Ky. House Oks pension overhaul

FRANKFORT, Ky. -- Republican lawmakers in Kentucky have resurrected a bill to overhaul one of the nation's worst-funded pension systems, passing it Thursday evening while overriding the recent protests of thousands of teachers.

The 291-page bill re-emerged suddenly Thursday afternoon in place of a sewage bill that had passed the Senate weeks earlier. It seeks to preserve most benefits for public employees. Retired teachers, who are not eligible for Social Security benefits, would still get a raise of 1.5 percent each year. And it would not change how long current teachers must work before being eligible for full retirement benefits.

Soon after House passage, the state Senate immediately began debating it. Republican Senate President Robert Stivers told reporters the Senate would vote on it later Thursday and it was likely to pass and be sent to GOP Gov. Matt Bevin for his consideration.

"I would assume that we will accept it as is," Stivers said.

Sudden movement on the bill at the state Capitol drew immediate protests as opponents gathered outside Senate chambers, chanting loudly: "We will remember in November!"

The bill came up so quickly some lawmakers signaled they didn't know how it would financially impact the system. Republican Rep. John "Bam" Carney said lawmakers expect it to save $300 million over the next 30 years. But Kentucky is at least $41 billion short of the money it needs to pay retirement benefits over that same time.