[{"_1":2,"_87":-5,"_88":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},"mediaId",6560445,"mediaKeyId","3338944-1d9c2c0b1b36138169abd577fb6bb6d1","parentId",3338944,"title","Pension staff to tighten 'fit‑for‑duty' medical form; board committee to review revised form before board approval","audioSeconds",667,"startMs",4399000,"endMs",5066000,"viewUrl","/Search/View?dp=1&key=3338944-1d9c2c0b1b36138169abd577fb6bb6d1&start=4399&end=5066","thumbnailUrl","https://assets.pipeline.soar.com/3338944-1d9c2c0b1b36138169abd577fb6bb6d1/thumbnail_4399000.jpg","articleUrl","/articles/6560445/Lexington-City/Fayette-County/Kentucky/Pension-staff-to-tighten-fitforduty-medical-form-board-committee-to-review-revised-form-before-board-approval","mediaUrl","https://secure.pipeline.soar.com/6560445-122d5e0dd47a12542df5d57817178515/orig.mp4?Expires=1775999833&Signature=j7yypRAHPSY7TafaeGBzFVyTO5axX-zCuFCCZ4dtpTU28SfaVN5dZMBWVLiSMMrFZHhtqT8RU7jlVPXlcAoI0jh8slHVYHLtvMkWXUPERVGkDJ88akNLZJFk-VEL8UciP1FbNkkEy3GzHZ-b2BFdY2jHN60xboR4ZvZiJCDr9eFDhYlkQvsFdOCYAW-ibt-Nig-MZYUnd4kymJY4~GTcu91GLihZpBhSVgvx2agBOLkeYPs6fx10Zr6epjhecrLGh2~NZgHTDnROMwsivx5Ip87k7Du13AM8Zy-AX-bLtdvGeBCOgoFYVdJKpi7iupnhyDLrRhwaaCKQKyJ~-7xr2A__&Key-Pair-Id=KUT5TJCACFTXG","author","Lexington","date","2025-05-14T00:00:00Z","article","Pension staff told the Lexington City Pension Board subcommittee they will tighten the city’s fit‑for‑duty medical form used in disability retirement reviews and bring a revised version back for committee and board approval.

Staff members and committee members described recurring problems with physician forms: some submissions had every capacity marked “unable” or every capacity marked “able,” and many physician signatures were illegible or lacked a printed name and contact information. Staff said those errors create heavy administrative burdens and can delay disability determinations.

During the discussion staff proposed several practical changes and received the committee’s agreement in principle. The agreed changes include: adding a printed physician name and contact information (phone or office), removing or clarifying confusing date fields that may be misinterpreted, rejecting and returning forms that are internally inconsistent (for example, every capability box marked “unable” when evidence suggests otherwise) and requiring resubmission. Staff also said that if an applicant requests material additions to a previously submitted medical record (for example, adding an additional body part) the case should be re‑evaluated and typically require a new independent medical evaluation with a different provider.

Why it matters: Committee members said inaccurate or incomplete physician forms have become common, require staff time to correct and risk undermining confidence in the disability process if left unchecked. As one staff member put it, “We’re not gonna accept it that way” when forms are clearly incorrect; the committee agreed staff should return improperly completed forms to applicants and ask for corrected submissions.

Next steps: Staff will revise the fit‑for‑duty form to include a printed physician name and contact information and will remove or reword the confusing date field. The revised form will be presented to the subcommittee for review at the next meeting and then submitted to the full pension board for formal approval. Staff said they will also prepare brief guidance for applicants and treating physicians describing acceptable submission format (chronological order, single‑side pages, no blank pages) to reduce repetitive resubmissions and processing delays.

Ending

Staff will bring a revised fit‑for‑duty form and a short cover page/explanatory note to the next subcommittee meeting; the subcommittee will review and, if satisfied, forward the form to the pension board for approval.","mediaType","Video","parentTitle","Lexington - Police & Fire Pension Subcommittee Meeting - May 14, 2025","oneSentenceSummary","Lexington City pension staff told the subcommittee they will revise the form used to document medical ‘fit for duty’ determinations for disability retirement to require clearer physician identification and to return forms that are internally inconsistent; staff will bring a revised form to the subcommittee, then the full board, for approval.","taxTitle","Lexington City, Fayette County, Kentucky","taxId",5707,"location","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6560450,"Callan consultants tell Lexington pension committee portfolio can be modestly de-risked while adding private credit; follow-up meeting set",3499,868000,4367000,"/Search/View?dp=1&key=3338944-1d9c2c0b1b36138169abd577fb6bb6d1&start=868&end=4367","https://assets.pipeline.soar.com/3338944-1d9c2c0b1b36138169abd577fb6bb6d1/thumbnail_868000.jpg","/articles/6560450/Lexington-City/Fayette-County/Kentucky/Callan-consultants-tell-Lexington-pension-committee-portfolio-can-be-modestly-de-risked-while-adding-private-credit-follow-up-meeting-set","https://secure.pipeline.soar.com/6560450-1610460d9d09e60a287f601ea0f20b8e/orig.mp4?Expires=1775999833&Signature=WhhfhwOuPWdmM2SUYOkrX8o~RYjCXKn~ZObAxQBaiINHz7AwoCP69V6vIYtAACt6ydrJlW8y-15ADEkrSJPUuqfWCt0dD1B4eUhBu5BRkZcypvLrRdzPKxEybR9tIaPTrKPhdioLQNkGEhO8zo-CPM8E94i8DHTx4RESZJtJuRClITWPLG6yB9MkCX2M6iXXRZ5WJKfdmiUXxTLFXCp0E6F0PCcmBO8eNCmTZUth-JjiosBbngPtls3KGTu-ZVNEGnCQiX-CuaMmmSnUTmWp02ip8tlNMxVAkJRiY215vFpkrfud0xcI~ToiMie2b049cdpM69Es9OVPlHr4n~C3VA__&Key-Pair-Id=KUT5TJCACFTXG","Callan investment consultants told members of the Lexington City Pension Board subcommittee that the city’s current asset mix is projected to meet the plan’s 7% actuarial return target over a 10-year horizon but that the board can modestly increase defensive allocations without sacrificing expected return.

The presentation, led by John Perron, senior vice president in Callan’s capital markets group, laid out two main paths: (1) incrementally increase the allocation to core fixed income (the consultants suggested around a 5 percentage-point increase funded from public equities) to reduce portfolio volatility while still targeting 7% long-term returns and (2) consider introducing alternative assets — specifically private credit, private equity and infrastructure — with private credit shown as the most diversifying of the three in Callan’s “straw-man” mixes.

Callan presented baseline numbers to illustrate the tradeoffs. “The current allocation has a projected 10 year return of about 7.12%,” Perron said during his slides. He and other Callan staff noted that core fixed income forecasts have risen since the prior asset-liability study, with expected 10-year returns for high-quality fixed income roughly in the mid-to-high 4 percent range (around 4.75–5.0%), improving the case for modestly stronger allocations to bonds.

Why it matters: Callan showed that because the spread between expected equity and fixed-income returns has narrowed relative to several years ago, moving a small slice of the portfolio into investment-grade fixed income can materially reduce downside volatility without dropping below the actuarial return assumption. As Perron summarized, an incremental 5% shift into core fixed income (funded from public equity) would still leave the plan with an expected return near the 7% target while lowering the portfolio’s standard deviation.

On alternatives, Callan presented private credit as a relative hybrid: it offers yields comparable to publicly traded high-yield bonds but with a liquidity premium and a degree of structural covenant protection. In Callan’s modeling, adding 5% to a private credit allocation (funded roughly 3% from U.S. equity and 2% from international equity in the firm’s straw-man) produced an improved Sharpe ratio and modestly lower standard deviation compared with pure equity exposure. Callan cautioned private credit and private equity carry longer lockups and different operational requirements: private credit looked like a multi-year investment (roughly 3–5 year effective liquidity in typical vehicles), while private equity typically involves a longer illiquidity profile (around 10 years in closed-end structures).

Committee reaction and next steps: Several board members signaled informal agreement with a modest move toward fixed income and interest in examining private credit more closely. Board member Aaron said he was “comfortable with … moderately adjusting U.S. and global together” and called private credit “probably my preference.” Another board member, Tommy, said he could be persuaded to add private credit but preferred modest steps.

The committee agreed, by general consent, to schedule a follow-up subcommittee meeting for more detailed modeling and to consider operational implications (vehicles, liquidity, fee and administrative structure). The group set a virtual meeting for 10:30 a.m. on June 25 to review more detailed asset-liability modeling and to dig deeper on private credit and the non-U.S. structure. Callan said it would deliver more detailed modeling at that session.

Discussion-only items and constraints: Callan emphasized that nothing in the current asset mix was “broken” and that the proposals are intended as incremental, not radical, changes. The consultants repeatedly framed choices as trade-offs between expected return and risk (standard deviation) and highlighted that private credit and private equity carry liquidity and implementation differences that will require investment-policy or operational adjustments if the board pursues them.

Ending

Staff and the consultant will return to the subcommittee with modeled mixes that show the effect of (a) adding roughly 5 percentage points to core fixed income funded from public equities and (b) alternatives mixes that add 5 percentage points to private credit (funding sources shown as a mix of U.S. and global ex‑U.S. equity). The board also requested modeling that tests a modest home‑country bias (reducing international equity by about 4%) and the operational steps needed to permit private-credit allocations within the plan’s investment policy.","Investment consultants from Callan presented asset-liability analysis showing the pension plan's current mix projects a 10-year return of about 7.12% (actuarial target 7%), recommended investigating a modest shift to core fixed income and adding private credit, and the committee agreed to a follow-up session to model proposed mixes.","actionData","errors"]

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Pension staff to tighten 'fit‑for‑duty' medical form; board committee to review revised form before board approval

Callan consultants tell Lexington pension committee portfolio can be modestly de-risked while adding private credit; follow-up meeting set