FRANKFORT, Ky. (AP) -- A credit rating agency says Kentucky's pension law passed in a recent special legislative session is a "negative" for the state's credit rating.
The Moody's report rates the law as "credit negative" because it pushes pension costs into the future. It says the law raises the likelihood the state will take responsibility for a greater share of unfunded pension liabilities.
Gov. Matt Bevin said Monday he's not surprised by the rating. He says the state has considerable work ahead to shore up public-pension systems.
The law is aimed at regional universities and quasi-government agencies facing massive increases in pension costs. It allows the agencies to decide next year whether to stay in the state retirement system -- and face much higher pension contributions rates -- or agree to leave.