Story by Ava Chuppe
Contributing writer
Gov. Matt Bevin has called lawmakers into special session beginning Friday, July 19.
The special session will be devoted to passing a pension bill to provide much-needed relief to Kentucky universities, including Murray State, and other quasi-agencies.
Kentucky’s pension system is more than $43 billion in debt.
Bevin vetoed a proposed pension bill earlier this year because it had parts that he said were illegal as well as incorrect dates.
In the new fiscal year, which began on July 1, Murray State’s pension costs rose from 49.47% to 83.43% along with other universities and quasi-governmental agencies.
“This major increase on July 1 equates to an additional $4 million expense in the university’s budget,” President Bob Jackson said. “This pension rate is unsustainable and places tremendous pressures on our budget and greatly impacts all areas of the university. We are looking at potential options to mitigate this pension liability exposure.”
Jackson said Murray State is paying 73.42% more in KERS pension costs than it was in 2009, a figure that is not sustainable.
Bevin’s administration has created a new pension bill, one he said has been “thoroughly vetted prior to the special session.”
The bill is expected to provide universities like Murray State and other quasi-agencies with a safe and certain future.
Later this week, a proclamation will be issued in accordance with Section 80 of the Kentucky Constitution.
