A group of Kentucky state workers filed a lawsuit against state retirement system officials and three asset management firms on Wednesday, saying they breached fiduciary duties by embracing high-risk, high-fee investments that yielded lackluster returns, Reuters reported. Kentucky has one of the nation's most underfunded public pension funds, with nearly $16 billion in assets and a shortfall the suit estimates to be at least $27 billion. The retirement and health benefits of 360,000 state workers, from police officers to janitors, depend on Kentucky's pension fund. The lawsuit in Franklin Circuit Court seeks damages from KKR Prisma, Blackstone Group and PAAMCO for losses on investments they recommended. It also names several former or current Kentucky Retirement Systems officials as defendants.
