A lawsuit regarding Kentucky state pensions is currently in limbo following a judge declining to OK the terms of a settlement.
Last week, Franklin Circuit Judge Thomas Wingate did not approve the terms over the long-running suit against hedge funds for their role in controversial investments by the Kentucky Retirement Systems.
Tom Loftus is a contributing reporter to the Kentucky Lantern and has been following this case. In an interview with WEKU, he said Wingate's order said he could not clear the terms.
“The proposed order he was asked to sign included a number of findings that he was not prepared to make, he didn't think it was not his job to make.”
Loftus said from the case’s outset, the hedge funds have denied allegations that the investments resulted in high fees, low transparency, and massive losses for Kentucky public pension plans.
He said Kentuckians shouldn't necessarily be worried about this particular case but should keep an eye on their pensions.
“You should be concerned if the money is being squandered, or mismanaged, or if there is any fraud involved at all. If that is going to be exposed in the lawsuit, it really hasn't happened yet, there are still some allegations going.”
Loftus said Wingate has told the parties involved that they can proceed with negotiations and efforts to settle this lawsuit. He said a second pending lawsuit involving state pensions could tie this up even more.
Tom Loftus' reporting on this story with the Kentucky Lantern can be found here.
