LEXINGTON — Lexington’s Police and Fire Retirement Fund Board on Wednesday approved a higher employer contribution rate for the coming fiscal year, even as the pension system posted strong investment returns and modest gains in overall funding health.
The board voted unanimously to set the city’s required contribution at 51.24% of payroll for fiscal year 2027, up slightly from the prior year, following an actuarial presentation showing the fund earned a 10.87% investment return in the most recent year — well above its assumed 7% rate.
The system’s funded ratio improved from 71.3% to 72.5%, while unfunded liabilities declined by about $2 million, according to the annual actuarial valuation presented by Cavanaugh Macdonald Consulting. Total assets now exceed $1 billion, with roughly $386 million remaining in unfunded obligations…