The Lexington Police and Fire Subcommittee convened on March 12, 2025, to address several pressing issues affecting city employees, particularly concerning pension fund access for police recruits and officers.

The meeting began with a discussion about the challenges faced by several police recruits and officers who have previously contributed to the County Employees Retirement System (CERS) from other employers. These individuals are currently employed by the city but are unable to access their CERS funds due to state regulations. The subcommittee noted that while these employees are contributing to the city’s pension fund, they are barred from withdrawing or rolling over their previous retirement savings.

One officer expressed frustration over the inability to withdraw her funds, which are currently accruing dormancy fees. The subcommittee members acknowledged that this issue is rooted in state statutes, which they cannot change. They discussed the implications of these restrictions, highlighting that employees are effectively trapped in a situation where they cannot contribute to their old retirement accounts, leading to financial losses.

The conversation shifted towards potential solutions, with members suggesting that the subcommittee should advocate for legislative changes to allow these employees access to their funds. Options discussed included enabling rollovers to Individual Retirement Accounts (IRAs) or allowing employees to withdraw their funds despite penalties. The subcommittee recognized that this issue extends beyond their department, affecting many state employees in similar situations.

In conclusion, the subcommittee agreed to pursue discussions with state legislators to seek a resolution that would grant employees access to their retirement funds without incurring excessive fees. The meeting underscored the need for systemic changes to support city employees facing financial challenges due to restrictive pension regulations.