Metro Council Committee to Hear Testimony from the Executive Director of Kentucky Retirement Systems
Tuesday April 22, 2008
The Metro Council’s Government Accountability and Audit Committee will hear testimony tomorrow, April 23rd at 3:30 p.m. from Mr. Mike Burnside, Executive Director of the Kentucky Retirement Systems. Mr. Burnside was asked to present an historical view of the present pension plan as well as any proposed changes to the plan.
In the Mayor’s Fiscal Year 2008 budget address, the Mayor described the escalating cost of pensions and retirement costs by stating “We’ve seen our share grow from $31 million in 2004 to $66 million in the year ahead – more than double- while at the same time the number of employees in Louisville Metro Government has actually gone down. If this pattern continues, our share would grow from $66 million to $100 million two years from now.” However, according to a Kentucky Retirement Systems’ memo dated November 15, 2007, the employer contribution rate for CERS non-hazardous employees will decrease from16.17% to 15.58% and from 33.87% to 31.99% for hazardous employees. The Committee will hear testimony from Mike Burnside concerning the rate reductions for Fiscal Year 2009 and hopefully his projection for future years.
The Budget Committee will begin budget hearings and negotiations in June after the Mayor presents his proposed budget on May 29, 2008. Having Mr. Burnside testify now will insure the Budget Committee has the necessary information concerning pension funding needs.
“After learning last November that the pension cost as a percent of payroll will actually decrease for Fiscal Year 2009, we are eagerly awaiting the testimony of Mr. Mike Burnside so we can determine the effect this positive news will have on next month’s budget process.” – Chairman, Kelly Downard, District 16
KellY Downard (D) 16