By Brenna Angel
http://stream.publicbroadcasting.net/production/mp3/wuky/local-wuky-934284.mp3
LEXINGTON, Ky. – City officials have known for years that the Lexington police and firefighter retirement plan is struggling, but they'll get a complete picture of how the dire situation is in a few weeks. Members of the Police and Fire Pension Board heard Wednesday from Matt Shirilla of Callan Associates, an investment consulting firm conducting an asset-liability study.
"What we're doing in our study is we're acknowledging change and uncertainty in the capital markets. It is certainly different than the last time you undertook this exercise. A lot has changed; we want to incorporate that into our long-term planning. And we want to establish a reasonable rate of return expectation."
The pension fund currently has about $445 million in total assets, but still faces a huge shortfall. Outgoing Mayor Jim Newberry told the consulting firm that contribution policies could change with the new administration.
"I would just make the observation that to the degree you're counting on subsequent infusions of capital in the coming years as we've had the last couple years, I'm not sure that's a fair assumption."
Lexington is the only city or county government in Kentucky that operates its own retirement system for police and firefighters. The next police and fire pension board meeting is scheduled for December 8.