A bill that would help local governments with growing costs of pensions that threaten to bankrupt local entities will become law after the General Assembly voted to override the veto on House Bill 362 from Gov. Matt Bevin on Friday.
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% 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 House voted 94-2 to override the veto. The Senate voted 34-4 on the override.