LEXINGTON, Ky. (FOX 56/WKYT) – The assets of the Lexington Police and Fire pension fund recently topped $1 billion for the first time in its history, Mayor Linda Gorton announced Monday.
In 2012, Gorton was part of a commission that recommended changes to resolve what was then a financial crisis in the fund, threatening the retirements of police officers and firefighters.
“This is a significant milestone in a reform that is having a profound positive impact on the financial health of the fund, and of our city,” Gorton said. “The changes that were made ensured that our first responders would have a safe and secure retirement.”
An actuarial study is underway get a better understanding of the fund’s long-term financial health. A previous study in 2020 estimated that it is 75% funded.
“We won’t be satisfied until it is at 100%,” Gorton said.
Before reforms were enacted in 2013, the pension had an estimated $300 million unfunded liability.
Lexington’s Police and Fire Pension is unique in Kentucky; it is governed by KRS, but funded locally.
“By working together – community members, city and state government, and police and fire representatives – Lexington solved a problem that continues to challenge other cities,” Gorton said. “Everyone compromised a little to make progress for our City, and to protect our police and fire retirees.”