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ORDINANCE NO. 97-11-5763
AN ORDINANCE APPROVING A COST OF LIVING INCREASE TO THE
ANNUITIES OF ELIGIBLE ANNUITANTS AND INCREASING THE BENEFITS FOR
CERTAIN WIDOWS OF DECEASED ANNUITANTS UNDER THE POLICE AND FIRE
FIGHTERS' RETIREMENT FUND OF THE CITY OF PADUCAH, KENTUCKY
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WHEREAS, on October 27, 1997, the h Board of Trustees of the Police and Fire
Fighters' Retirement Fund of the City of Paducah, Kentucky ("Board") adopted a resolution
wherein the Board accorded to eligible annuitants an annual increase of cost of living to the extent
of 2.3%, retroactive to July 1, 1997; and
WHEREAS, it is the position of the City that the Board's attempted
implementation of such increase of cost of living is unauthorized pursuant to KRS 95.859(3) since
such increase to cost of living of eligible annuitants is not supported on an actuarially sound basis
by the Police and Fire Fighters' Retirement Fund of the City of Paducah, Kentucky ("Fund"); and
WHEREAS, it is the further position of the City that since such increase to cost of
living for eligible annuitants is not supported on an actuarially sound basis by the Fund itself, an
increase of cost of living to eligible annuitants may only be implemented in the event the City, in
its sole discretion, provides additional contributions to the Fund to fund such increase of cost of
living to eligible annuitants; and
WHEREAS, the City is agreeable to increase its contributions to the Fund so as to
fund and increase of cost of living to eligible annuitants to the extent 2.3 percent from and after
July 1, 1997; an increase of cost of living to eligible annuitants to the extent of 2.3 percent from
and after July 1, 1997.
BE IT ORDAINED BY THE CITY OF PADUCAH, KENTUCKY:
SECTION 1. The City does hereby agree to increase its contribution to the Fund
so as to fund an increase of cost of living to eligible annuitants to the extent of 2.3 percent from
and after July 1, 1997. To effectuate the foregoing, the City's Director of Finance is hereby
authorized to pay into the Fund $323,150 which is equal to the total of such increase to the
eligible annuitants from and after July 1, 1997, through June 30, 1998.
SECTION 2. The City's Director of Finance is further authorized to pay to each
eligible annuitant a lump sum equal to the aforesaid increase to each eligible annuitant's annuity
from and after July 1, 1997, to date of payment and to thereafter pay to each eligible annuitant an
increase to such eligible annuitant's annuity of 2.3 percent.
SECTION 3. The City's Director of Finance is further authorized to pay into the
Fund $328,831 which is to partially fund the remaining unfunded pension liability.
SECTION 4. This Ordinance shall in no manner be intended or construed as any
commitment or intent, either expressed or implied, by the City to fund any other additional
increase or cost of living to eligible annuitants which may be considered by the Board in the
future, unless such increase as may be determined by the Board is supported on an actuarially
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sound basis by the Fund itself as defined under KRS 95.859(3), or unless otherwise approved by
the City Commission.
SECTION 5. This ordinance shall be read on two separate days and will become
effective upon summary publication pursuant to KRS Chapter 424.
ATTEST:
Lerin'ta Smith, CityClerk
Introduced by the Board of Commissioners October 28, 1997
Adopted by the Board of Commissioners November 11, 1997
Recorded by Lenita Smith, City Clerk, November 11, 1997
Published by The Paducah Sun, November 18, 1997
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