House
Bill
551,
to
put
some
tokens
in
your
in
your
treasury,
starting
I.
Guess
not
when
it's
implemented
the
Sports
gaming.
D
Well,
I
can't
speak
specifically
to
that
I
know
it.
I
can't
give
you
the
numbers,
but
yes,
551
is
gonna,
we'll
provide
additional
Revenue
to
us.
The
I
look
forward
to
today
when
the
good
news
is
that
the
rating
agencies
improve
the
ratings
on
Kentucky
bonds.
D
I,
don't
know
the
exact
criteria
where
the
line
that
we
have
to
cross
to
get
there,
but
I
I
really
look
forward
to
it.
We've
been
doing
the
legislation
been
doing,
making
an
issue
since
2014
that
have
improved
the
systems.
New
Jersey
in
2022
got
a
bumped
by
all
three
rating
agencies
and
in
March
of
this
year,
they've
gotten
another
bump
for
two
of
the
agencies
and
if
you
look
overall
they're
not
in
any
significantly
better
funded
position
than
we
are.
Unfortunately,
our
estate
plan
is
the
worst
of
the
five
pension
plans.
D
Let
me
give
you
some
highlights
here
that
you
that
you'll
see
as
we
go
I'm
going
to
go
through
investment
performance
and
cash
flow
cash
flow
years
ago,
got
very
little
attention,
but
it's
it's.
It
really
needs
it.
We
don't
want
to
be
in
a
position
where
we're
having
to
sell
Securities
in
order
to
make
benefit
payments,
but
the
with
regard
to
the
Investments.
We
are
on
track
to
have
all
the
five
plans
exceed
their
their
their
assumptions.
D
I
say
on
track
because
we're
largely
there
or
just
there
as
long
as
the
the
final
three
months
of
the
year
hold
up
from
a
cash
flow
standpoint,
oh
by
the
way
that
we
are
exceeding
our
benchmarks,
with
every
one
of
the
pension
and
insurance
funds,
cash
flow,
where
cash
flow
positive,
with
six
of
the
ten
funds
and
the
10
being
five
pension
and
five
insurance.
But
six
of
the
ten
are
positive
cash
flow.
The
four
aren't,
the
four
that
aren't
are
negative
in
total
by
32
million.
D
Shape
you'll
see
more
detail
in
a
minute,
we're
in
excellent
shape
on
on
cash
flow.
Yeah
I'm
going
to
show
you
this
because
it
tells
a
story:
it
tells
the
story
of
diversification.
This
is
the
third
quarter
returns
for
a
variety
of
asset
categories.
In
this,
as
you
know,
we
allocate
assets
on
a
very
specific
and
thoughtful
way
to
to
Investments
that
tie
to
many
of
these.
Many
of
these
asset
asset
classes.
Look
at
the
top
wilshere
LT
growth
in
the
in
the
third
quarter.
Up
15.9.
D
Look
three
from
the
bottom
Wiltshire
large
gap,
value
of
one
percent.
The
this
really
demonstrates
the
the
need
for
diversification.
We
can't
if
we
had
half
of
our
money
in
the
growth
and
half
and
value
we'd
average
out
at
about,
let's
say
five
percent,
if
I
mean
not
seven
percent,
and
if
you
look
at
the
the
Ft
about
five
down
five
or
six
down,
the
Ft
will
shoot
five
thousands
of
seven
three.
D
So
if
you
had
half
your
assets
in
one
half
and
the
other
you'd
be
doing
about
seven
percent,
yeah
and
I
can
tell
you
that
there
are
periods
of
time
recently
when
those
numbers
would
flip-flop.
So
we
don't
want
all
of
our
money
on
any
either
one
of
those
where
the
volatility
has,
but
by
balancing
it
out,
we
smooth
out
our
returns
go
ahead.
D
So
here
is
the
pension
returns
as
of
unaudited
preliminary,
but
as
of
March
31st
of
2023
I
want
to
focus
on
the
second
column,
which
is
fiscal
year
to
date,
and
this
is
what
I've
commented
about.
Looking
like
we'll
meet
our
assumptions.
K-9
has
up
4-3
indexes
up
four
two
and
similarly
six
percent
six
point.
Four
for
Cena
for
C9
has
6.5
and
5
and
all
of
those
are
exceeding
their
plan
index
benchmarks.
D
The
index
Benchmark
says
it's:
the
targeted
our
targeted
asset
allocation
earning
the
market
returns
so
by
either
overweighting
or
underweighting,
properly
or
picking
managers
or
picking
stocks
that
outperform
in
all
five
of
those
categories
we've
exceeded
for
every
one
percent,
we're
able
to
to
beat
The
Benchmark,
it's
worth
230
million
dollars.
So
even
a
half
percent
increase
115
million
dollars.
More
than
had
we
simply
invested
in
index.
Funds
on
at
the
targeted
allocation
longer
term
returns.
D
Don't
fluctuate
that
great
year
to
year,
so
we've
been
asked
to
provide
30-year
returns
to
7.5
7675,
pretty
pretty
consistent,
I
think
Bose
numbers
were
in
the
eighths
mid
eights
and,
and
it
comes
back
to
the
fact
that
we
have
much
less
allocation
to
equities
than
than
the
teachers
do
and
they've
benefited
by
that
the
higher
returns
that
equities
have
earned
insurance
is
going
to
look
pretty
much
the
same.
D
The
allocations
in
insurance
for
canine
has
and
state
police
are
geared
more
highly
toward
equities,
so
the
returns
there
are
going
to
be
higher
but
again
we're
in
the
in
the
six
percent
range
and
barring
any
kind
of
a
problem.
We
should
be
exceeding
our
benchmarks:
let's
go
to
cash
flow.
Let
me
walk
you
down
the
a
vertical
column
here.
The
first
column
fiscal
23.
K9
has.
Let
me
just
kind
of
walk
you
through
the
methodologies.
First
number:
69
million.
D
That's
what
we
got
from
Member
contributions,
you
you
will
know,
except
from
fiscal
22
because
of
the
April,
largely
because
of
the
eight
percent
increase
in
compensation
salaries,
employer
contributions,
75
million
the
the
we'll
call
it
the
house
bill.
Eight
number
is
599
million,
it's
9
million
less
than
it
was
last
year.
Some
of
that
will
be
attributable
to
a
variety
of
reasons,
but
the
end
of
the
year,
we'll
dissect
that
you
compare
it
to
what
it
would
have
been
had.
We
not
had
house
built
a
there's
there.
D
Last
year
there
was
about
a
25
million
dollar
savings.
I.
Think
there'll.
Be
that
again
something
in
that
order
again
this
year,
net
investment
income
is
53.8
up
from
a
year
ago
because
of
higher
interest
rates,
benefit
payments
roughly
flat
6899
administrative
expenses
8.7.
So
we
had
total
cash
inflows
of
976
and
outflows
of
698.
We
had
a
net
contribution
at
278
million.
That's
incredible!
If
you
look
at
other
Retirement
Systems,
we
also
had
44
million
in
unrealized
and
realized
gains.
So
change
in
the
position
was
322
million.
D
I,
say
they're,
really,
there's
three
ways
to
look
at
cash
flow.
One
simply
says:
what
are
we,
what
are
we
drawing
in
in
country
in
contributions
and
what
are
we
paying
out
in
benefits
and
expenses,
and
is
that
a
positive
or
negative
number,
that's
number
one
number
two
says
all
right:
you're
also
getting
income
from
Investments
dividends
and.
D
What's
what's
the
impact
there
and
the
final
one
says,
let's
throw
in
the
gain
or
a
loss,
it's
not
really
a
cash
flow,
but
it's
just
a
change
in
the
values
and
I
I.
Think
the
second
one
is
the
most
important.
If
you're
wanting
to
say
talk
about
liquidity
in
the
plan,
are
we
getting
enough
cash
in
excess
income
versus
benefits
and
expenses
and
investment
income
from
dividends
and
interest?
Are
we
gonna?
Definitely
we
don't
have
sales
Securities
to
make
distributions.
That's
a
key
one
and.
A
D
So
far
so
far
yes,
yeah
I
jumped
over
that
number
I
apologize.
That's
a
big
number
sitting
there.
Five
down
from
the
top
general
fund
appropriation,
180
million
last
year,
was
Zero
again.
The
state
police
last
year
in
June,
when
we
get
to
June
they'll,
show
a
215
million
dollar
number.
D
Thank
you
for
pointing
that
out,
but
we've
been
asked
also
to
say,
what's
the
net
contribution
as
a
percent
of
as
a
percent
of
the
cash
flow
as
a
percent
of
the
assets
rather
and
the
net
contribution
of
224
million
is
6.6
percent
of
the
assets
and
if
you
looked
at
I
I
was
searching
for
data
recently.
I
can't
find
enough
of
it,
but
my
experience
would
say
that
the
typical
plan
is
negative.
D
Cash
flow
one
to
three
percent,
so
they're
at
that
point
in
time,
they're
relying
on
gains
in
in
investment
income
and
gains
market
value
gains
in
order
to
have
their
funds
grow.
D
I
can
walk
through
all
of
the
others.
If
you
choose
I
think
again,
cash
flow
is
in
aggregate,
very
positive
and
six
out
of
the
ten
it's
positive
and
improving
in
almost
every
one
of
them.
H
Thank
you,
Mr
chairman
Dave,
appreciate
you
all
being
here.
You
pointed
out
and
I
understand
the
reason
for
the
member
contribution
increase,
particularly
in
the
state
police,
on
a
percentage
basis.
My
question
goes
to
the
employer
contributions
as
those
salaries
have
increased.
D
D
I'm
being
corrected,
I
I
I
didn't
think
that
was
the
case
Aaron's
step
in
okay.
D
D
To
see,
but
not
gay
but
I,
think
so
I
thought
it
was
the
other
way
around.
I
will
clarify
that
my
apologies,
the
pension
contribution
on
C.
We
have
contribution
inflows
of
635
outflows
of
623
and
that
of
12.
I
realizing
unrealized
gains
were
281,
so
we're
the
change
in
the
position
is
293..
It
took
the
took
the
fund
from
8.0
billion
to
8.35
billion.
D
D
What
I'll
call
your
attention
to
the
middle
column,
where
that's
the
impact
of
no
employer
contributions
or
actually
the
crude
liabilities,
are
that's
the
result
of
the
plan
being
overfunded
for
several
years
back
to
the
left,
K-9
has,
which
is
not
overfunded.
Employer
contributions
were
23
million.
The
Actuarial
crude
liability
contributions,
58.
D
D
and
the
funds
went
from
1.3
billion
to
1.386
billion.
The
cash
flow
was
positive,
1.42
percent
and
then
and
the
yield
on
the
portfolio
was
1.4.
I
I
kind
of
go
back
to
the
cash
flow
is
extremely
good.
In
aggregate
again,
it's
431
in
aggregate
positive
and
32,
where
it
was
negative.
So
we
feel
good
about
where
we
stand
with
regard
to
cash
flow,
and
a
lot
of
that
comes
from
the
fact
we're
getting
these
higher
higher
contribution
rates
and
the
additional
Appropriations.
D
On
the
seaside,
not
quite
as
good
a
picture,
but
it's
not
it's
not
critical
cash
inflow
in
the
blue
is
127.5.
Outflow
is
921
and
that
was
35.
realize
gains
106
change
in
position
142,
but
net
contributions
were
negative.
Nine
one
so
we're
relying
on
investment
income
to
to
create
the
positive
35
million
that
contribution
of
35
million
included
44
million
of
net
investment
income.
When
you
strip
that
out
it
brings
it
down
to
negative
nine,
a
negative
0.29
percent.
D
D
Legislative
update,
any
questions
by
the
way
before
we
move
on
that
legislative
update
first
quickly,
statutes
require
that
the
Senate
appointments
be
ratified
by
the
I,
never
confirmed
by
the
Senate,
and
we
did
get
Lynn
Hampton,
Ramsey,
Bova
and
William
Summers
confirmed
and
this
session
it's
been,
the
all
three
trustees
have
been
sworn
in
and
are
actively
participating
in
the
boards.
D
Senate
Bill
20,
prohibiting
the
use
of
or
a
download
of
tick
tock
on
any
state
government
Network
or
any
state
government
issued
device.
As
far
as
implementation
is
complete,
I've
talked
with
RIT
people.
We're
never
have
never
been
aware
of
a
tick
tock
issue
in
the
past,
and
we
it's
prohibited
going
forward.
I,
so
I
think
we're
we're
in
compliance
House,
Bill
236.
D
This
is
a
bill
that
got
out
of
discussion.
It
doesn't
really
change
a
whole
lot
of
what
we
do
as
it
relates
to
the
Investments
it
does
with
the
relates
to
proxies,
but
it
says
that
we
as
fiduciers
can
only
and
consider
pecuniary
factors
when
making
investment
decisions
and,
and
what
are
those
factors?
It's
a
factor
that
affects
in
some
way
the
financial
aspect
of
of
a
corporation.
D
It
would
affect
its
cash
flow,
but
it
reflect
its
earnings.
It
would
reflect
his
leverage,
whatever
it
might
be.
That
would
be
could
be
positive
or
negative,
but
you
know
we're
looking
at
we're
only
making
decisions
on
those
kind
of
factors
we're
not
making
a
non-fictionary
factors
such
as
the
makeup
of
board
of
directors
or
the
fact
that
they're
an
energy
company-
and
we
ought
to
you
know
there-
are
many
states
now
that
are
prohibiting
Investments
many
state
plans
prohibiting
investments
in
energy
companies.
D
D
Or
staff
designated
or
proxy
voting
service
we
have.
We
have
the
boards
have
approved
proxy
voting
statements.
We
are
working
with
our
investment
managers
who
manage
Equity
Securities
on
getting
them
to
agree
to
comply
to
our
proxy
voting
and
they
all
to
my
knowledge,
utilize
ISS-
is
the
proxy
voting
service
of
the
12
managers
that
we
have
the
whole
equities.
Nine
have
come
into
compliance
and
agreed.
Two
were
very
close
and
just
kind
of
finalizing
the
agreement
in
the
paperwork
and
one
there
are
some
added
negotiations
that
need
to
take
place.
D
D
I
will
say
it
does
require
proxy
voting,
be
reported
to
the
on
a
quarterly
basis,
we're
looking
at
the
what,
how
much
additional
work
that's
going
to
take
and
how
we
can
do
it
most
effectively
and
to
representative
Johnson's
point.
If
we
have,
if
it
looks
like
there's
a
problem,
we
will
raise
our
hand.
C
Nice
segue,
just
very
briefly,
I
just
want
to
make
sure
that
that
we're
fully
understand
where
we
are
here
in
your
implementation
process.
All
right,
let
me
back
up
first,
your
your
bullet
four
on
summary,
require
the
the
quarterly
reports.
When
do
you
anticipate
the
first
quarterly
report
I
would
have
I
would
think
that
maybe
the
end
of
June,
we
could
start
hearing
these
reports,
but
I.
You
may
know
something
that
I
don't
I.
D
D
C
C
D
D
D
B
E
E
J
Okay,
House
Bill
506.
It
reinstates.
A
Let
me
interrupt
you
if
I'm
sorry,
but
auditor
Harmon
had
a
question.
I
want
to
get
him
in
there
before
we
get
started
on
a.
I
Thank
you,
Mr
chairman.
This
is
along
the
lines
of
what
was
just
asked
as
well,
but
I
just
want
to
confirm.
So
if
someone
adopts
a
proxy
voting
service,
then
that
we
are,
we
have
already
entered
into
contracts
or
they
are
familiar
that
the
only
way
they
can
vote
are
proxies
is
in
a
precurinary
factors.
They
cannot
utilize
any
other
factors,
even
the
proxy
voting
service
itself.
That's.
J
J
It
also
changes
the
required
breaking
service
for
retired
re-employed
members
to
One
calendar
month
for
all
retirees,
that's
non-hazardous
and
hazardous
alike,
and
the
effective
date
of
the
bill
is
January,
1st
2024.
So
that
means
for
retirement
dates,
January,
1st,
2024,
that
payment
option
will
be
available
and
the
the
break-in
service
will
change
for
those
people.
This
we're
in
process
with
the
design
design
teams
are
already
meeting.
We
need
new
factors
from
the
actuary
we're
updating,
correspondence
and
publication,
but
we
expect
everything
to
be
completed
in
the
fall
of
2020
E3.
D
House
Bill
587
exempts
the
kppa
internal
auditor
position
from
being
from
hiring
and
employment
Provisions
in
18a,
45a
and
64.640,
and
that
the
auditory
will
report
directly
to
the
kppa
board
or
board
subcommittee
Authority
The
Authority
will
conduct
an
annual
performance
review
of
that
position.
I
would
say
that
effectively.
D
This
is
the
way
we
have
operated,
with
the
exception
that
that
person
was
not
exempt
from
18a,
45a
and
640
in
order
were
they
getting
an
annual
performance
review,
but
the
reporting
relationship
to
the
to
the
board
and
the
audit
committee
is,
is
essentially
being
maintained
as
it
was
implementation.
D
Our
staff
has
prepared
a
memo
to
the
kpba
board
outlining
the
requirements,
so
the
steps
for
complying
with
587
the
memo
is
going
to
be
discussed
at
our
board
meeting
on
April
27th.
The
our
annual
meeting
there's
a
lot
of
there
are.
There
are
certainly
specific
things
in
the
bill,
but
there
are
things
that
are
not
specific
as
as
as
simple
as
who
approves
time
sheets
that
we're
we're
going
to
work
with
the
board
to
determine.
D
Do
they
want
to
stick
on
those
kind
of
roles,
or
are
there
certain
administrative
things
they
want
to
rely
the
staff
to
do,
and
so
that'll
be
that's
Incorporated
in
the
memo
that's
going
to
be
reviewed
on
the
27th
suggested
timeline.
Is
that
we'll
have
these
accomplished
by
during
April
to
June
of
2023
I?
Think
the
specific
date
is
June
the
13th
there?
We
will
be
done
by
that
time.
That's
90
days
after
the
signing
of
the
bill.
D
Actuarial
assumption
update
so
GRS
is
finalizing
the
the
experience
study
for
both
the
economic
and
demographic
assumptions
for
cers
and
KRS.
They
are
within
a
week
of
having
them
completed,
so
we
anticipate
them
to
be
ready
in
the
next
couple
of
weeks.
This
was
written
a
week
ago
once
the
boards
of
the
opportunity
to
review
the
material
they'll
decide
on
making
assumptions.
D
They
have
C
and
K
both
have
their
board
meetings
in
early
June
and
that's
when
the
assumptions
will
be
discussed
using
these
experience
studies
so
and
they
will
they
have
Hospital
76.
The
economic
experience
must
be
reviewed
again
no
later
than
2025.
A
demographic
experience
must
be
studied
again
no
later
in
2028.
The
boards
will
likely
reevaluate
the
need
for
either
of
the
assumptions
annually,
but
at
least
on
a
minimum
every
two
years.
D
So
a
question
came
up
earlier
about
changes
in
assumptions.
That's
the
C
and
the
K
boards
will
make
those
decisions.
Kppa
does
not
do
that.
We
don't
have
the
authority
to
the
I.
Think
there'll
be
I,
think
it'll
be
a
robust
discussion.
Perhaps
with
interest
rates
having
Arisen
and
Equity
values
haven't
come
down.
We
do
have
what,
by
industry
standards
a
pretty
pretty
conservative
assumptions,
either
five
and
a
quarter
or
six
and
a
quarter
so
I
would
invite
you
and
I
will.
D
J
J
First
we'd
like
to
just
go
over
what
is
a
line
of
duty
incident.
A
line
of
duty
incident
is
a
single,
traumatic
event
or
act
of
violence
that
are
that
occurs
as
a
result
of
Performing
one's
job
duties
or
is
related
to
one's
job
duties.
J
So
one
thing
that
I
did
want
to
point
out:
that
is
a
distinction
between
hazardous
and
non-hazardous,
is
that
hazardous
members
are
covered
under
these
benefits
as
soon
as
they
clock
in
on
day,
one
non-hazardous
members
have
to
have
a
month
of
service
credit,
meaning
that
they
would
have
to
have
worked
enough
at
least
100
hours
in
a
month
or
80
hours.
J
J
J
J
So
the
benefit
does
not
change
if
the
spouse
remarries
once
they've
started
receiving
benefits
and
then
Senate
Bill
169
in
2021
it,
the
minimum
disability
retirement
benefit
for
any
hazardous
member
or
a
non-hazardous
member,
in
a
position
that
can
be
certified
as
hazardous
who
is
approved
for
total
and
permanent
change
from
25
percent
of
from
up
to
75
percent
of
map,
like
the
benefits
that
were
in
the
deaf
in
line
of
duty.
J
So
again,
like
I,
mentioned
before,
all
non-hazardous
line
of
duty
are
by
definition,
total
and
permanent,
but
they
only
get
the
enhanced
benefit.
If
that
position
can
be
certified
as
a
hazardous
position,
this
one
also
expanded
the
definition
of
depend,
a
child
to
include
a
disabled
dependent
for
total
and
permanent
line
of
duty
benefits
and
the
health
insurance
benefit
for
the
member
spouse
and
dependent
children
pays
a
hundred
percent
of
the
contribution
rate,
regardless
of
the
members
Insurance
here
so
I.
J
And
here
we
just
have
a
few
statistics:
these
are
our
new
comparing
our
new
disability
retirement
recipients
in
fiscal
year,
21
and
22..
We
have
the
total
number
of
recipients,
and
then
we
have
you
can
see
in
2021
there
was
one
individual
who
was
approved
for
hazardous,
hazardous,
total
and
perm
permanent
in
line
of
duty
and
so
receiving
those
enhanced
benefits
and
then
in
2022
I'm,
sorry
that
was
in
K
hazardous
and
then
in
2022.
J
J
Then
we
have
just
looking
at
all
of
the
total
inline
of
Duty
and
Duty
related
recipients
that
we
have
across
the
plans
in
this
next
graph
and
then
those
who
qualify
for
the
enhanced
benefit
under
the
total
and
permanent
enhanced
benefit.
So
we
have
that
broken
down
by
plan,
and
you
can
see
that
there
are
four
members
who
are
receiving
that
in
hand
those
enhanced
benefits
and
then
for
the
active
death
survivor
benefits
again.
J
We've
compared
fiscal
year,
21
and
22,
showing
the
total
deaths
and
the
the
duty
related
in
the
in
and
the
inline
of
Duty
deaths
that
would
have
received
the
enhanced
benefit
here.
Another
point
to
make
the
legislation
our
incentive,
Senate
Bill
169,
also
required
that
we
report
to
the
ppob
in
November
of
each
year.
The
number
of
members
who
qualify
for
these
benefits,
as
well
as
the
amount
of
benefit
the
total
amount
of
benefits
that
are
being
paid
out
by
plant.
A
Do
you
mind
explaining
the
that
last
new
Act
of
death
survivor
benefits
the
numbers,
there's
some
fairly
large
numbers
on
there?
Can
you
explain
a
little
better
or
a
little
more
in
depth?
What
those
numbers
mean?
Please
absolutely.
J
So
in
2021
the
total
number
of
active
members
who
died
there
were
660
total
and
in
2022
as
compared
to
725
400.
If
we
go
back
to
2021
400,
if
and
47
of
those
were
in
cers
non
has
16
were
in,
cers
has
176
were
kers9
has
and
then
in
the
next
column
the
kers
non
has
Duty
related,
that's
where
they
received
the
increased
benefits
based
on
what
house
bill,
185
provided,
and
then
we
had
21
in
KRS
hazardous
and
then
zero
in
the
remainder
of
those
columns.
J
So
there
were,
there
was
one
member
who
received
the
out
of
the
660
that
received
the
increase,
enhanced
benefit,
I'm,
sorry
and.
J
J
C
A
couple
of
quick
wrap-up
questions:
if
I
could?
Okay,
so
you
guys
are,
you
are
streaming
live
streaming
online.
All
your
boards
and
meetings
committee
meetings
at
this
point
is
that
correct.
D
Yeah
we've
been
doing
it
since
2019
I,
believe
and
you
go
to
our
website
and.
D
C
Good
and
then
last.
C
C
I
understand
last
question.
So
every
five
years,
there's
a
auditor
requirement
a
stay
audit
requirement.
Are
you
guys
on
deck
for
this
year?
Is
that
right.
D
I
would
say:
I
say
this
all
the
time
we
look
forward
to
audits,
so
we're
not
doing
something
right.
We
need
to
know
it
and
if
we're
doing
something
right,
we
need
to
know
that
as
well.
So.
A
A
Thank
you
one
last
question:
I,
don't
see
any
others
Dave
on
the
the
Actuarial
audit
we
just
completed
for
all
the
systems
and
the
recommendations
that
were
made
we'll
have
a
meeting
later
on
to
talk
about
those
but
I'm
sure
you've
looked
at
those
and
quite
familiar
with
the
recommendations
that
the
Auditors
made.
D
Yes,
yes
and
we've:
we've
responded
to
it.
I
I
can
comment
very
briefly
that
they
found
essentially
no
exceptions
of
significance.
D
That
was
the
bottom
line.
I
do
owe
you
in
my
notes.
I,
owe
you
some
clarification
on
the
issue
of
contributions
and
the
insurance
and
between
the
k
plan
and
the
C
plan.
The
discussion
we
had
so
where,
where
it
fit,
and
and
what
caused
it
and
I
will
follow
up
on
the
three
investment
managers
who
are
working
to
conclude
the
proxy
voting
as
as
that
process
concludes
all
I'll.
Let
you
know.
A
A
A
These
benefits
are
just
I
mean
small
token
for
the
family
and
I'm
I'm
glad
the
general
assembly
saw
fit
to
increase
those
benefits
from
25
percent
to
75
percent
and
so
glad
we
did
that
and
I'm
I'm,
really
sorry
that
somebody
has
to
collect
those.
But
we
just
want
to
keep
those
folks
in
in
mind
because
it
is
it
is.
It
is
tough
out
there.
A
A
Bo
good
to
see
you
again,
it's
been
you've
got
a
little
recess
from
us
good
to
see
you
back
the
the
floor
is
yours.
Please
proceed
yes,.
K
These
are
unauged
and
preliminary
they're
they're
pretty
new.
So,
but
we
want
to
provide
you
with
the
most
recent
information
that
we
have
most
recent
data.
So
we'll
start
at
the
bottom
line
on
the
far
left
hand
corner
net.
So
for
the
quarter
for
the
three
months
of
this
calendar
year,
you
see
4.54
return
fiscal
year
to
date,
6.45
percent
return,
one-year
return
is
negative.
K
4.56
percent
three-year
return
is
12.02
percent
five
year
is
6.77
percent
and
then
I'm
going
to
have
to
jump
up
to
the
line,
just
above
it
to
complete
the
10
and
20
year
returns,
because
we
don't
have
the
net
of
fees
information
yet
so
these
are
gross
returns.
You
see
for
the
10
years,
8.2
percent,
the
20
or
7.7
percent.
Of
course,
we
are
a
long-term
investor
and
projections
for
the
30-year
return
looks
like
it's
going
to
be
probably
just
a
little
bit
above
7.5
percent.
Our
assumed
rate
of
return
is
7.1
percent.
K
Moving
to
the
next
slide
same
data
for
the
health,
insurance
trust
and
again
these
are
preliminary.
So
we'll
start
where
we
started
on
the
previous
slide
at
the
bottom.
Left-Hand
Corner
for
the
quarter
returns
for
4.6
percent
for
the
health,
insurance
trust
7.07
percent
fiscal
year.
K
To
date,
one
year
was
negative:
4.15
three
year,
12.38
percent
five
years,
six
point,
seven
four
percent
and
then
jumping
up
to
the
line
just
above
10
years,
7.17
percent-
and
we
don't
have
data
beyond
that
at
this
point
in
time,
but
that
would
be
available
next
month,
if
you'd
like
to
have
that
extrapolated
on
further
and
then
with
the
as
with
the
retirement
annuity,
trust
the
health
insurance
trust
has
an
assumed
rate
of
return
of
7.1
percent
cash
flow.
Okay.
K
This
is
the
cash
flow
for
the
retirement,
annuity,
trust
and
then,
as
always,
whenever
I
discuss
this
slide,
you
know
where
I
was
talking
about
we're
going
to
cover
it.
In
third,
the
top
third
cash
inflow,
the
middle
third
cash
outflow
and
the
bottom
third
of
the
slide
is
kind
of
the
net
results
of
those
cash
inflows
and
outflows.
So
you
can
see
the
far
right
hand
columns
the
the
one
furthest
to
the
right
is
fiscal
year
to
date,
2022
so
July
1st
of
2022
through-
and
this
goes
through,
February
28th.
K
K
You
will
see
that
member
contributions
increased
slightly
for
the
two
periods
from
2022
to
2023,
from
214
million
to
200,
22
million
employer
contributions
down
slightly
from
821
million
to
790
million
investment
income,
and
this
is
stock
dividends
and
fixed
income
interest
on
fixed
income
bonds,
236
million
dollars
in
2022
up
slightly
to
244
million
dollars
in
2023.
So
total
cash
inflows
just
very
slightly
legalized,
from
1
billion
272
in
2022
to
1
billion
257
in
2023..
K
Administrative
expense
is
up
slightly
from
9.7
million
dollars
to
11
million
dollars.
A
lot
of
that,
of
course,
was
the
eight
percent
across
the
board.
K
Compensation
increase
for
all
state
employees
and
you'll
see
the
total
outflows
increase
slightly
for
the
two
periods
from
1.567
billion
to
1.627
billion,
so
cash
flow
for
2022
for
that
period
of
time
was
a
negative
294
million
dollars
increase
to
a
negative
360
million
dollars
for
the
the
current
for
the
same
period
for
2020
for
this
fiscal
year
and
you'll
see-
and
this
again
this
is
a
very
important
line.
K
The
next
line
here,
the
investment
gains,
are
losses
because
the
what
we've
seen
above
the
top
of
this
chart
or
the
top
of
the
slide
just
really
tells
part
of
the
story,
because
during
that
period
of
time
we
also
saw
investment
gains,
which
you
heard
Beau
Craycraft
discussed
earlier,
which
were
both
realized
and
unrealized.
So
you
see
comparing
the
two
periods.
K
It
was
a
negative
568
million
dollars
for
the
fiscal
year
period
2022
and
it's
up
to
a
positive
855
million
dollars
for
the
same
period
for
2023
assets,
Rose
from
January
1st
of
this
calendar
year
from
22.9
billion
to
22.386
billion.
So
we
saw
some
improvement
there
down
slightly
from
the
prior
period
in
2022.,
with
that
I
go
to
the
next
slide.
This
is
the
same
slide
same
format
before
the
health,
insurance
Trust
and
again,
just
moving
over
these
numbers
very
quickly.
K
Remember:
contributions
increase
for
the
two
time
periods
from
127
million
to
132
million
employer
contributions,
increase
from
102
million
to
142
million
recovery
income.
These
are
prescription
drug
rebates,
Federal
subsidies
that
we
we
work
hard
to
make
sure
that
we
obtain
increase
from
95.8
million
to
98.
I'm
sorry,
95.8
million
to
98.5
million
investment
income,
also
improved
from
7.9
billion
to
16.9
million,
so
Improvement
there
and
total
cash
inflows
increased
for
the
two
time
periods
from
332
million
in
2022
to
391
million
in
2023.
cash
outflows.
K
This
is
largely
the
benefit
payments
increased
slightly
from
206.9
million
to
216.5
million,
so
total
net
reflects
also
the
total
cash
flows.
Administrative
expense
is
something
that
we
do
at
the
end
of
the
fiscal
year,
because
it's
part
of
our
overall
business
expense
salaries.
At
the
end
of
the
year
we
break
out
what
salaries,
for
example,
are
going
towards
the
health
insurance
department
versus
the
rest
of
the
departments
at
TRS.
K
So
cash
flow
for
the
period
of
time
is
125.8
million
for
the
time
period
in
2022
and
it
Rose
to
174.7
million
for
the
same
period
for
2023.
again
in
looking
at
the
very
important
line,
the
investment
gains
or
losses
realized
or
unrealized.
We
see
that
we
are
negative
21.9
million
in
2022
positive
89.7
million
in
2023,
and
we
have
seen
the
health
insurance
trust
continue
to
grow
well
from
just
beginning
of
this
calendar
year
from
2.269
billion
to
2.533
billion,
so
very
good
growth
in
the
health
insurance
trust.
K
As
a
result
of
that
share
responsibility.
Legislation
from
2010
our
active
teachers,
retired
teachers,
school
districts,
are
all
paying
more
into
the
health
insurance
trust
to
make
that
a
pre-funded
benefit
next
slide.
We're
also
asked
to
provide
a
legislative
update
and
there's
really
only
one
bill.
K
I
have
to
talk
about
that
today
and
you've
heard
about
it,
the
previous
speakers
and
that's
House,
Bill
236
houseboat
236
again,
it
codifies
in
Greater
detail
what
it
means,
for
example,
to
be
a
fiduciary
with
Investments,
and
that
means
that
you're
investing
only
solely
in
for
pecuni
air
interest
and
not
not
the
area
interest
like
environmental,
social
governance,
ESG
or
ideological
reasons,
and
that
is
something
that
we
do
at
TRS.
So
it's
not
really
a
policy
change
for
us.
We
have
a
trustee
annual
trustee
workshop
and
all
of
our
trustees
have.
K
We
have
a
presentation
on
what
it
means
to
be
a
fiduciary
and
with
Investments,
and
that
is
maximum
return,
susceptible
levels
of
risk.
So
there
are
some
additional
reporting
requirements
too,
with
house
built,
236
we've
already
been
discussing,
I
had
many
meetings
on
House
Bill
236
already
and
we'll
be
ready
to
implement
those
House.
Bill
236
also
provides
some
details
and
requirements
for
proxy
advisors
and
and
people
who
vote
provide
proxy
voting
Services,
as
you've
heard
me
testify
here
before
we
are
currently
using
institutional
shareholder
services
or
ISS
our
board.
K
K
That's
a
again.
We
are
required
by
161
430.
We
have
been.
We
are
now
more
detail
provided
by
House
Bill
236
again,
Investments
are
made
only
to
achieve
maximum
returns
within
separate
levels
of
risk.
Likewise,
our
shares
of
stock
that
we
hold
those
proxies
are
voted
in
the
best
interest
of
the
membership
and
just
to
for
only
to
further
pecuniary
interests
and
not
any
other
interest.
That's
how
we
invest
at
TRS
and
then.
K
Finally,
a
report
on
House
Bill
76
from
the
2022
session,
and
that
bill
requires
an
experienced
study
for
economic
assumptions
to
be
done
every
two
years,
instead
of
five
as
we
normally
do
it.
So
we've
been
working
with
the
actuary.
You
know
this
was
reported
to
the
board
meeting
the
actuary
about
making
sure
that
we
are
have
those
actual
assumptions
reviewed
and
in
time
for
the
2023
fiscal
year,
Actuarial
evaluation,
which
will
be
submitted
and
ready
and
submitted
by
November
15th,
and
it's
we're
just
waiting
on
some
key.
K
A
capital
Market
assumption
numbers
to
come
in
from
certain
entities
like
aeon
or
our
actuary
will
review
those
because
they
not
only
look
what's
happened
in
the
past,
but
they're
also
trying
to
project
what
the
capital
markets
will
be
in
the
future.
So
I
think
that's
all
I
had
if
there's
any
questions
be
more
than
happy
to
take
those
okay.
A
C
Just
two
very
quick
ones:
I
think
they're,
quick,
so
we've
reference
House,
Bill
236.
In
summary
of
what
what
your
statements
were.
Would
you
say
the
TRS
is
in
full
compliance
with
House,
Bill,
236
or
just
wrapping
up
some
loose
ends
to
make
sure
you're
in
full
compliance.
K
In
full
compliance
there's
some
additional
requirements
that
didn't
exist
before,
like
reporting
proxy
votes
quarterly,
that's
something
we'll
start
doing,
but
we
have
been
in
full
compliance
because
again,
it's
I've
been
there
for
almost
24
years
and
with
Investments
it's
always
been
about.
What's
the
best
investment,
the
best
value
for
the
maximum
returns
and
again,
but
critically,
important
too
acceptable
levels
of
risk
right.
C
K
C
That
time
frame
great
last
question
is
just
kind
of
a
general
question.
Are
you
still
live
streaming?
Trs
meetings
board
meetings.
Committee
meetings
are.
K
C
K
E
Thank
you
just
a
question
on
236
the
RFP.
You
said
you
have
put
out
on
the
processing
side
of
it.
Did
that
have
a
statement
in
there
or
did
it
date
with
our
requirements
are
under
236
so
that
they
know
what
they're
bidding
on
specifically
yeah.
K
Yes,
thank
you
very
much
for
bringing
that
up.
I
neglected
to
mention
that.
But
the
RFP
itself
contains
a
lot
of
the
wording
from
House,
Bill
236
and
a
copy
of
House
Bill,
236
and
full
was
attached
to
the
RFP
and
it
was
made
a
condition
of
submitting
a
bid.
Is
you
have
to
agree
to
all
the
terms
of
House
Bill
236.
H
H
Thank
you,
and
also
on
that
page,
a
similar
question
to
question
on
kppa
on
employer
contributions.
The
member
contributions
are
up
5.9
million,
but
the
employer
contributions
are
up.
40.9
million.
Is
there
a
specific
reason
why
those
contributions
were
so
much
higher
from
one
fiscal
year
to
another.
H
Would
but
I
can
find
out
for
you?
Okay,
thank
you,
Mr
chairman,
if
I
may,
I
I'll
make
one
additional
question.
Please
proceed.
Okay
in
one
comment
on
behalf
of
Representative
de
Plessy,
we're
still
watching
the
the
cash
flow
balance,
but
the
question
I
had
was
when
we
did
the
budget
in
fiscal
year,
22
I
believe
the
total
appropriation
TRS
was
around
1.2
billion
about
1.1
of
that
from
the
state.
H
A
K
So
that
will
be,
you
know,
some
of
that
will
the
member
makes
a
you
know,
percentage
contribution
on
their
salary
too,
so
as
their
salaries
go
up
as
with
the
state,
the
contributions
go
up,
but
a
lot
of
that's
going
to
have
to
be
made
up
by
the
adec,
which
you
know
at
some
point
in
time.
We
will
see
when
we
get
to
a
fully
funded
100
fund.
K
Annuity
trust
and
there's
a
point
in
time.
Where
that
will
happen,
then
the
contributions
made
by
the
state
towards
TRS
will
be
slashed
dramatically.
Sure.
H
K
Gonna
start
seating,
some
acceleration
in
the
funded
level
in
a
few
short
years
and
again,
it's
sort
of
a
hint
You,
Know,
Your,
Home
Mortgage
in
the
early
years,
you're,
paying
mostly
interest
and
little
principal
we're
kind
of
at
that
point
we're
earlier
in
the
mortgage,
but
we're
only
a
few
years
out
we're
going
to
see
a
more
dramatic
acceleration
of
funding
status.
Okay,
thank.
H
A
Thank
you
and
representative
Mills
I'm,
a
senator
Mills.
You
still
have
another
one:
okay
Bo.
We
always
have
a
question
about
cash
flow
and
and
I.
Think
representative
Tipton
covered
that
pretty
good.
So
thank
you
on
on
that
and
that's
always
a
concern.
A
I
know
that,
but
one
of
the
questions
I
had
a
as
we
talked
in
the
last
interim
about
sick
day
reporting
from
the
schools
to
tr
or
from
the
down
at
the
local
level
to
TRS
and-
and
you
told
me
at
the
time
there
was
no
reports
from
them
to
you
and
that
you
really
didn't
know
that
the
actual
liability
each
year
that
that's
out
there,
you
didn't
know
the
liability,
tell
the
person
actually
retired.
K
Well,
they
they
report.
Yes,
the
school
districts
report
the
sick
days
at
the
time
of
retirement.
Our
actuary
does
project
a
liability
for
sick
leave
based
on
what
we
know
and
that
we
know
we
still
had
an
active
teacher
sick
leave,
liability
out
there
that
we're
paying
it
off
slowly
to
an
amortized
basis,
just
as
we
are
with
all
the
liabilities
or
all
the
benefits
in
the
pension
side.
A
You
know
I'd
like
to
I,
think
it'd
be
good
to
know
that
liability,
the
true
liability
every
year
instead
of
anticip,
you
know
the
actuaries
making
an
estimate
of
what
it
is
instead
of
passing
legislation
to
require
that
being
done,
can
can
TRS
ask
for
that
information
on
a
yearly
basis
for
the
actuaries,
where
we
have
actual
figures
instead
of
assumptions.
K
I
I
would
assume
we
could
ask
for
it
there.
There
wouldn't
necessarily
be
a
requirement
for
the
district's
provided
you
know
we
might
have
some
to
do
it
and
some
don't
I,
don't
know,
but
I
think
we
could
ask
for
it
probably
need
to
give
that
a
little
thought
about
how
we
would
do
that.
What
we'd
be
collecting
and
make
sure
I
understand
exactly
what
it
is.
K
A
Saw
the
legislation
last
year
that
I
filed
it
just
just
said
that
they
would
report
report
to
you
each
year,
and
so
that
was
that's
I
just
think
accountability
is
is
good,
especially
when
we're
we're
talking
about
anticipating
in
2032
that
our
legislative,
our
the
ask
the
adac
ask,
will
be
two
billion
dollars
and
that's,
but
you
know,
I
I
understand,
there's
a
lot
of
moving
parts
to
that,
but
I'll
we
just
simply
ran
out
of
time
before
we
got
that
passed
this
time.
Yes,.
K
Sir,
and
if
I
may,
just
really
quickly
about
cash
flow
is
still
very
manageable.
We're
about
2.6
percent
and
actuarials
will
say
that's
acceptable.
Before
we
got
the
additional
funding
that
we
got
in
2017,
we
were
in
a
bad
place.
Cash
negative
cash
flow
was
growing
to
an
unacceptable
and
unmanageable
level,
with
additional
funding
which
we're
very
thankful
for
that's
just
turned
all
that
around
completely,
and
it's
also
helping
us
with
our
investments.
You
know
we
can
now
buy
when
we
want
to
buy
and
not
have
to
sell.