Ky. governor signs pension reform legislation

FRANKFORT, Ky. -- Gov. Steve Beshear has signed legislation intended to shore up Kentucky's financially troubled pension plan for government retirees.

The legislation would provide nearly $100 million a year to make the state's required contribution to the pension plans of state government employees. It also would create a 401(k)-like retirement plan for new employees in an effort to protect the pension plans of current employees and retirees.

Beshear credited "a renewed spirit of cooperation" between himself and lawmakers for reaching an agreement on pensions, which he called the most pressing problem facing Kentucky.

In a statement Thursday, Beshear thanked legislative leaders for their efforts to forge an agreement that allows the state to fully honor commitments to current state workers and retirees.