August 22, 2014

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Legislators approve historic pension reform

Agreement fully funds, stabilizes pension system with revenue neutral plan

After weeks of bipartisan negotiation led by Governor Steve Beshear, the General Assembly passed bills stabilizing and modernizing the state’s pension system. The legislative package creates funding to pay the state’s full recommended annual pension contribution without threatening key state services like education and public safety.

The companion bills, House Bill 440 and Senate Bill 2, passed both chambers this evening, eliminating the need for a special session on pension reform.

“The looming pension liability threatened to gut funding for education and all other priorities. It demanded our immediate and bipartisan cooperation,” said Gov. Beshear. “No matter our political philosophies, none of us were willing to put our kids at risk of a stripped-down education. We all agreed we could not simply change our pension plan without paying for it. I’m proud of the bipartisan work that has been done in Frankfort to find a reasonable, practical solution to the pension challenge.”