KY Firefighters: Bevin’s Pension Record “Deeply Troubling”
Posted September 10, 2015
State Journal Reveals That Bevin’s Pension Company Charged ‘Above-Average’ Fees While Jeopardizing Retirement Security For Firefighters
FRANKFORT, KY — Today, KY Professional Fire Fighters President Joe Baer issued the following statement in response to a report in the State Journal revealing Matt Bevin’s “less than stellar” pension record.
The story details how Bevin’s investment company charged “above-average” fees while the retirement funds they managed underperformed, jeopardizing retirement security for thousands. Bevin’s clients included the Fireman’s Retirement System of St. Louis, which was forced to overhaul their benefits because their investments failed to cover costs as they were promised.
“The facts about Matt Bevin’s pension record are deeply troubling. While Bevin says we should trust him with our pensions, his company lost money for seniors and jeopardized firefighters’ retirements — all while Bevin enriched himself through ‘above-average’ taxpayer funded fees,” said Kentucky Professional Fire Fighters President Joe Baer. “Kentucky firefighters put their lives on the line to protect our community and we deserve a governor we can trust — but this report is just more evidence proving why Republicans called Bevin an ‘East Coast Con Man.’ For firefighters, Bevin’s record of pension mismanagement makes the choice in this election even more clear: we back Attorney General Jack Conway.”
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]