US - The under funding of Kentucky's public pension system should immediately start to ease after the state governor signed a reform bill last week.
Steve Beshear, Kentucky governor said: "In signing House Bill one today, we have taken a giant step toward placing our pension systems on a sound financial basis by reducing out -of-control costs and setting target dates for the state to fully fund its share of the pension system."
The governor had also established a working group to address pension reform issues. The group was tasked to come back with recommendations at the beginning of November which could be considered in the 2009 legislative session.
Beshear continued: "The work we face in coming months does not negate the success of what we, together, have accomplished this week.
"The passage of House Bill one required cooperation that transcended party lines, legislative chambers and the separate branches of government. It required respect, open dialogue and a focus on the public good, not partisan politics," he concluded.
At the beginning of June, commentators said political game-playing could stand in the way of Kentucky's pension recovery, as the issue continued to be debated by the state legislature.
It has been claimed measures that could be agreed at a 23 June special meeting may not go far enough to begin repairing the state's retirement system deficit of over 40% (www.globalpensions.com 13 June ).
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