KY Negotiators Approve Plan to Shore up Pensions

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FRANKFORT, Ky. (AP) -- House and Senate negotiators have reached agreement on a proposal intended to restore solvency to Kentucky's pension plans for government retirees.

The proposal is expected to get floor votes later Tuesday.

Gov. Steve Beshear and legislative leaders have been trying to find sources of revenue to shore up pensions that are palatable enough to lawmakers to win passage in the House and Senate.

The latest proposal would provide close to the $100 million a year needed to make the state's required contribution to the pension plans.

The proposal also includes creation of a 401(k)-like retirement plan for new employees. The Republican-controlled Senate had pushed for that provision. The Democratic-led House agreed to it despite opposition from employee groups.