Kentucky Gov. Matt Bevin signed pension legislation Wednesday after lawmakers delivered the bill he wanted to relieve regional universities and community social services agencies from crushing retirement costs, the Associated Press reported. Pension issues have cast a long shadow over the Republican governor’s tenure in office, as he and lawmakers have struggled to shore up one of the country’s worst-funded public pension systems. The GOP-dominated Senate voted 27-11 to end work on the bill, which replaces a similar measure that Bevin vetoed in April after lawmakers had ended their regular session. The measure took effect after Bevin’s signature. Soon after that, the legislature ended the high-stakes special session that Bevin convened last Friday in the midst of his reelection campaign. Bevin said the bill doesn’t resolve the state’s pension woes but called it a “responsible and appropriate next step in moving toward financial solvency.” The new law aims to bring relief to regional universities and quasi-governmental entities hit recently by massive increases in pension costs. The measure reflecting Bevin’s plan would spare regional universities and quasi-public agencies from the spike in pension costs by freezing rates at the much lower amounts for another year. It allows affected agencies to decide next year whether to stay in the state retirement system and face a big increase in contribution rates or agree to leave. State leaders warned that, without relief, some quasi-public agencies would be strained to the point of bankruptcy. Bevin’s proposal narrowly passed the GOP-led House but ran into less resistance in the Senate. The special session cost taxpayers about $66,000 per day.
