Fort Thomas council reviews $277,000 CERS payment, auditors and residents press for answers

Fort Thomas City Council held a special meeting to discuss a $277,000 payment made to the County Employee Retirement System (CERS/KPPA) tied to pension "spiking" that occurred in prior years, and to review how interest and audit adjustments affected this year’s net cost.

Interim Finance Director Linda Chapman told the council that an audit adjustment recorded as of June 30, 2023 established a payable of $169,000 against the liability and that the 2024 payment of $277,000 effectively produced a net expense of about $108,000 for the current year. Linda said the city’s review of KPPA records found only one other small instance (a roughly $300 entry involving a crossing guard) and that the core issue dated to changes in state law and practices around 2013–2018.

Chapman explained the mechanics the council heard: historically some retirements used a city employee’s highest months to annualize pay, creating a larger "high-three" basis for pension calculations; state changes capped excess earnings at 10 percent to limit future spiking and shifted how any excess is handled. "There had to…