| Last Action | to State Government (H) |
|---|---|
| Title | AN ACT relating to retirement. |
| Bill Documents |
Bill
|
| Impact Statements |
Actuarial Analysis
Local Mandate |
| Bill Request Number | 330 |
| Sponsors | D. Thayer, D. Williams, J. Bowen, A. Kerr, J. Westwood |
| Summary of Original Version | 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 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 5 years of service to transfer their membership and account balance to the Public Employees Retirement System; 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 5 years of service to transfer their membership and account balance to the Public Employees Retirement System; 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 by a participating agency in 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 vesting rules 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 25% of pay to the member or deceased member's spouse and 10% for each dependent child and require the systems to contract with a insurance company duly licensed in the state of Kentucky for administration; 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 non-hazardous employees and $15 per month for hazardous employees; 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; prohibitservice 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 and 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; 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; 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 of Original Version |
General Assembly - Legislators' Retirement Plan, close of plan to new entrants and provision of new system General Assembly - Legislators' Retirement Plan, cost of purchasing service credit General Assembly - Legislators' Retirement Plan, restriction of account consolidation with other state systems Public Officers and Employees - Retirement, close of KERS, CERS, SPRS, LRP, and JRP to new members Public Officers and Employees - Retirement, prohibition of second retirement account in KERS, CERS, SPRS, LRP, and JRP Public Officers and Employees - Retirement, restriction of account consolidation in the Legislators' Retirement Plan Retirement and Pensions - Judicial Form Retirement System, close of plan to new entrants and provision of new system Retirement and Pensions - Judicial Form Retirement System, cost of purchasing service credit Retirement and Pensions - Kentucky Retirement Systems, close of plan to new entrants and provision of new system Retirement and Pensions - Legislators' Retirement Plan, restriction of account consolidation with other state systems Retirement and Pensions - Reemployment after retirement, prohibition of second retirement account Actuarial Analysis - Reemployment after retirement, prohibition of second retirement account Local Mandate - Reemployment after retirement, prohibition of second retirement account |
| Proposed Amendments |
Senate Committee Substitute 1 Senate Committee Substitute 2 Senate Committee Amendment 1 |
| Votes | Vote History |
| 01/04/11 |
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|---|---|
| 01/05/11 |
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| 01/07/11 |
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| 02/01/11 |
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| 02/02/11 |
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| 02/11/11 |
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| 02/14/11 |
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| 02/15/11 |
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| Amendment | Senate Committee Substitute 1 |
|---|---|
| Impact Statements |
Actuarial Analysis
Local Mandate |
| Summary | Retain original provisions; amend Sections 2 and 4 to provide the election to participate in the Public Employees Retirement System shall be subject to approval by the Internal Revenue Code, to void the section if the Internal Revenue Service denies approval of the election, and requires the systems to promulgate administrative regulations to carry out the provisions of the Section; amend Section 7 to allow the Kentucky Retirement Systems to establish a group trust under Federal law and regulatory authority to co-invest assets of the Public Employees Retirement System and other systems administered by Kentucky Retirement Systems, to require the systems to promulgate the plan document for the Public Employees Retirement System by administrative regulation, and to make technical amendments to the Public Employees Retirement System; amend Section 14 to replace line of duty disability and death benefits for new hires under the Public Employees Retirement System with optional life and disability insurance that is paid by the employee or the employer and to allow the systems to procure coverage through the Personnel Cabinet subject to Cabinet approval; amend Section 15 to provide that new hire benefits under the Public Employees Retirement System shall be subject to approval by the Internal Revenue Code of the 1% employee contribution for health being paid on a pre-tax basis by members of the Public Employees Retirement System, to void the section if the Internal Revenue Service denies approval of pre-tax contributions, requires the systems to promulgate administrative regulations to carry out the provisions of the Section, and removes insurance contribution for line of duty disability and death benefits to conform with changes in Section 14; amend Section 1, 4, 5, 11 to conform and to make technical amendments. |
| Index Headings |
General Assembly - Legislators' Retirement Plan, close of plan to new entrants and provision of new system General Assembly - Legislators' Retirement Plan, cost of purchasing service credit General Assembly - Legislators' Retirement Plan, restriction of account consolidation with other state systems Public Officers and Employees - Retirement, close of KERS, CERS, SPRS, LRP, and JRP to new members Public Officers and Employees - Retirement, prohibition of second retirement account in KERS, CERS, SPRS, LRP, and JRP Public Officers and Employees - Retirement, restriction of account consolidation in the Legislators' Retirement Plan Retirement and Pensions - Judicial Form Retirement System, close of plan to new entrants and provision of new system Retirement and Pensions - Judicial Form Retirement System, cost of purchasing service credit Retirement and Pensions - Kentucky Retirement Systems, close of plan to new entrants and provision of new system Retirement and Pensions - Legislators' Retirement Plan, restriction of account consolidation with other state systems Retirement and Pensions - Reemployment after retirement, prohibition of second retirement account Actuarial Analysis - Reemployment after retirement, prohibition of second retirement account Local Mandate - Reemployment after retirement, prohibition of second retirement account |
| Amendment | Senate Committee Substitute 2 |
|---|---|
| Impact Statements | Actuarial Analysis |
| Summary | Retain original provisions except to remove amendments that would close the County Employees Retirement System to new members effective July 1, 2012; remove amendments that would have provided retirement coverage to new local government employees hired on or after July 1, 2012, through the newly created Public Employees Retirement System. |
| Index Headings |
General Assembly - Legislators' Retirement Plan, close of plan to new entrants and provision of new system General Assembly - Legislators' Retirement Plan, cost of purchasing service credit General Assembly - Legislators' Retirement Plan, restriction of account consolidation with other state systems Public Officers and Employees - Retirement, close of KERS, CERS, SPRS, LRP, and JRP to new members Public Officers and Employees - Retirement, prohibition of second retirement account in KERS, CERS, SPRS, LRP, and JRP Public Officers and Employees - Retirement, restriction of account consolidation in the Legislators' Retirement Plan Retirement and Pensions - Judicial Form Retirement System, close of plan to new entrants and provision of new system Retirement and Pensions - Judicial Form Retirement System, cost of purchasing service credit Retirement and Pensions - Kentucky Retirement Systems, close of plan to new entrants and provision of new system Retirement and Pensions - Legislators' Retirement Plan, restriction of account consolidation with other state systems Retirement and Pensions - Reemployment after retirement, prohibition of second retirement account Actuarial Analysis - Reemployment after retirement, prohibition of second retirement account Local Mandate - Reemployment after retirement, prohibition of second retirement account |
| Amendment | Senate Committee Amendment 1 |
|---|---|
| Impact Statements |
Actuarial Analysis
Local Mandate |
| Sponsor | D. Thayer |
| Summary | Retain original provisions; close the County Employees Retirement System (CERS) to new members effective July 1, 2012, and provide participation in the newly created Public Employees Retirement System in lieu thereof; 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. |
| Index Headings |
General Assembly - Legislators' Retirement Plan, close of plan to new entrants and provision of new system General Assembly - Legislators' Retirement Plan, cost of purchasing service credit General Assembly - Legislators' Retirement Plan, restriction of account consolidation with other state systems Public Officers and Employees - Retirement, close of KERS, CERS, SPRS, LRP, and JRP to new members Public Officers and Employees - Retirement, prohibition of second retirement account in KERS, CERS, SPRS, LRP, and JRP Public Officers and Employees - Retirement, restriction of account consolidation in the Legislators' Retirement Plan Retirement and Pensions - Judicial Form Retirement System, close of plan to new entrants and provision of new system Retirement and Pensions - Judicial Form Retirement System, cost of purchasing service credit Retirement and Pensions - Kentucky Retirement Systems, close of plan to new entrants and provision of new system Retirement and Pensions - Legislators' Retirement Plan, restriction of account consolidation with other state systems Retirement and Pensions - Reemployment after retirement, prohibition of second retirement account Actuarial Analysis - Reemployment after retirement, prohibition of second retirement account Local Mandate - Reemployment after retirement, prohibition of second retirement account |
Last updated: 1/16/2019 3:43 PM (EST)