HB 434/FN/AA (BR 1452) - F. Rasche
AN ACT relating to retired teachers and declaring an emergency.
Amend KRS 161.220 to continue KTRS membership for former Department of Adult Education employees; exclude accountability rewards program compensation from definition of “annual compensation"; amend definition of “last annual compensation”; amend KRS 161.260 to reference statute permitting persons providing substitute and part-time services to vote in retirement board of trustees elections; amend KRS 161.340 to make technical correction; amend KRS 161.420 to remove archaic statutory references; amend KRS 161.430 to make gender correction; amend KRS 161.480 to specify beneficiary designations for the accounts of non-retired members and provide guidelines in the event of divorce or failure to name a beneficiary, and provide that this section shall not apply to the accounts of members who have retired or to the life insurance benefit; amend KRS 161.507 to remove archaic reference; amend KRS 161.515 to clarify that only full-time out-of-state teaching service may be purchased, and provide that effective July 1, 2005, out-of-state teaching, Kentucky Peace Corps, and federal Peace Corps service shall be purchasable only at full actuarial cost; amend KRS 161.520 to specify that benefits are available when the surviving widow or widower is named as the primary beneficiary; amend KRS 161.525 to specify that benefits are available when the surviving widow or widower or legal dependent is named as the primary beneficiary; amend KRS 161.545 to provide that non-current leaves of absence may be purchased for reasons of health as defined under the Federal Family Medical Leave Act, and provide alternative forms of proof that non-current leaves of absence were granted; amend KRS 161.550 to require an employer medical insurance fund stabilization contribution; amend KRS 161.553 to update funding schedule; amend KRS 161.597 to remove archaic provisions, and provide that, subject to IRS approval, members may purchase service credit by payroll deduction on a tax-deferred basis; amend KRS 161.600 to provide that KRS retirees with KTRS reciprocity accounts may retire subject to KRS 61.559(2)(c) with actuarial discount applied; amend KRS 161.605 to reduce percentage of retirees an employer may hire from 4% to 3% of employer’s workforce, provide that local school districts shall make requests to exceed the quota no sooner than two weeks after the start of the school year, provide that second accounts shall not entitle members to duplicate adult handicapped child benefits, permit cost-of-living allowances to be applied each July 1 to members’ last annual compensation no matter when it was earned, provide alternative separation-from-service requirements, provide a critical shortage program, provide that KTRS may reduce a member’s retirement allowance on a dollar-for-dollar basis for each dollar that a retired member earns in employment exceeding 100 days, provide that any retired member may be employed by a university or community college for 12 teaching hours in a teaching position or 100 days in a non-teaching position, specify that subsections (1) through (9) of the section do not apply to retired members returning to work for a university or community college, provide that KTRS may reduce a member’s retirement allowance on a dollar-for-dollar basis for each dollar that a retired member earns in employment exceeding 100 days or 12 teaching hours, and provide that the board shall adopt a methodology for a pro rata apportionment of days and hours for retired members who return to work in both teaching and non-teaching positions; amend KRS 161.612 to specify that the provisions for substitute and part-time employment do not apply to universities or community colleges, provide that the board may adopt a pro rata methodology to determine the annual compensation of members providing substitute and part-time services to determine disability benefits, provide conditions under which members providing substitute and part-time services may vote in retirement board elections, and provide that instructional assistants who are used on an emergency basis as substitute teachers for 5 or fewer days in a fiscal year shall not be considered members of KTRS for those 5 or fewer days; amend KRS 161.614 to provide that a member may have court-ordered service credited to his or her account only after the retirement system has received contributions on the full compensation normally earned in the position which is the subject of the litigation, and make technical correction; amend KRS 161.620 to provide reference to basic retirement allowance as a base in calculating retirement allowance; change reference to “last annual compensation” to “last yearly salary” and provide definition, and permit ad hoc cost of living allowances to retirees; amend KRS 161.630 to clarify language permitting changing retirement options; amend KRS 161.640 to provide conditions under which members who are customarily employed under 12-month contracts may retire prior to July 1; amend KRS 161.650 to specify beneficiary designations for refund of retirees’ account balances and provide guidelines for the event of divorce, naming trusts as beneficiaries and failure to designate a beneficiary; amend KRS 161.655 to specify beneficiary designations for refund of retirees’ account balances and provide guidelines for the event of divorce, naming trusts as beneficiaries and failure to designate a beneficiary; amend KRS 161.680 to change reference to “employee or beneficiary” to “individual”; Effective July 1, 2004; EMERGENCY.
HB 434 - AMENDMENTS
HCS (1/FN/AA) - Retain original provisions except provide that a university employee who originally elected to participate in the optional retirement plan may irrevocably elect one time during his or her lifetime to change his or her election and to prospectively participate in the Kentucky Teachers' Retirement System; make technical correction to the cost of living monetary chart; and delete ambiguous language.
HCS (2/FN/AA) - Retain provisions of house committee substitute; clarify that the state makes the medical insurance fund stabilization contribution; allow department to hire retired members without compensation limits if necessary to fill critical shortage areas in the schools it operates; reduce benefit improvements for 2004 - 2006.
SCS/AA - Retain original provisions except delete ad hoc cost of living allowances to retirees.
Feb 3-introduced in House
Feb 4-to Education (H); posted in committee
Feb 11-reported favorably, 1st reading, to Calendar with Committee Substitute
Feb 12-2nd reading, to Rules; recommitted to Appropriations and Revenue (H)
Feb 20-posted in committee
Mar 2-reported favorably, to Rules with Committee Substitute (2)
Mar 3-posted for passage in the Regular Orders of the Day for Thursday, March 4, 2004
Mar 4-3rd reading, passed 94-0 with Committee Substitute (2)
Mar 5-received in Senate
Mar 10-to State and Local Government (S)
Mar 16-reported favorably, 1st reading, to Calendar
Mar 17-2nd reading, to Rules
Mar 24-recommitted to State and Local Government (S)
Mar 25-reported favorably, to Rules with Committee Substitute as a Consent Bill ; posted for passage in the Regular Orders of the Day for Thursday, March 26, 2004; 3rd reading, passed 36-0 with Committee Substitute ; received in House; to Rules (H)
Mar 29-placed in the Orders of the Day; House concurred in Senate Committee Substitute ; passed 90-1; enrolled, signed by Speaker of the House; delivered to Governor
Apr 9-signed by Governor (Acts ch. 121)
