diff --git a/NEWS b/NEWS
index 0fa8aabfa..6eb121f68 100644
--- a/NEWS
+++ b/NEWS
@@ -4,6 +4,16 @@ For full details, see the git log at:
 
 Any uppercase BUG_* names are modernish shell bug IDs.
 
+2020-06-04:
+
+- Fix BUG_KBGPID: the $! special parameter was not set if a background job
+  (somecommand &) or co-process (somecommand |&) was launched as the only
+  command within a braces block with an attached redirection, for example:
+	{
+		somecommand &
+	} >&2
+  With the bug, $! was unchanged; now it contains the PID of somecommand.
+
 2020-05-31:
 
 - Fix a bug in autoloading functions. Directories in the path search list
diff --git a/src/cmd/ksh93/include/version.h b/src/cmd/ksh93/include/version.h
index ffbb19f82..be7f88eba 100644
--- a/src/cmd/ksh93/include/version.h
+++ b/src/cmd/ksh93/include/version.h
@@ -17,4 +17,4 @@
 *                  David Korn <dgk@research.att.com>                   *
 *                                                                      *
 ***********************************************************************/
-#define SH_RELEASE	"93u+m 2020-05-31"
+#define SH_RELEASE	"93u+m 2020-06-04"
diff --git a/src/cmd/ksh93/sh/parse.c b/src/cmd/ksh93/sh/parse.c
index 617504aff..7f259bc86 100644
--- a/src/cmd/ksh93/sh/parse.c
+++ b/src/cmd/ksh93/sh/parse.c
@@ -1360,11 +1360,10 @@ static Shnode_t	*item(Lex_t *lexp,int flag)
 		return(t);
 	}
 	sh_lex(lexp);
+	/* redirection(s) following a compound command */
 	if(io=inout(lexp,io,0))
 	{
-		if((tok=t->tre.tretyp&COMMSK) != TFORK)
-			tok = TSETIO;
-		t=makeparent(lexp,tok,t);
+		t=makeparent(lexp,TSETIO,t);
 		t->tre.treio=io;
 	}
 done:
diff --git a/src/cmd/ksh93/tests/variables.sh b/src/cmd/ksh93/tests/variables.sh
index 8627266bf..bf34b514e 100755
--- a/src/cmd/ksh93/tests/variables.sh
+++ b/src/cmd/ksh93/tests/variables.sh
@@ -558,6 +558,15 @@ set -- $x
 : & pid=$!
 ( : & )
 [[ $pid == $! ]] || err_exit '$! value not preserved across subshells'
+
+pid=$!
+{ : & } >&2
+[[ $pid == $! ]] && err_exit '$! value not updated after bg job in braces+redir'
+
+pid=$!
+{ : |& } >&2
+[[ $pid == $! ]] && err_exit '$! value not updated after co-process in braces+redir'
+
 unset foo
 typeset -A foo
 function foo.set