Governor Steve Beshear says he is pleased with a decision by the Kentucky Retirement Systems to appeal a recent ruling that would allow quasi-governmental agencies to withdraw from the beleaguered public pension system.
Earlier this month a federal judge ruled that groups like the mental health nonprofit Seven Counties Services, which is currently filing for bankruptcy as a result of its pension debt, could exit KRS because they aren’t government agencies.
Beshear says that if the decision is upheld, it would create millions of dollars in new unfunded pension liabilities.
“It is a very dangerous ruling, in terms of the financial stability of our pension system. And so I want to make sure that that gets a full hearing and hopefully will get overturned on appeal,” said Beshear
The Kentucky Employee Retirement System’s total unfunded liability is about $17 billion.