Owensboro City Commissioners approved a 2.5% cost-of-living adjustment for eligible annuitants in the City’s closed pension fund during Tuesday’s meeting. The increase will take effect with January 2025 pension checks.
The recommendation was brought forward by the Board of Trustees of the City Employees’ Pension Fund, which met in a special session on November 20 and unanimously endorsed the adjustment.
“This is for the closed legacy pension plan established over 40 years ago,” City Manager Nate Pagan said. “The board of each plan recommends the adjustment, and the City Commission votes to ratify it.”
The City’s two closed pension systems include the general fund, primarily for City of Owensboro and Owensboro Municipal Utilities employees, and the police and fire fund. Pagan noted that about 20 individuals remain on the police and fire fund, while 10 remain on the general fund plan.
The increase follows a similar adjustment approved last year when pensioners received a 3.2% cost-of-living increase.
Owensboro Mayor Tom Watson and other City officials emphasized the importance of maintaining support for retired employees while managing the legacy fund responsibly.
“Each year, the Board of Commissioners has approved these adjustments to honor the work and service of our City’s former employees,” Pagan said.
