LOUISVILLE, Ky. (WDRB) -- A Jefferson County city says they simply can't afford to continue paying pensions to retired city workers, and they're asking that the money already paid out to those individuals be returned.

The Audubon Park city council voted to stop payments to all three people currently receiving pension: a former police chief, police officer, and a clerk. 

The city is sending letters to the individuals notifying them of the decision. The council is also asking the former employees to return the money that has been paid to them over the years.

According to city officials, that's a $130, 000 bill for the former Chief of Police alone.
Audubon Park Mayor Dorn Crawford said after months of lengthy legal review, they realized the city's pension system did not hold up under state law.
"Part of the determination was that this entire program was void from the onset," said Crawford.
Crawford said Kentucky law prohibits spending resources beyond a current budget horizon. Specifically, he said, a pension program must be adequately funded. In Audubon Park, he said, neither taxes nor employee contribution were funding the program.

"In order to avoid liability on the parts of the present city officials," Crawford says, "it was imperative to stop what we were doing, and then to make whatever attempts we could to recover any of the proceeds."

The city claims its actions are legal, even required, under state law.

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