| Last Action | returned to State Government (H) |
|---|---|
| Title | AN ACT relating to public agencies. |
| Bill Documents |
Bill
|
| Impact Statements | Actuarial Analysis |
| Bill Request Number | 380 |
| Sponsor | C. McDaniel |
| Summary of Original Version | Amend KRS 61.520 to provide that certain employers participating in the Kentucky Employees Retirement System (KERS) may elect to voluntarily cease participation in the system or shall be required to involuntarily cease participation in the system in the event the board of trustees has determined the employer is no longer eligible to participate in the system; establish requirements for voluntary and involuntary cessation of participation by the employer, including requiring any employer voluntarily ceasing participation to adopt a resolution to cease participation and submit the resolution the Kentucky Retirement Systems' board, requiring the cessation of participation to apply to all employees of the employer ceasing participation, requiring the employer to pay for an actuarial cost study to determine the cost to the employer for discontinuing participation, requiring an employer voluntarily ceasing participation to offer an alternative retirement plan to impacted employees, and requiring the employer to pay the system for the full actuarial cost of discontinuing participation either in a lump-sum payment or in installments under the terms established by the board; provide that employees hired after the employer ceases participation will not participate in KERS; provide that employees participating in the KERS with the employer ceasing participation will not earn benefits after the employer has ceased participation, but will be vested for those benefits accrued prior to the employer's cessation date; provide that the provisions shall not apply to Commonwealth's attorney offices, county attorney offices, local and district health departments governed by KRS Chapter 212, master commissioners, executive branch agencies whose employees are subject to KRS 18A.005 to 18A.20, state-administered retirement systems, employers in the legislative or judicial branch of Kentucky state government, or state-supported universities and community college systems, unless the agency is a nonstock nonprofit corporation established under KRS Chapter 273; amend KRS 61.510, 61.525, 61.543, and 61.560 to conform; amend KRS 210.440 to provide that the Cabinet for Health and Family Services may withdraw funds from a regional mental health board governed by this section for failure to pay employer contributions to KERS; clarify that the cabinet may withdraw recognition from a regional local mental health board as the local authority for the receipt of funds and the operation and administration of regional community programs for mental health if the board fails to pay employer contributions to KERS or files for bankruptcy; clarify that the cabinet may appoint a caretaker and make personnel changes deemed necessary if a regional mental health agency board fails to pay employer contributions to KERS or files for bankruptcy; provide severability clause. |
| Index Headings of Original Version |
Public Officers and Employees - Retirement, certain public agencies allowed to cease participation in KERS Retirement and Pensions - Kentucky Employees Retirement System, certain employers allowed to cease participation State Agencies - Cabinet for Health and Family Services, regional mental health boards, KERS State Agencies - Retirement, certain KERS agencies allowed to cease participation Actuarial Analysis - Retirement, certain KERS agencies allowed to cease participation |
| Proposed Amendments | Senate Committee Substitute 1 |
| Votes | Vote History |
| 03/06/14 |
|
|---|---|
| 03/11/14 |
|
| 03/19/14 |
|
| 03/20/14 |
|
| 03/21/14 |
|
| 03/24/14 |
|
| 03/25/14 |
|
| Amendment | Senate Committee Substitute 1 |
|---|---|
| Impact Statements | Actuarial Analysis |
| Summary | Retain original provisions except to make technical and clerical amendments and to remove language in KRS 61.520 that provided for the voluntary or involuntary cessation of participation of certain KERS agencies; create a new section of KRS 61.510 to 61.705 to provide that certain employers participating in the Kentucky Employees Retirement System (KERS) and the County Employees Retirement System (CERS) may elect to voluntarily cease participation in the system and that any agency may be required to involuntarily cease participation in KERS or CERS in the event the board of trustees has determined the employer is no longer eligible to participate in a governmental plan or has failed to comply with the provisions of KRS 61.510 to 61.705 or 78.510 to 78.852; establish requirements for voluntary and involuntary cessation of participation by the employer, including requiring any employer voluntarily ceasing participation to adopt a resolution to cease participation and submit the resolution the Kentucky Retirement Systems' board, requiring the cessation of participation to apply to all employees of the employer ceasing participation, requiring the employer to pay for an actuarial cost study to determine the cost to the employer for discontinuing participation, requiring an employer voluntarily ceasing participation to offer an alternative retirement plan to impacted employees, and requiring the employer to pay the system for the full actuarial cost of discontinuing participation either in a lump-sum payment or in installments under the terms established by the board; provide that the full actuarial cost shall not include those employees who elect to take a refund of their account balance within 60 days of the employer's cessation date; provide that the employer's full actuarial cost shall be fixed once the employer makes the lump-sum payment or first installment payment; provide that employees hired after the employer ceases participation will not participate in KERS or CERS for the ceased employer; provide that employees participating in the systems with the employer ceasing participation will not earn benefits after the employer has ceased participation, but will be vested for those benefits accrued prior to the employer's cessation date; provide that the voluntary cessation of participation provisions shall not apply to certain KERS employers including Commonwealth's attorney offices, county attorney offices, local and district health departments governed by KRS Chapter 212, master commissioners, property valuation administration offices, executive branch agencies whose employees are subject to KRS 18A.005 to 18A.200, state-administered retirement systems, employers in the legislative or judicial branch of Kentucky state government, or state-supported universities and community college systems, unless the agency is a nonstock nonprofit corporation established under KRS Chapter 273; provide that the voluntary cessation of participation provisions shall only apply to CERS employers who are nonstock nonprofit corporation established under KRS Chapter 273; amend KRS 78.530 to make conforming amendments and to remove provisions that allow a CERS agency whose participation has been terminated under KRS 78.535 to once again participate in CERS at a later date; amend KRS 78.535 to remove provisions regarding the termination of participation provisions in current law and to reference the cessation of participation provisions in Section 1 of this Act; amend KRS 78.540, 78.545, 78.610, and 78.615 to conform; amend KRS 95.520, 95.621, and 95.852 to remove provisions that allow an employee to regain participation in a closed city pension plan if the agency's participation has been terminated under KRS 78.535. |
| Index Headings |
Public Officers and Employees - Retirement, certain public agencies allowed to cease participation in KERS Retirement and Pensions - Kentucky Employees Retirement System, certain employers allowed to cease participation State Agencies - Cabinet for Health and Family Services, regional mental health boards, KERS State Agencies - Retirement, certain KERS agencies allowed to cease participation Actuarial Analysis - Retirement, certain KERS agencies allowed to cease participation |
Last updated: 8/27/2019 6:52 PM (EDT)