By Brenna Angel
http://stream.publicbroadcasting.net/production/mp3/wuky/local-wuky-951331.mp3
LEXINGTON, Ky. – With a recent report showing Lexington's Police and Firefighter Pension Fund with an unfunded liability of over $200 million, the fund's supervising board will soon consider possible solutions.
The board voted Wednesday to establish a legislative subcommittee to generate ideas on ways to improve the retirement system. Retired police officer and board member Tommy Puckett will chair the four-member group.
"We're going to invite the labor organizations, the FOP, the FOF, the union. Obviously we're going to have to have legal there because I don't know what we can and can't do legally. And I want input from these people, especially the actives. This is something they have to live with."
Puckett says there are several issues that will likely be addressed, including the calculation of disability benefits. Current policy states that a disabled employee is eligible for an annuity of 60-75 percent of his or her salary. That sliding scale applies to all injured workers, even if they are considered only 1 percent disabled.
"Is everybody going to happy? No. When you start doing this stuff there's no way you can make everybody happy. But we've got to try to look at the system as whole," Puckett says.
The retirement fund currently has $480 million in assets. At the board's January meeting, an actuary said more positive returns and consistent contributions from Urban County Government are needed in order to keep the promises made to Lexington's police officers and firefighters.
Changes to the Lexington Police and Fire Retirement Fund must be approved by the Kentucky General Assembly.