State-Journal.com - Pension director named

Mike Burnside, the new executive director of the Kentucky Retirement Systems, plans to hit the ground running when he starts work on Jan. 3.

"I think there's going to be a steep learning curve," he told The State Journal.

At a special meeting on Thursday, the KRS board of trustees announced Burnside was the top choice for the job. Burnside will replace Bill Hanes, who is retiring Dec. 28 after 21 years of service.

"I'm very honored the board has selected me for this position," Burnside said. "Bill Hanes leaves some very big shoes to fill."

His salary will be $157,000. The retirement systems have $17 billion in assets and 302,000 current and retired members.

One major issue Burnside will need to address is the $18.8 billion unfunded liability in pension and health-care obligations to employees and retirees. Gov. Ernie Fletcher appointed a blue ribbon commission to study the issue and the board recently issued a report.

Burnside was a member of the commission and said the report will be a hot topic in the upcoming legislative session. Lawmakers will also be crafting a budget, and KRS will request an operating budget of $29.7 million for 2008-2009 and $31.3 million for 2009-2010.

The actuarially required employer contribution rates total $559 million for KRS, $29 million for the State Police Retirement System and $469 million for the County Employees Retirement System.

"We're going to work with the executive and the legislature to make sure we have the funding we need for the retirement systems," Burnside said. "I think working on the blue ribbon commission will give me a good background."

Burnside has served in state government in various capacities under Govs. Paul Patton and Ernie Fletcher. He served as secretary of the Finance and Administration Cabinet between August and December.

He also served in the Air Force for 20 years, retiring as a colonel. Burnside also holds a master's degree in management from Troy State University and a bachelor's degree in physical science from the Air Force Academy.

Walter Pagan, chairman of the KRS search committee, said Burnside was an excellent candidate.

"Mike's experience managing large, complex organizations, coupled with his extensive experience interacting with the legislative and executive branches will be of tremendous value," Pagan said.

Burnside was selected after conducting an extensive nationwide search that drew more than 70 rsums from 17 states. The search committee interviewed four candidates last week before selecting Burnside for the job.

Randy Overstreet, chairman of the KRS board of trustees, said Burnside has the right experience to lead KRS.

"His knowledge of the legislative process and established relationships with the legislature will be invaluable," Overstreet said.

However, Burnside is an unknown quantity with local lawmakers. Rep. Derrick Graham, D-Frankfort; Rep. Carl Rollins, D-Midway; and Sen. Julian Carroll, D-Frankfort, all said they were unable to comment on the decision to hire him. None of them could ever recall meeting or talking to Burnside.