Kentucky lawmakers convene for session on pensions

FRANKFORT, Ky. (AP) — For the second time in seven months, Kentucky’s Republican governor called lawmakers back into a special session Friday to deal with the state’s pension problems.

The GOP-dominated legislature convened to consider Gov. Matt Bevin’s pension relief plan for regional universities and quasi-governmental entities, which include public health departments, community mental health centers and domestic violence shelters. The schools and agencies were hit by sharply higher retirement costs starting this month.

The midsummer special session is expected to stretch into the middle of next week. It takes at least five days to get a bill through the legislature. Special sessions cost taxpayers about $66,000 per day from when the sessions begin to the day they adjourn.

The governor rolled out his proposal more than two months ago as a replacement for a measure that he vetoed in April after lawmakers had ended their regular session. Previewing the session, Bevin touted his proposal as “the only fiscally responsible plan” to put the regional universities and quasi-public agencies on a path toward “a sustainable future.”

His remarks drew harsh criticism from the legislature’s top Democrat and the president of the advocacy group that represents 15,000 state retirees and active employees. Both said the governor appeared to be attempting to block any modifications to his proposal. House Democrats have offered an alternate proposal that they intend to present, but Republicans hold commanding majorities in the House and Senate.

Bevin has been wrangling with the pension issue as he seeks reelection. The governor is being challenged by Democratic Attorney General Andy Beshear in November.

In his proclamation formally calling lawmakers back into session, the governor limited the agenda to pension-relief legislation. In December, Bevin called a special session to pass a more comprehensive pension law, but lawmakers went home without taking action.

This time, Bevin spent weeks building support for his plan, and after key members of his team briefed lawmakers, he agreed to a handful of changes aimed at breaking weeks of gridlock. Without any pension relief plan, state leaders worry that some quasi-public agencies would be strained to the point of bankruptcy, causing people to lose their jobs or critical services. Top GOP lawmakers have indicated they’re ready to take action on the issue.

The governor’s proposal would allow the agencies to stay with the Kentucky Retirement Systems at full cost; leave the retirement system by paying a lump sum equal to future projected benefits payments; or buy their way out in installment payments over 30 years. It extends a freeze on pension costs for another year for the regional universities and quasi-public agencies. The proposal also pushes back the deadline for agencies to decide until April 30, after next year’s legislative session concludes. That would give lawmakers time to make any necessary changes.

House Minority Floor Leader Rocky Adkins had harsh words for Bevin’s session-opening proclamation.

“This is clearly a violation of separation of powers and drives a stake in the heart of legislative independence,” he said in a statement Thursday.

Jim Carroll, president of Kentucky Government Retirees said the governor’s proposal is so tightly drafted that it would appear to block consideration of any rival measures.

“We deserve a focused and thorough consideration of both bills,” he said in a statement, referring to the Democrats’ proposed alternative.