Cities and Schools See Pension Costs Jump

This from the Owensboro Messenger-Inquirer by way of KSBA:

Owensboro and Daviess County

to see increases totaling $1 million-plus

The city of Owensboro will see its pension costs rise by nearly $900,000 next year while Daviess Fiscal Court will have to pay an additional $400,000 under new contribution rates set by the state last week.

The city, county and other local governments around the state had received a break in their annual pension costs this year with the passage of House Bill 1 during a special legislative session.

To help stem rapidly increasing retirement costs, the pension reform bill dropped the contribution rates that local governments must pay into the County Employee Retirement System for the current fiscal year.

But the new, higher contribution rates approved last week for next fiscal year have government officials scrambling to find the funds to make up the difference.

“We knew this was going to happen,” Owensboro City Manager Bill Parrish said. “We just didn’t know how much.” ...

Brad Hughes at the KSBA eNews Service notes:

Although the following story does not mention it, Kentucky schools also will face similar increased costs because of this action.