Gov. Beshear Signs Off On Lexington Pension Reform

Gov. Beshear Signs Off On Lexington Pension Reform

The pension reform for city police and fire will shore up a nearly 300 million dollar city shortfall in the funding.
Governor Beshear officially signed into law Lexington's Fire and Police pension reform Friday.

    According to the Governor, this legislation will immediately cut the unfunded liability by approximately 45 percent.

     Lexington was facing a nearly 300 million dollar shortfall in that unfunded liability.

     According to the pension reform, the city will pay off the liability over the next 30 years, along with increasing payments to the fire and police retirement funds.

     As for fire and police, there will be an increase in contributions from active and future employees, along with a remodeled new-hire plan.

     Mayor gray says this compromise will cut the unfunded liability from 296 million dollars to 161 million.

     The city of Lexington did take out a 34 million bond issue to cover the pension payments for the current year.

     Mayor Gray said on Friday that because of this reform, that will be the last bond issue for the pension system.
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