Governor Rejects Pension Bill, Vows Special Session

FRANKFORT, Ky. (AP) — Kentucky Gov. Matt Bevin has vetoed a pension bill that was aimed at providing relief to some state-funded agencies struggling with ballooning retirement payments.

Bevin said in his veto message that he will call a special legislative session before July 1 to give lawmakers another chance on the issue. The Republican governor said the measure violated the “moral and legal obligation” the state has to the affected retirees.

The measure was passed by the GOP-dominated legislature on the last day of this year’s regular session. As a result, lawmakers cannot override Bevin’s action.

The proposal would have let the state’s 118 quasi-governmental agencies — which include rape crisis centers, public health departments and some universities — leave the state’s troubled pension system. But they would have exited by paying less than what they owe.