Costly special session avoided as lawmakers reach pension reform - WDRB 41 Louisville News

Costly special session avoided as lawmakers reach pension reform agreement

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LOUISVILLE, Ky. (WDRB) -- Lawmakers worked late into the night Tuesday to fix the state's struggling pension system and avoid a costly special session.

If lawmakers weren't able to come to an agreement on pension reform, a special session would've cost taxpayers $60,000 a day.

The pension system has a $33 billion deficit that affects retirement plans for state workers, teachers and state police.

One bill will generate $100 million a year to pension plans by tweaking the state's tax code, and reduce a $20 income tax credit to $10.

"This spirit of cooperation and thoughtful solves the most pressing problem facing financial instability of our pension fund," said Governor Steve Beshear

A second bill will place new state employees into a program similar to a 401-K.

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