Governor Matt Bevin has vetoed legislation that would have given quasi-governmental agencies such as health departments and Sanctuary, Inc. another year of pension contribution relief and says he’ll call a special session to deal with the issue.
In issuing the veto of House Bill 358, he claims parts of the bill “violate both the moral and legal obligation” the Commonwealth has to public sector retirees.
Senator Whitney Westerfield says he has mixed emotions about the veto, but would feel more comfortable if he knew for sure that the legislature will get something passed again during a special session before July 1st that would be a permanent solution for those quasi-governmental agencies.
House Bill 358 would have frozen the required pension system contribution rate at its current level for another year, while giving those agencies an option to get out of the system entirely during the interim period.
The contribution rate would have risen drastically July 1st, 2020 if the agency decided to stay in the current pension system.
Governor Bevin has not given a date for a special session, but says it will come before July 1st. He says it will be “to provide the relief necessary to protect the solvency of these entities and their ability to provide services, while at the same time maximizing funding to the KERS and protecting the inviolable contract rights of retirees.”
Read the governor’s entire veto message here: Gov. Bevin Veto Message_HB358