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Retiree tells commissioners KPPPA audit shows $8,129 repayment demand; requests city review
Summary
Retiree Mark McDow told the Ashland commission that a third postretirement audit by the Kentucky Public Pensions Authority reduced his monthly benefit and led to a demand to repay $8,129; he urged the city legal department to review KRS 61.685 and to identify other affected retirees.
Mark McDow, a retired Ashland law‑enforcement commander, told the Board of City Commissioners on June 25 that a third KPPPA (Kentucky Public Pensions Authority) postretirement audit reduced his monthly benefit and triggered a demand to repay $8,129.
McDow said he first retired effective Aug. 1, 2017, received routine postretirement audits in 2017 and 2018 that increased his benefit slightly, but that a full audit completed April 1, 2026 produced a monthly reduction of $78.78 and a notice that $8,129 was owed for amounts the authority said were overpaid. “I owed them $8,129 and change,” McDow told the commission.
McDow said the KPPPA letter cited KRS 61.685 and that he missed the 30‑day window to file a grievance because he did not see the agency’s message in his online account. He asked the city legal department to review the statute and to determine whether the city has standing to pursue relief or seek reconsideration on behalf of retirees who lack evidence of fraud or intentional misrepresentation.
A finance representative told the commission that the KPPPA has determined that payments covering accumulated sick leave above 120 days are not pensionable and that the agency has been refunding contributions and adjusting benefits in affected cases. The finance representative said the agency has completed refunds for about half of cases identified and that amounts vary depending on whether the employee was designated hazardous or nonhazardous; one nonhazardous retiree’s monthly change was reported as about $20. The finance representative described the issue broadly as a pension‑spiking review related to sick‑leave buyback.
Commissioners asked staff to gather letters and determine how many Ashland retirees are affected and the total repayment exposure; McDow asked that city legal staff consider whether the city can request a pause or further review by the KPPPA to protect retirees and widows who may face financial hardship.
Next steps: City staff said they would review the statute cited by KPPPA and obtain copies of the notice letters; the commission encouraged retirees to provide their correspondence to the mayor’s office and HR for review.
