City employers brought action alleging improper investments by the Board of Trustees of Kentucky Retirement Systems in its management of the County Employees Retirement System (CERS).
The Circuit Court entered declaratory judgment in favor of Board. City employers appealed. The Court of Appeals affirmed. Discretionary review was granted.
The Supreme Court as a matter of apparent first impression, held that standard applicable to Board in making investments for the CERS was prudent investor standard.
Standard applicable to Board of Trustees of Kentucky Retirement Systems in making investments for the County Employees Retirement System (CERS) was prudent investor standard, and Board was not restricted by statute from making investments in unregulated hedge funds and private equity funds in managing CERS assets.