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Kentucky Governor Matt Bevin has called a special session of the Kentucky General Assembly to address pension reform.
This comes after a recent ruling by the Kentucky Supreme Court that found the process used by this year’s General Assembly to pass Senate Bill 151, a pension reform bill, was unconstitutional. In a news conference Monday, Governor Bevin says that decision will have many ramifications for the commonwealth, including credit downgrades and possible insolvency.
He called on the legislators to find a solution to the problem, saying the state has a moral and legal responsibility to retirees.
Legislators were to report for special session starting at 8 p.m. Monday and how long that session may last is to be determined. Governor Bevin says nothing about the situation is ideal.
Senate Bill 151 began as a wastewater bill during the 2018 regular session, but was later used as a “shell bill” to carry pension reform measures.
State Senator Whitney Westerfield of Christian County was preparing to head to Frankfort Monday when he spoke to WHOP News.
Representative Walker Thomas of Hopkinsville says he wasn’t surprised by the special session call and believes anything they pass will be similar to the legislation approved during the regular session.
Representative Jason Petrie of Elkton says he has an open mind to the governor’s plan, but he isn’t sure exactly how the special session will go.
Lawmakers arrived to find there were two bills awaiting them–House Bills 1 and 2. The Herald Leader reports that House Bill 1 is similar to Senate Bill 151, but with some provisions removed, including a requirement that the legislature switch to a funding method known as level-dollar funding that requires larger pension payments in the next few years.
House Bill 2 is similar to the failed House Bill 362, the bill that capped pension increases for local governments, school districts and regional universities, but includes a plan that would reduce a 3 percent benefit increase teachers receive when they’ve worked for 30 years to 2.5 percent in 2024.