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ORDINANCE #93--J--41769
AN ORDINANCE APPROVING AN INCREASE OF
CONTRIBUTION TO THE POLICE AND
FIREFIGHTERS' RETIREMENT FUND OF THE CITY OF
PADUCAH, KENTUCKY, TO AMORTIZE THE PRESENT
UNFUNDED LIABILITY
WHEREAS, pursuant to an actuarial study performed of the Police and
Firefighters' Pension Fund dated April 1993 as prepared by Bryan, Pendleton, Swats,
and McAlister, it is anticipated that there presently exists an unfunded prior service
liability in the amount of $3,009,080.00; and
WHEREAS, the study reveals that an incongruity exists in the statute
which defines the City contribution to the Fund in that the City's present contribution to
the Fund, as defined by said statute, does not make any payment on the principal of
the unfunded liability, but rather, only provides for interest payments on same; and
WHEREAS, the study recommends that the City increase its
contributions so as to amortize the principal of the unfunded liability; and
WHEREAS, the City is agreeable to increase its contributions to the
Fund so as to make payment on the principal of the unfunded liability based on an
amortization basis of 40 years: :
NOW, THEREFORE, be it ordained by the Board of
Commissioners of the City of Paducah, as follows:
SECTION 1. The City does hereby increase its contribution to the Fund
so as to make payment on the principal of the unfunded liability of the Fund, which
unfunded liability of the Fund is in the projected amount of $3,009,080.00, based an
amortization of said principal over a period of 40 years.
SECTION 2. The City's Director of Finance is hereby authorized and
instructed to pay into the Fund a sum which shall be equal to the sum total of the
following: (a) the normal cost for active members; (b) the amount attributable to the
3.1 % cost of living increase which has been accorded to annuitants by ordinance of
even date; (c) the amount attributable to interest on the unfunded prior service liability;
and (d) the amount attributable to payment on the principal amount of the unfunded
prior service liability based on an amortization of 40 years; subject, however, to a total
maximum annual contribution of $267,752.00. The City's Director of Finance is further
authorized and instructed to make the foregoing contribution on such periodic basis as
determined by him.
SECTION 3. This Ordinance shall be given two separate readings in
accordance with law and shall become effective upon publication of title and certified
summary thereof.
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Introduced by the Board of
Adopted by the Board of Q
Recorded by City CIE
Published by The Paducah Sun
ORD\7915
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171