Lexington tackling its public pension woes

public-pensions

Though it doesn't possess the unenviable distinction of being one of the 61 worst-funded public pension towns in the nation, Lexington has finally decided to step up and face its $296 million unfunded liability in its police and fire pension fund. That's more than Louisville can claim, which is the 17th worst-funded public pension town in the nation.

If approved by the 2013 Kentucky General Assembly, the Lexington-Fayette Urban County Government would pledge $9 million extra per year to pay off its unfunded public pension obligations for a total of $20 million per year. In return, police officers and fire fighters would accept some concessions including smaller cost-of-living adjustments, reduced disability retirement benefits and payouts for new hires, and an older retirement age.

Though the solution isn’t what the private sector offers - like a 401(k) – and though state legislators are discussing that very option, Lexington is showing the strength to make the difficult decisions and sacrifices that must take place in order for budgets to be balanced and the economy to stay strong in the commonwealth.