For the first time in its history, the assets in Lexington’s Police and Fire pension fund now exceeds $1 billion. Mayor Linda Gorton said it’s evidence of stabilization in the pension program.
Mayor Gorton served in 2012 on a commission that recommended ways to address a financial crisis in the fund at that time. Before reforms were enacted eight years ago, the pension program had a $300 million unfunded liability.
An actuarial study is underway to get a better understanding of the fund’s long-term financial health. A prior study in 2020 estimated that the program is 75% funded.
Lexington’s Police and Fire Pension is unique in Kentucky. It’s governed by the state but funded locally. Gorton said assets in the fund above a billion dollars is a significant milestone in a reform, having a profound positive impact on the financial health of the fund and the city.