Council approves resolution in support of splitting up state retirement system
Councilman Joe Buckman points to a site plan for the new Peddler’s Mall building to be built on Granite Drive. Buckman expressed his disappointment in the final proposed building.
By JIM BROOKS
Nelson County Gazette / WBRT Radio
Tuesday, Aug. 22, 2017 — Facing a possible substantial increase it the City of Bardstown’s mandatory contributions to its employees retirement system, the City Council approved a resolution that would support withdrawing the County Employees Retirement System (CERS) from the Kentucky Retirement System (KRS).
HR Director Greg Ashworth listens while City Attorney Tim Butler speaks prior to the start of Tuesday’s Bardstown City Council meeting.
Present, KRS consists of three different retirement funds — CERS, Kentucky Employees Retirement System (KERS) and the State Police Retirement System (SPRS). Currently, CERS employees make up 63 percent of KRS participants, and contributes 74 percent of KRS assets.
Greg Ashworth, the city’s HR director, explained that all city employees are part of CERS, which is a more solvent system KERS or SPRS in the Kentucky Retirement System.
KERS is recognized as the worst funded retirement system in the country, Ashworth said, and removing CERS from KRS will the state legislature to deal with KERS’ funding and management issues.
Last month, KRS board announced that it was lowering its assumed rates of return on CERS and KERS investments — a move means participation cities will see their required contributions increase substantially.
For Bardstown, the change means city’s required contributions for CERS non-hazardous employees will jump from 18 percent to 26 percent. Hazardous CERS employees will see their required contributions increase from 31 percent to 44 percent.
All in all, the increase the City of Bardstown will see in its retirement contributions for Fiscal Year 2018 will top half a million dollars.
“Its going to come down to about $547,000 on our payroll for next fiscal year,” Ashworth said.
Ashworth said if the CERS were to separate from the KRS, a new board to govern CERS would be created — a board whose sole interest was to manage CERS for the benefit of its participants.
The resolution is largely symbolic, but follows similar action by dozens of other cities across the state in support of proposed Senate Bill 226, a bill introduced by state Sen. Joe Bowen to separate CERS from the Kentucky Retirement System. The bill has widespread support from cities and organizations that include the Kentucky League of Cities, Kentucky FOP, Kentucky Association of Counties, Kentucky Jailers Association, and others.
Gov. Matt Bevin is promising to address both tax and pension reform during a special session later this year.
CABLE TV, INTERNET RATE CHANGES, SPEED INCREASE. The council gave final approval to changes in the city’s cable TV and cable internet rates. The changes go into effect on Sept. 1st, and those who subscribe to both services won’t see a change in their monthly bill.
For those who subscribe only to the city’s cable TV service, they can expect to see their monthly bill lowered by $3. Part of those savings are offset by a $1.12 increase in the basic cable TV programming charge.
The city’s internet-only subscribers will see their bills increase by $3 per month, but they will also have their existing internet speed increased substantially — in most cases more than double.
In other action, the council:
— approved a utility service and drainage plans for the new Peddler’s Mall building that will be built on Granite Drive.
— approved a Development Review Board recommendation regarding the new Peddler’s Mall building. The 42,120 square foot building will require relocating the rearmost portion of Granite Drive.
— held a closed, executive session for about an hour. City Attorney Tim Butler said the closed meeting was to discuss possible litigation that may involve the city.
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