| Last Action | received in House |
|---|---|
| Title | AN ACT relating to retirement. |
| Bill Documents |
Bill
|
| Impact Statements |
Actuarial Analysis
Local Mandate |
| Bill Request Number | 340 |
| Sponsors | M. Cherry, J. Wayne |
| Summary of Original Version | Amend KRS 11A.010 to require that the Kentucky Teachers' Retirement System board of trustees and members of the Judicial Form Retirement System who are not subject to legislative or judicial branch code of ethics shall be subject to the executive branch code of ethics; amend KRS 21.440 to require that the audit of the Judicial Form Retirement System shall be performed by the Auditor of Public Accounts at least once every five years and require the system to pay all costs of the audit; amend KRS 21.530 to prohibit members of the Judicial Form Retirement System from serving more than three consecutive terms of office on the board and prohibit the board chairman from serving more than six consecutive years as chairman; amend KRS 21.540 to prohibit assets of the Judicial Form Retirement System from being used to pay placement agents, as defined by that section; require the Judicial Form Retirement System to make system expenditures and employee salaries available on a Web site; establish conflict-of-interest provisions applicable to trustees and employees of the Kentucky Judicial Form Retirement System; amend KRS 61.645 to apply the term limits applicable to elected trustees of the Kentucky Retirement Systems board to appointed trustees; provide that terms served prior to July 1, 2011, shall be used to determine if a trustee has exceeded the term limits prescribed in this section; prohibit the chair of the Kentucky Retirement Systems board from serving more than six consecutive years as chair; require the Kentucky Retirement Systems' audit to be completed by the Auditor of Public Accounts at least once every five years and require the systems to pay all costs of the audit; require the Kentucky Retirement Systems to make system expenditures and employee salaries available on a Web site; prohibit assets of the Kentucky Retirement Systems from being used to pay placement agents as defined by that section; amend KRS 61.655 to include employees of the Kentucky Retirement Systems; in conflict-of-interest provisions regarding their service to the systems; include additional restrictions to the conflict-of-interest provisions applicable to employees and trustees of the board; amend KRS 161.250 to provide that terms served prior to July 1, 2011, shall be used to determine if an elective trustee of the Kentucky Teachers' Retirement System has exceeded term limits established under the section; require the system to make system expenditures and employee salaries available on a Web site; amend KRS 161.340 to prohibit the chairperson of the Kentucky Teachers' Retirement System board from serving more than six consecutive years as chairperson; amend KRS 161.370 to require the Kentucky Teachers' Retirement System audit to be completed by the Auditor of Public Accounts at least once every five years and require the system to pay all costs of the audit; amend KRS 161.430 to prohibit assets of the Kentucky Teachers' Retirement System from being used to pay placement agents as defined by that section; amend KRS 161.460 to include additional restrictions to the conflict-of-interest provisions applicable to employees and trustees of the Kentucky Teachers' Retirement System; provide in noncodified sections, that trustees of the Kentucky Retirement Systems and Kentucky Teachers' Retirement System boards who are serving more than three four-year terms on the effective date of this Act shall be removed from office; trustees of the Judicial Form Retirement System who are serving more than the prescribed term limits on the effective date of this Act are allowed to complete their remaining term of office; the ban on placement agents applies to contracts established or renewed on or after July 1, 2011; that terms of office served prior to the effective date of this Act as board chair, chairman, or chairperson shall be used to determine if a current chair, chairman, or chairperson of the Kentucky Retirement Systems, Kentucky Teachers' Retirement System, or Judicial Form Retirement System board has exceeded the prescribed term limits. |
| Index Headings of Original Version |
General Assembly - Judicial Form Retirement System, board term limits and restrictions Judges and Court Commissioners - Judicial Form Retirement System, board term limits and restrictions Public Officers and Employees - State-administered retirement systems, board term limits and restrictions Retirement and Pensions - State-administered retirement systems, ban on placement agents Retirement and Pensions - State-administered retirement systems, board term limits and restrictions Retirement and Pensions - State-administered retirement systems, conflicts of interest for board and system employees Retirement and Pensions - State-administered retirement systems, require state auditor to perform audit every 5 years State Agencies - Kentucky Retirement Systems, board term limits and restrictions Actuarial Analysis - State-administered retirement systems, require state auditor to perform audit every 5 years Local Mandate - State-administered retirement systems, board term limits and restrictions |
| Proposed Amendments |
House Committee Substitute 1 Senate Committee Substitute 1 |
| Votes | Vote History |
| 02/14/11 |
|
|---|---|
| 02/15/11 |
|
| 02/16/11 |
|
| 02/17/11 |
|
| 02/18/11 |
|
| 02/22/11 |
|
| 02/23/11 |
|
| 02/24/11 |
|
| 02/28/11 |
|
| 03/01/11 |
|
| 03/03/11 |
|
| 03/04/11 |
|
| Amendment | House Committee Substitute 1 |
|---|---|
| Impact Statements |
Actuarial Analysis
Local Mandate |
| Summary | Retain original provisions except to delete measures affecting the Judicial Form Retirement System, the Kentucky Retirement Systems, and the Kentucky Teachers' Retirement System that would affect board term limits, implement board chair term limits, expand or establish conflicts of interest requirements for board members and employees of the board; require the Auditor of Public Accounts to conduct the system or systems financial audit. |
| Index Headings |
General Assembly - Judicial Form Retirement System, board term limits and restrictions Judges and Court Commissioners - Judicial Form Retirement System, board term limits and restrictions Public Officers and Employees - State-administered retirement systems, board term limits and restrictions Retirement and Pensions - State-administered retirement systems, ban on placement agents Retirement and Pensions - State-administered retirement systems, board term limits and restrictions Retirement and Pensions - State-administered retirement systems, conflicts of interest for board and system employees Retirement and Pensions - State-administered retirement systems, require state auditor to perform audit every 5 years State Agencies - Kentucky Retirement Systems, board term limits and restrictions Actuarial Analysis - State-administered retirement systems, require state auditor to perform audit every 5 years Local Mandate - State-administered retirement systems, board term limits and restrictions |
| Amendment | Senate Committee Substitute 1 |
|---|---|
| Impact Statements |
Actuarial Analysis
Local Mandate |
| Summary | Retain original provisions; Create a new section of KRS 21.345 to 21.580 to close the Legislators' Retirement Plan and the Judicial Retirement Plan to new members effective July 1, 2012, and to prohibit legislators and judges who initially take office on or after the effective date of this Act from participating in a retirement system for their service as a legislator or judge if the individual is retired and receiving a benefit from a state-administered retirement system; create a new section of KRS 21.345 to 21.580 to allow members of the Legislators' Retirement Plan and the Judicial Retirement Plan with less than five years of service to transfer their membership and account balance to the Public Employees Retirement System subject to a favorable private letter ruling; create a new section of KRS 61.510 to 61.705 to close the Kentucky Employees Retirement System, the County Employees Retirement System, and the State Police Retirement System to new members effective July 1, 2012, and to prohibit retired members of other state-administered retirement systems from contributing to these systems or the Public Employees Retirement System if they are reemployed on or after the effective date of this Act; create a new section of KRS 61.510 to 61.705 to allow members of the Kentucky Employees Retirement System, County Employees Retirement System, and the State Police Retirement System, with less than five years of service to transfer their membership and account balance to the Public Employees Retirement System subject to a favorable private letter ruling; create KRS Chapter 61A to establish the Public Employees Retirement System, a defined contribution plan administered by the board of the Kentucky Retirement Systems for new employees hired on or after July 1, 2012, by a participating agency of the retirement systems closed under the provisions of this Act; establish administrative requirements of the Public Employees Retirement System and authorize the board to establish or amend existing plans or to contract with the Kentucky Deferred Compensation Authority for administration of the plans; establish eligibility for membership in the Public Employees Retirement System; provide that individual agencies may establish additional defined contributions with matching contributions for reemployed retirees not eligible to participate in the Public Employees Retirement System; establish matching employer contributions of 5% for non-hazardous employees and 8% for hazardous employees contributing to the Public Employees Retirement System and a six year vesting schedule for employer contributions; establish the State Treasurer as custodian of the Public Employees Retirement System; require that each employer shall contribute to the Public Employees Retirement System the amount that is otherwise contributed for employees still participating in the closed systems and to provide that the contributions shall be distributed to fund benefits and expenses of the Public Employees Retirement System and to pay off unfunded liabilities of the closed systems; cross-reference statutes pertaining to the Kentucky Employees Retirement System related to the Kentucky Retirement Systems board, investment committee, employer duties, confidentiality of member accounts, correction of errors in records, and statements made under oath; allow the General Assembly to suspend or reduce benefits provided under the Public Employees Retirement System; establish minimum line-of-duty disability and death benefits for members of the Public Employees Retirement Systems of $10,000 to the deceased members spouse, 25% of pay to the disabled member or to the deceased member's spouse, and 10% for each dependent child; require the systems to contract with a insurance company duly licensed in the state of Kentucky for administration of the line of duty disability and death plan; authorize the board to establish retiree health coverage for members and beneficiaries upon retirement or in-the-line-of-duty disablement or death and to establish a benefit of $10 per month for each year of service for non-hazardous employees and $15 per month for each year of service for hazardous employees; provide that health benefits are subject to approval of the 1% being paid on a pre-tax basis; amend KRS 6.515 and 21.370 to increase the cost of purchasing active duty military service to the full actuarial cost for members of the Legislators' Retirement Plan and the Judicial Retirement Plan; prohibit service purchases made on or after the effective date of this Act in the Legislators' Retirement Plan and the Judicial Retirement Plan from being used to vest for retiree health benefits; require service purchased on or after the effective date of this Act in the Legislators' Retirement Plan and the Judicial Retirement Plan to assume the earliest retirement date and cost of living adjustments in determining the appropriate actuarial cost; allow service in the Public Employees Retirement System to be used for determining eligibility for retirement in the Legislators' Retirement Plan but not the amount of benefits; amend KRS 6.525 to prohibit salary earned in another state administered system from being used to determine benefits in the Legislators' Retirement Plan if the member does not have service in the other state-administered retirement systems prior to the effective date of this Act; amend KRS 61.645 to provide a process for members of the Public Employees Retirement System to vote for existing elected trustees of the Kentucky Retirement Systems board and to make conforming changes; to apply the term limits applicable to elected trustees of the Kentucky Retirement Systems board to appointed trustees; provide that terms served prior to July 1, 2011, shall be used to determine if a trustee has exceeded the term limits prescribed in this section; prohibit the chair of the Kentucky Retirement Systems board from serving more than six consecutive years as chair; require the Kentucky Retirement Systems' audit to be completed by the Auditor of Public Accounts at least once every five years and require the systems to pay all costs of the audit; amend KRS 61.650 to establish the board of the Kentucky Retirement Systems as trustee of the Public Employees Retirement System; amend KRS 61.675 to establish employer reporting requirements for the Public Employees Retirement System; amend KRS 61.680 and 161.607 to allow service in the Public Employees Retirement System to be used for determining eligibility for retirement but not the amount of benefits; amend KRS 16.520, 16.645, 61.525, 61.645, 61.650, 61.675, 78.540, and 78.545 to conform; amend KRS 61.565 to require the Kentucky Retirement Systems board of trustees to set the CERS employer contribution rates for the pension fund at 85% of the actuarially required contribution plus 1% of payroll; amend the current ten year phase-in to the full actuarially required contribution for retiree health contributions for CERS to set 85% of the actuarially required contribution as the new end target; restrict the CERS board from modifying amortization methods and periods for financing the unfunded liability as a result of the plan being closed to new members; restrict the CERS board from modifying the discount rate assumption for determining the retiree health contribution due to the 85% funding target or due to the plan being closed; amend KRS 21.440 to require that the audit of the Judicial Form Retirement System shall be performed by the Auditor of Public Accounts at least once every five years and require the system to pay all costs of the audit; amend KRS 21.530 to prohibit members of the Judicial Form Retirement System from serving more than three consecutive terms of office on the board and prohibit the board chairman from serving more than six consecutive years as chairman; amend KRS 21.540 to establish conflict-of-interest provisions applicable to trustees and employees of the Kentucky Judicial Form Retirement System; amend KRS 61.655 to include employees of the Kentucky Retirement Systems in conflict-of-interest provisions regarding their service to the systems and to include additional restrictions to the conflict-of-interest provisions; amend KRS 161.250 to provide that terms served prior to July 1, 2011, shall be used to determine if an elective trustee of the Kentucky Teachers' Retirement System has exceeded term limits established under the section; amend KRS 161.340 to prohibit the chairperson of the Kentucky Teachers' Retirement System board from serving more than six consecutive years as chairperson; amend KRS 161.370 to require the Kentucky Teachers' Retirement System audit to be completed by the Auditor of Public Accounts at least once every five years and require the system to pay all costs of the audit; amend KRS 161.460 to include additional restrictions to the conflict-of-interest provisions applicable to employees and trustees of the Kentucky Teachers' Retirement System; provide in noncodified sections, that trustees of the Kentucky Retirement Systems and Kentucky Teachers' Retirement System boards who are serving more than three four-year terms on the effective date of this Act shall be removed from office; trustees of the Judicial Form Retirement System who are serving more than the prescribed term limits on the effective date of this Act are allowed to complete their remaining term of office; the ban on placement agents applies to contracts established or renewed on or after July 1, 2011; that terms of office served prior to the effective date of this Act as board chair, chairman, or chairperson shall be used to determine if a current chair, chairman, or chairperson of the Kentucky Retirement Systems, Kentucky Teachers' Retirement System, or Judicial Form Retirement System board has exceeded the prescribed term limits; require the board of the Public Employees Retirement System to provide an update on the plan, including any legal issues involving state or federal law, to the Interim Joint Committee on State Government no later than October 31, 2011. |
| Index Headings |
General Assembly - Judicial Form Retirement System, board term limits and restrictions Judges and Court Commissioners - Judicial Form Retirement System, board term limits and restrictions Public Officers and Employees - State-administered retirement systems, board term limits and restrictions Retirement and Pensions - State-administered retirement systems, ban on placement agents Retirement and Pensions - State-administered retirement systems, board term limits and restrictions Retirement and Pensions - State-administered retirement systems, conflicts of interest for board and system employees Retirement and Pensions - State-administered retirement systems, require state auditor to perform audit every 5 years State Agencies - Kentucky Retirement Systems, board term limits and restrictions Actuarial Analysis - State-administered retirement systems, require state auditor to perform audit every 5 years Local Mandate - State-administered retirement systems, board term limits and restrictions |
Last updated: 1/16/2019 3:43 PM (EST)