Why Some Public Pensions Could Soon Look Much Worse A Governing analysis shows how a new accounting rule dramatically changes some plans' pension liabilities and will likely force many states to finally face their obligations. March 13, 2015 • Standing in a crowded hallway outside a committee room in the Kentucky State Capitol, House Speaker Greg Stumbo is surrounded by thankful teachers and skeptical reporters. It is mid-February and the committee has just approved his proposal to borrow $3.3 billion to shore up the state’s teacher retirement system. Stumbo has argued that current, historically low interest rates are a window of opportunity to solidify funding for the troubled system. But, notes one reporter, borrowing $3.3 billion would be a challenge since it would be the largest bond offering in Kentucky’s history.