Lexington, Ky (WKYT) - Lexington Mayor Jim Gray says negotiators have reached an agreement to shore up the city's police and fire pension.
City officials said Friday that the plan would immediately cut the city's unfunded liability by about 45 percent. Lexington's police and fire pension currently has a $296 million unfunded liability.
Officials say the plan was agreed to Thursday night by Gray and representatives from the police and fire unions and the pension board. The plan is being outlined at a meeting in Lexington on Friday.
The plan includes lower annual cost-of-living adjustments and increased contributions from active and future employees. The city has agreed to increase its payments to the Policemen's and Firefighters' Retirement Fund by $9 million a year.
Pension payments have ballooned over the past decade in Lexington.