A municipal order was approved during Tuesday’s City Commission meeting granting a 1.9% cost of living adjustment (COLA) to police officers and firefighters enrolled in the City’s closed employee pension plan. The pension plan currently serves 51 retired City employees and first responders and was a one-time option that has been closed since August 1988.
“This is a closed legacy plan and not the Kentucky Retirement System in which our current and recently retired City employees participate,” said City Manager Nate Pagan. “A 1.9% COLA was recommended by the board for the plan beginning last month. Last year, a 1.6% adjustment was provided.”
As previously reported by OT, the closed City employee pension plan is currently considered “broke,” though officials stated they would do whatever it took to ensure those on the plan maintained their pension until the program eventually dissolved.
“This fund is broke, meaning we ran out of funds to pay the pensioners,” Angela Waninger, director of finance and support services, said two weeks ago. “The current administration will not let the pensioners down. So this fund is being funded by the general fund.”
The municipal order received approval from Commissioners Larry Maglinger, Jeff Sanford and Pam Smith-Wright as well as Mayor Tom Watson. Commissioner Larry Conder was absent from the meeting and did not vote.
