Special session called for Friday

Governor calls special legislative session on pensions of quasi-governmental agencies and regional universities

By Senator Denise Harper Angel

FRANKFORT — On the last day of the 2019 Legislative Session, the majority party passed a bill that would, supposedly, provide relief from the rise in pension costs to quasi-governmental agencies and regional universities. The Governor later vetoed the bill intending to call lawmakers back together to pass a different plan. With the clock ticking the Governor is now calling a special session to address the issue. 

As of July 1, local agencies such as our county health departments, mental health nonprofits, and other quasi-public agencies along with the state’s regional universities have begun to see a rise in pension costs. The original bill passed by the majority would have allowed employees to opt-out of the system and into a 401k-style plan. This maneuver was a path to insolvency -- a path to bankruptcy.

Here is the problem -- the Governor's proposal foots the bill to the taxpayer, increases pension debt, and further harms an already struggling pension system. Moreover, it jeopardizes the retirement of public employees that have paid their dues and committed their careers to public service. His bill does not aid our health departments and the other quasi agencies nor the universities.

Bi-partisan solutions have been brought forward that offer much more stability to the quasi agencies and universities. These plans were thoroughly vetted by actuaries and supported by stakeholders, but the Governor has dismissed any plan other than his own. If we were to approach this special session in a bipartisan, common-sense manner, there would be more than enough votes to pass something we all agree on. Instead of bringing others to the table, we see the Governor proceeding to drum up the exact number of votes needed for his bill.

In any case, the Governor is calling a special session now. Members are due at the Capitol on Friday, July 19. I will keep you informed on any updates as they develop. If you have any comments, questions or concerns please do not hesitate to contact me by email at Denise.HarperAngel@LRC.KY.GOVor by phone on the legislative message line at 1-800-372-7181.