Governor Vetoes Bill To Help Agencies Leave Pension System

Posted at 3:42 PM, Apr 05, 2018
and last updated 2018-04-05 15:42:25-04

LEXINGTON, Ky. (AP) – Kentucky’s Republican governor has vetoed a bill that would make it easier for agencies to leave the state’s troubled retirement system.

Matt Bevin said he vetoed House Bill 362 because it would let agencies leave and make payments without interest on the enormous cost to leave the system. Bevin said that could potentially cost taxpayers up to $2 billion.

The bill also would have given relief to city and county governments facing increased pension payments. Bevin says he supports that part of the bill. He urged lawmakers to pass a bill with that language in it when they reconvene next week.

Republican Sen. Chris McDaniel, who sponsored the bill, said Bevin’s concerns are valid but noted many agencies that need to leave the system don’t have the money to make those payments.

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