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Local Control of Local Pension Funds - The Time is Now.

How can Lexington balance its budget and fund the programs that must be funded when Frankfort won't do its part?

Lexington's city/county employees deserve the pensions they were promised and the pensions both they and the city have paid for. City employees and the taxpayers have dutifully funded all obligations due for decades, yet Frankfort has spent the money on exotic investments, murky fees and opaque investment manager relationships.

The Commonwealth of Kentucky has proven time and again that they can't manage public pension money transparently, profitably and effectively. Now is the time that Lexington must push to separate CERS ( County Employee Retirement Systems) from the KERS.

The Kentucky Employee Retirement Systems ("KERS") stood at 125% funding only 15 years ago, and now stands at barely 15%. The CERS system is funded at at least 59%-60%.

Lexington must push for separation of CERS from KERS and join other counties in controlling the retirement funds for its city/county workers, and safeguarding taxpayer funding of these retirements.

Per the Kentucky League of Cities ("KLC"): "Removing CERS from the KRS group will also ensure the future stability of the County Employees Retirement Systems, while ensuring local control of local retirement funds." (1)

Also Per KLC: "Separating CERS from KRS would create a new nine member CERS Board of Trustees, made up of three people with investment experience, three with retirement experience, and three elected officials. The new board would still be under the authority of the Public Pension Oversight Board." (1)

In the upcoming budget, Lexington must contribute a minimum of $10.3 million ( the real number will be substantially higher) and we will face this every single year that Frankfort does not act (2)

For further reading:

(1) http://www.klc.org/news/3091/Public_Pension_Oversight_Board_talks_about_separating_CERS_from_KRS

(2) http://www.kentucky.com/news/politics-government/article171791272.html

(3) http://www.kaco.org/media/13331/OVERVIEW%20OF%20KRS%20(final)PublicPensTF%20June2012.pdf

 
 

Paid for by David Jones for 11th District Council, M. Melinda Karns, Treasurer
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