By Jacqueline Pitts, The Bottom Line
Legislation to bring some relief to local county and city governments as the costs of pensions continue to rise was passed by the House and Senate Monday.
After passing a pension bill to reform the retirement systems for the future last week, the Senate put a bill back in motion that would help local governments with growing costs of pensions that threaten to bankrupt local entities.
The Senate Appropriations and Revenue Committee met Monday afternoon to amend and replace language in House Bill 362 with a committee substitute that contains the language from Senate Bill 66.
The legislation would allow for a phase-in of increased costs to city and county governments by ensuring the costs can only grow by a maximum of 12 percent each year for up to 10 years. If not passed, many local governments are facing millions of dollars in increased costs that will take up much of their budgets and potentially force tax increases.
The bill also deals with allowing employers in the Kentucky Retirement System (KRS) to exit the system as those costs continue to grow and many entities are seeking to cease participation in the system.
The amended version of House Bill 362 was passed by the Senate with a 35-3 vote and passed in the House with a 90-2 vote. The bill is now heading to the governor’s desk. Keep checking The Bottom Line for the latest on this legislation and other bills.