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Gov. Matt Bevin signs pension relief bill into law

House Bill 1 was the governor's preferred plan to address pension issues for quasi state agencies

FRANKFORT, Ky. (WHAS11) -- A contentious day at the Kentucky Capitol included accusations and criticism and ended with a new law on the books.

But there are a lot of questions about what happens now that the quasi state agency pension relief bill has passed and been signed by Governor Matt Bevin.

House Bill 1 had an emergency clause, which means it became law as soon as Governor Bevin put pen to paper. He had words for a Louisville lawmaker who fought against the pension relief plan for quasi-governmental agencies.

“The fact that a sitting state senator would say something so irresponsible, that's childish actually, to be that kind of fear mongerer and to say that they're coming for you next, what are they afraid that someone is going to save their pension too? What is it that they're afraid of?” Bevin said.

That response followed a question about what had turned into a tense debate in the Senate as Minority Leader Morgan McGarvey, a Louisville Democrat, argued against the plan.

“Those employees who are in the other systems, I say they're coming for you next. I urge members to vote no,” McGarvey said.

McGarvey said this fix fixed nothing because it did not fund the pensions of agencies like regional universities, health departments and rape crisis centers and would lead to ending state retirement plans as we know them.

One of Leader McGarvey's closest friends in the Senate, Middletown Republican Julie Raque Adams, was not the first to confront the comments, but her words appeared to target the minority leader, calling his rhetoric reckless and untrue.

“There is not one person that I serve with on this floor who believes that we need to punish public employees, it's just the opposite,” Adams said. “We’re trying to stabilize a financial environment so that people can keep their jobs and keep their retirements.”

Steve Shannon heads regional mental health centers impacted by the changes and said today’s actions could save jobs and provide stability.

“It allows people to remain, one, for the next year. They'll be much more comfortable where they're at and then they'll see what the plan is going forward, so I think there will be stability at the centers because of the opportunities we have today with the passage of House Bill 1,” Shannon said.

Attorney General Andy Beshear released a statement making it appear he does not plan to sue, instead writing, in part, that he is reaching out to the agencies to ensure they can be protected in the short term while offering "a real fix in the future.”

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