Gov. Bevin on pension crisis: 'the piper has to be paid'

LOUISVILLE, Ky. (WDRB) -- The state's public pension crisis is not going to be solved easily.

Governor Matt Bevin said that's the lesson from a ruling by the state's Supreme Court that found Centerstone Services, which used to be Seven Counties, cannot leave the pension system through bankruptcy. The Louisville-based mental health provider owes an estimated $130 million to the Kentucky Retirement Systems, which manages the state's pension fund.

The court ruled that Centerstone had a statutory obligation to pay into the system, which bankruptcy does not erase. Centerstone had argued that it had a contractual obligation.

"Here's the reality. The obligation doesn't leave," Bevin said. "And now the courts have ruled that the obligation is still there. But who is it that actually has that obligation? It's us. It's the taxpayers. We don't get to get off the hook. At the end of the day, the piper has to be paid."