FRANKFORT, Ky. (AP) - Gov. Steve Beshear has signed legislation intended to shore up Kentucky's financially troubled pension plan for government retirees.
The legislation would provide nearly $100 million a year to make the state's required contribution to the pension plans of state government employees. It also would create a 401(k)-like retirement plan for new employees in an effort to protect the pension plans of current employees and retirees.
Beshear credited "a renewed spirit of cooperation" between himself and lawmakers for reaching an agreement on pensions, which he called the most pressing problem facing Kentucky.
Moody's reacted positively to Kentucky's pension reforms in a weekly credit outlook. The ratings agency termed the pension reforms "credit positive."
However, the state still has a negative rating because of the $18.7 billion unfunded liability.
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