Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Fayette | Henderson | Lakes | McCracken | Warren | Webster

Gov. Beshear Signs Bill to Implement Pension Reform for Lexington Police and Firefighters

lex police fire 300LEXINGTON, Ky. (3/22/13) – Governor Steve Beshear joined Lexington Mayor Jim Gray and the presidents of the city’s fire and police unions today to sign House Bill 430, which implements the city’s pension reform plan for police and fire department employees.
 
Lexington’s police and fire pension, which has a $296 million unfunded liability, will be set on a sustainable path under a consensus plan agreed upon by the mayor, representatives from the police and fire unions and representatives from the city’s pension board.
 
“The leaders of Lexington took some common-sense steps to shrink the city’s unfunded pension liability and create a reasonable path forward to ensure these public servants will get the benefits they earned,” said Gov. Beshear.
 
The plan, recommended by the city’s pension consultant, will immediately cut the city’s unfunded liability by approximately 45 percent. The plan includes lower annual cost-of-living adjustments, increased contributions from active and future employees and a remodeled new-hire plan. The city agreed to increase its payments to the Policemen’s and Firefighters’ Retirement Fund by $9 million a year and bind itself to paying down the unfunded liability over 30 years.
 
“Great American cities like Lexington tackle big problems and wrestle them to the ground,” Mayor Gray said. “Our police and fire pension system was by far our city’s biggest financial challenge. We were determined to stop kicking the can down the road, to find a solution now. With this agreement, we make Lexington a stronger city.”
 
Under this agreement, Lexington would not need to issue the $34 million bond that narrowly passed the Urban County Council last year. That bond was to cover the city’s minimum required payment of $29 million to the pension fund this year. Members of the police and fire unions voted to approve the plan.
 
“The men and women of the police and fire pension system, active and retired, have shown both their commitment and sacrifice by voting for and accepting the concessions made in order to sustain this pension, not only for themselves but also for our future retirees,” said Lexington Fraternal Order of Police President Mike Sweeney. “They need to be commended as do all of the drafters of this plan from both sides.”
 
“This was not easy, but in the end we have a plan that finally puts our pension fund on sound footing, ensuring that it will continue to support the retirements of Lexington’s police officers and firefighters for decades to come,” said Capt. Chris Bartley, President of Local 526, International Association of Fire Fighters.
 
Under the new plan, the city’s annual payments would be $20 million per year, up from the $11 million per year it had been contributing supplemented by pension-obligation bonds. The new payment schedule and methodology shifts the city’s payment plan from interest-only to paying down the principal. Paying down the unfunded liability over 30 years without the benefit changes would have cost the city $34 million a year.
 
“With this legislation the pensions of the brave men and women in our police and fire departments will become sound,” said Rep. Ruth Ann Palumbo, of Lexington. “These public servants put their lives on the line every day to protect us and deserve a secure retirement plan.”
 
SurfKY News
Information provided by the office of Gov. Steve Beshear
Photo provided by SurfKY Graphics

© Copyright 2014 SurfKY News Group, Inc. All rights reserved. This material may not be published, broadcast, or rewritten without permission. SurfKY News encourages you to share this story by using one of the social media links below.

Most Read This Week (Site-Wide)

April 16, 2014 18814

UPDATE- Sheriff's Office Following Leads…

in Top Stories by Taylor Riley, SurfKY News Reporter
April 14, 2014 6288

U.S. Bank Hanson on Lockdown Due to Bomb…

in Top Stories by Rita Dukes Smith, SurfKY News Director
April 14, 2014 5236

Pedestrian Killed During Two Vehicle…

in Top Stories by Chris E. King
April 17, 2014 3023

KSP Nabs St. Charles Man Wanted by U.S.…

in Top Stories by Trooper Stu Recke
April 15, 2014 3006

Police Searching for Sureway's 'Baby…

in Top Stories by Taylor Riley, SurfKY News Reporter

Most Read Stories from Hopkins County

April 14, 2014 5236

Pedestrian Killed During Two Vehicle…

in Top Stories by Chris E. King
April 17, 2014 3023

KSP Nabs St. Charles Man Wanted by U.S.…

in Top Stories by Trooper Stu Recke
April 15, 2014 3006

Police Searching for Sureway's 'Baby…

in Top Stories by Taylor Riley, SurfKY News Reporter
April 15, 2014 2665

Multi-Agency Investigation Leads to Drug…

in Top Stories by Lori Blakeley
April 15, 2014 1032

State Approves $500K for Hopkins Archery…

in Top Stories by Rebecca Hanchett

Most Read Stories from Owensboro

April 14, 2014 2019

Grow Garden Grow - Spring Has Sprung

in News by Barbara Cecil Russ
April 15, 2014 1549

Owensboro Police Investigate Auto Accident

in News by Michael Hathaway
April 15, 2014 1225

Owensboro Parks Offers Tennis Lessons

in News by Britni Bunn
April 15, 2014 836

Happenings and Meetings Owensboro

in News by Dennis Beard, SurfKY News
April 14, 2014 655

Owensboro Health Hosts Tours for…

in Top Stories by Dennis Beard, SurfKY News

Most Read Stories from Muhlenberg County

April 16, 2014 2841

Sheriff's Deputies Nab Central City…

in Top Stories by Sheriff Curtis McGehee
April 14, 2014 2482

MCC Staff Shares Good News with…

in Top Stories by Paul McRee, SurfKY News Reporter
April 15, 2014 1857

'Walk Right Back' An Everly Brother's…

in Top Stories by Paul McRee, SurfKY News Reporter
April 15, 2014 1693

Local MCHS Students Train at Job Corps

in Top Stories by Karen Robinson
April 15, 2014 1389

Thumbpickers Unite at Mose Rager Day

in Top Stories by Paul McRee, SurfKY News Reporter

SurfKY News Group, Inc. Central Office & Printing Division
1125 Nebo Rd.  •  Madisonville, KY 42431  •  270.452.2249 (fax)
Main Number: 270.452.2727 (phone)  •  Printing Division Direct Line: 270.821.8600 (phone)

SurfKY Owensboro News Bureau
920 Frederica St. / Suite 210  •  Owensboro, KY 42301  •  270.683-8060 (phone)


Contact a member of our staff: www.surfky.com/contact
Copyright © 2014 SurfKY News Group, Inc.  •  Terms of Use  •  Site Map

social 06social 21social 22social 04social 03