Ky Cities, Counties Faced With Rising Retirement Costs
Frankfort – The Kentucky Retirement Systems Board of Trustees will require larger contributions from local governments to cover the rising costs faced by the county employees retirement system in the coming year.
Local governments will now contribute 18.9 percent of non-hazardous duty employees' salaries to the retirement system, and for hazardous duty employees, the contribution rate will be 35.7 percent. That reflects a 2 percent and 2.5 percent increase respectively.
The Kentucky League of Cities says the higher rates will increase the costs to city governments by some $17 million next fiscal year. Some local officials are warning the increase could lead to layoffs.