LOUISVILLE, Ky. (WDRB) -- The Kentucky Senate has passed a bill that would let some agencies leave the state's beleaguered pension system.
The Senate approved House bill 358 by a vote of 25-12 on Wednesday. The bill would let some public universities and quasi-governmental entities leave the pension system without paying what they owe. State officials said it could cost the beleaguered system as much as $1 billion.
Republican Sen. Chris McDaniel acknowledged the bill will add to the pension system's woes. But he warned agencies would likely file for bankruptcy if the bill did not pass because they cannot afford increased pension contributions.
The bill now heads to the House of Representatives, where Republican Speaker David Osborne said it will likely pass.
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