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Regulation

Grim Fate Looms Over Kentucky Pension Reform

Stivers pessimistic as 10 days remain in regular session.

By Chris Butera

With 10 days left in the regular legislative session and a bill surrounded by controversy, a Kentucky pension reform may again fall by the wayside.

“I don’t see a lot of hope for it. That’s just the reality,” Senate President Robert Stivers told the Courier-Journal. “I am looking at legislation to introduce later on. I do not want to come into a special session, but it may be necessary.” Stivers could not be reached for comment.

As teachers and school faculty continued their protests against Senate Bill 1 to the point where the bill was sent back to the committee last week amid alleged illegalities Attorney General Andy Beshear found within its context, Gov. Matt Bevin fanned the flames Wednesday in a radio interview with WVLC.

“If they get what they wish for, they will not have a pension system for the younger people who are still working. And that to me is remarkably selfish and shortsighted. But we’re going to try to save people in spite of themselves,” he told the station.

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The issues that members of the troubled pension system face are many, primarily a clause which aims to cut their cost of living adjustments from 1.5% to 1%. Beshear’s office had sent several letters and posted videos to his social media accounts notifying 21 legal issues with the original bill as well as its substitute, the current version of SB 1.

A pension reform had been touted by Bevin for most of last year, in which he called for a special legislative session in the fall. However, that fell through after a scandal within the legislature.

Senate Majority Leader Damon Thayer was optimistic about the bill passing, but lamented to the Courier-Journal that all of the vilification surrounding SB 1 was creating a toxic environment for the legislature. He warned of “calamitous” results should the bill or something like it not pass in time.

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Home > News > Manager Selection > Australia’s CBUS to Bulk Up Infrastructure Division
Manager Selection

Australia’s CBUS to Bulk Up Infrastructure Division

Move follows growing in-house management trend.

By Chris Butera

Keen to add more in-house management to its team, Australia’s $34 billion Construction & Building Unions Superannuation (CBUS) will  add staff to its infrastructure investment division.

The pension fund will add three people to the team, creating an infrastructure department that is eight members strong, with the goal of having 30% of the infrastructure portfolio directly invested.

“We feel that it is an area of material benefit having internal capabilities,” CBUS’ Head of Infrastructure Diana Callebaut said in an interview with Bloomberg, who broke the news. “Once we move into the asset management phase, we will look at that and see if we need a few more individuals.”

Both local and overseas direct infrastructure investment opportunities will be scoured by the in-house team, which will also manage the relationship with external fund managers.

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Taking a page out of the Canadian model, CBUS’ decision is in line with a growing trend of cutting external managers in favor of hiring internal staff to produce greater returns and reduce costs as well as fees. Bloomberg reports that the A$130 billion AustralianSuper ($99.4 billion), the country’s largest fund, announced plans last year to eventually manage half of its assets internally.

 

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