Last night, Governor Bevin announced that he has vetoed the Higher Education Pension Reform Bill (HB 358) that the Kentucky General Assembly passed on March 28.
The governor has pledged to call a special legislative session to revisit the matter and to provide the relief necessary to protect the solvency of our university and other entities impacted by the current pension crisis. HB 358 would have given us a path to financial predictability relative to our pension costs. Most importantly, the options provided would have allowed us the opportunity to avoid the drastic contribution increase from 49 percent to 84 percent.
Despite the veto, we are hopeful that the governor and legislature find an acceptable solution that will allow us to consider the needs of our employees and avoid the serious impact of inaction.
Thank you for all you do for our university, our students and our region. We will continue to share details with you as we learn more information throughout the process.