Kentucky Retirement Systems, Frankfort, conducted business as usual Thursday, with Chairman Thomas K. Elliott presiding over the regularly scheduled board meeting, despite earlier orders from Kentucky Gov. Matt Bevin that he be removed.

On Wednesday, Mr. Bevin issued an executive order to remove Mr. Elliott, a senior vice president at Old National Bank, Louisville, from the board.

On Thursday morning, prior to the board meeting, Mr. Bevin issued another order, appointing William F. Smith, a dermatologist in Madisonville, Kentucky, to the board, replacing Mr. Elliott.

Wednesday’s order did not disclose the reason for Mr. Elliott’s removal but pointed to a state law that the governor can remove certain gubernatorial appointees for “any cause the governor deems sufficient.”

Mr. Elliott was first appointed to the board in 2011 and reappointed last year by then-Gov. Steve Beshear for a term that expired March 31, 2019. Mr. Bevin has yet to name successors for two KRS trustees whose terms expired March 31.

Disagreeing with governor’s authority to remove Mr. Elliott, the KRS board decided to “move forward with business as usual,” on Thursday, with Mr. Elliott continuing as chairman, and to seek Kentucky Attorney General Andy Beshear’s opinion on the situation, said William A. Thielen, executive director of the $15 billion retirement system. Steve Beshear is Andy Beshear’s father.

In March, the attorney general issued an opinion that the governor cannot “remove a duly appointed member of the Kentucky Horse Park Commission or other boards and authorities with set or defined terms” before the member’s term has ended.

The KRS board’s decision to retain Mr. Elliott as chairman on Thursday was based on that opinion, Mr. Thielen said.

Mr. Smith attended the board meeting but was not sworn in.

A spokeswoman for the governor and spokesman for the attorney general could not be reached for additional information by press time.

Meaghan Kilroy writes for Pensions & Investments, a sister publication of Business Insurance.