Kentucky Retirement Systems Loses Motion - Bankruptcy Case Will Proceed... for Now

For those interested in breaking pension news, though technically off-QDRO-topic: 

On November 8, 2013, Federal Bankruptcy Court Judge Joan Lloyd of the Western District of Kentucky, Louisville Division, issued dual opinions that resulted in the Seven Counties Services bankruptcy case being able to proceed (for the time-being, anyway). Seven Counties Services is a mental health agency serving counties in the Louisville-area. The agency filed for bankruptcy protection this past April in an effort to avoid pension obligations to its employees. 

Judge Lloyd determined that KRS and KERS would not enjoy sovereign immunity from suit.  In her opinion, she found that KRS and KERS voluntarily invoked the jurisdiction of her court by actively participating in the bankruptcy proceedings and companion adversary actions.  Judge Lloyd further ruled that certain issues were not ripe and instead needed to be more fully developed at trial.  The critical issues concern whether KERS is defined by ERISA as a governmental plan, and therefore, whether Seven Counties is an eligible participant or whether it cannot be compelled to participate.

[CLICK HERE FOR OPINION RE: KRS/KERS MOTION TO DISMISS]

[CLICK HERE FOR OPINION RE: SEVEN COUNTIES MOTION TO DISMISS]