House bill 358 would let about 118 quasi-governmental entities leave the struggling pension system without paying what they owe. An analysis by the retirement system said it could cost the beleaguered system as much as $1 billion.
Republican Sen. Chris McDaniel calls it the best of the worst options. He said these agencies can't afford to make increased pension contributions for their employees. Department of Public Health Commissioner Jeffrey Howard said 63 public health departments would have to close over the next two years without changes.
Some retirees are worried the changes would put their financial future in peril by weakening the system.
