LOUISVILLE (WHAS11) – Kentucky’s Supreme Court ruled against the pension reform bill.
The decision to uphold a lower court’s ruling means Senate Bill 151 will not go into effect on Jan. 1.
The bill prompted thousands of teachers to protest at the state Capitol.
Kentucky has one of the worst funded public pension systems in the country. The state is at least $38 billion short of the money it needs to pay benefits over the next three decades.
In April, Republican Gov. Matt Bevin signed a law that made changes to the pension system that would mostly affect future hires. Thousands of teachers protested, forcing the closure of more than 30 school districts.
Democratic Attorney General Andy Beshear sued to block the law. On Thursday, the court ruled the law unconstitutional because the legislature didn't vote on it three times over three separate days as the state constitution requires.
Gov. Matt Bevin issued the following statement:
"Today's ruling by the Supreme Court is an unprecedented power gram by activist judges. By striking down SB 151 based on process, rather than merit, the Kentucky Supreme Court has chosen to take for itself the law-making power that the constitution grants to the legislature. This is very dangerous. In the long-term, this will erode the rule of law that is the foundation of our goverment, but more immediately, this will destroy the financial condition of Kentucky.
The greatest financial threat to the Commonwealth has now been made worse by Andy Beshear's self-serving, political lawsuit, and it places the retirement security of tens of thousands of our teachers and public employees at greater risk of failure. This overreach by the Supreme Court will force our state to deal with furhter credit downgrades and increased borrowing costs for cities, counties, and school districts. This is unacceptable. All options must remain on the table to solve this crisis, because without real structure reform, the pension system is o the fast track to failure."
Attorney General Andy Beshear released this statement:
“Today’s unanimous (7-0) ruling is a landmark win for every teacher, police officer, firefighter, social worker, EMS and all our hardworking public servants. It fully and finally voids the illegal cuts to their retirement, and clearly states that the governor and General Assembly violated the Constitution. The decision is also an important win for good government and transparency. It sends a message that the Constitution does not allow lawmakers to hide their actions. Because of today’s ruling, an 11-page sewer bill can never again be turned into a 291-page pension bill and passed in just six hours. It is my hope that moving forward the governor and General Assembly will start honoring the oath each elected official takes to support and follow the Constitution of the Commonwealth of Kentucky.”
Kentucky’s House Majority Leadership team released the following statement regarding the Supreme Court’s ruling on Senate Bill 151:
“The process deemed unconstitutional by the Supreme Court has been utilized for at least a half-century by both parties to pass critical legislation, and has never been challenged until now. The consequences of today’s unwise decision will be far-reaching – particularly for the separation of powers that lie at the heart of our system of government.
While the legislature would never presume to judge the manner in which the Court conducts judicial business, we are nonetheless bound by its decision, no matter how ill-advised. This unfortunate decision now subjects decades of good legislation to potential legal challenges, while revealing a complete and total lack of understanding for the separation of powers. It disrespects the hard work done by the people’s elected representatives and ignores the constitutional foundations of the three branches of government.
Further, Mason’s Manual of Legislative Procedure recognizes the General Assembly’s action on SB 151 as a constitutional action in every state, having been developed by the nation’s 99 legislative bodies and their legal counsel.
Because of this disappointing ruling, state employee retirement will continue to be the most insolvent pension system in America, and will serve as a drag on Kentucky’s entire economy. Senate Bill 151 was the first step in moving our pension systems toward a new day of solvency and health. Today’s decision puts retirement checks for hardworking public employees at risk, and is a major setback to the difficult work undertaken to reverse the indecision and inaction of the past two decades. Despite this, we are committed to leading in the effort to enact a solution for the critical situation that once again faces our Commonwealth.”
STATEMENT FROM HOUSE DEMOCRATIC LEADER ROCKY ADKINS, IN RESPONSE TO TODAY’S RULING STRIKING DOWN SENATE BILL 151:
“This ruling is a huge victory, and it re-affirms what I and other caucus members said in committee and on the floor when we called the House Republicans out of order and said they were breaking the law for the way they handled Senate Bill 151, the ‘sewer’ pension bill. We said that the legislative rules and processes should not be ignored, because that shuts out the very public we serve. This ruling also properly protects our teachers, public employees and their retirees throughout the commonwealth. Going forward, our caucus remains firm in believing two things: That we should maintain the bipartisan pension reforms passed in 2013 and fund them.”
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