Kentucky Governor Signs Pension Bill; Lawsuits, Protests Coming

Kentucky Gov. Matt Bevin (R) signed a pension overhaul bill shifting new workers to a cash-balance plan days after he demanded more funding to chip away at the state’s $60 billion in unfunded retirement liabilities.

The law, signed April 10, requires level-dollar funding for state retirement plans that front-loads payments up to about $3 billion annually in an attempt to keep the state systems from insolvency. The law also caps some sick-leave benefits, eliminates some death benefits, and makes it easier for the state to curtail benefits to new hires. However, the law doesn’t provide new revenue or other ...