HomeMy WebLinkAboutResolution - Separation of CERS from KRSRESOLUTION
A RESOLUTION IN SUPPORT OF THE SEPARATION OF THE COUNTY EMPLOYEES
RETIREMENT SYSTEM FROM THE KENTUCKY RETIREMENT SYSTEMS
WHEREAS, The City of Paducah has employees invested in the County Employees
Retirement System;
WHEREAS, the County Employees Retirement System is currently funded at 62
percent, a higher funded ratio than it was prior to passage of S132;
WHEREAS, the Kentucky Employees Retirement System is the worst funded
system in the U.S. and was noted by R.V. Kuhns, Inc. as being set to undergo financial
hurdles of "persistent funding shortfalls, elevated contribution levels, unsustainable payout
ratios and in the worst-case scenario, the potential for the complete depletion of the asset
base";
WHEREAS, total assets of the County Employees Retirement System are about $12
billion, 73 percent of the total Kentucky Retirement Systems' assets;
WHEREAS, administrative costs for the Kentucky Retirement Systems have
increased 245 percent since 2000, and the County Employees Retirement System pays 63
percent of those costs;
WHEREAS, separation of the County Employees Retirement System would result in
the creation of a new nine -member board whose sole responsibility would be the management
of the County Employees Retirement System;
WHEREAS, the current 17 -member Kentucky Retirement Systems Board of Trustees
has only six seats for County Employees Retirement System representatives, and the
Kentucky Retirement Systems Board of Trustees Investment Committee has no
representative from the County Employees Retirement System;
WHEREAS, separation of the County Employees Retirement System from the
Kentucky Retirement Systems would mean local control of local pensions and would ensure
the needs of the County Employees Retirement System are met so it can continue its current
path of growth for years to come;
NOW, THEREFORE, BE IT RESOLVED That the Board of Commissioners of the City
of Paducah supports the separation of the County Employees Retirement System from the
Kentucky Retirement Systems.
This Resolution shall be in full force and effect from and after its adoption.
,ATTEST:
1�,'/1'Y1lr3LGrJLG JL./�8�.
Tammara S. Sanderson, City Clerk
"Mayor
Adopted by the Board of Commissioners, August 8, 2017
Recorded by Tammara S. Sanderson, August 8, 2017
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