| Last Action | signed by Governor (Acts, ch. 125) |
|---|---|
| Title | AN ACT relating to prospective retirement benefits and declaring an emergency. |
| Bill Documents |
Current/Final
Introduced |
| Impact Statements |
Actuarial Analysis
Local Mandate |
| Bill Request Number | 264 |
| Sponsor | C. McDaniel |
| Summary of Original Version | Create a new section of KRS 6.500 to 6.577 to provide that members of the Legislators' Retirement Plan who retire on or after January 1, 2018, shall be limited to a 10% growth in the creditable compensation earned during their last three years of service to the General Assembly or an employer participating in any of the other state-administered retirement systems, if that compensation is used to calculate their retirement benefits; provide that only creditable compensation earned on or after July 1, 2017, shall be subject to the creditable compensation growth limitations; exempt bona fide promotions or salary advancements from the compensation growth limitation; define "bona fide promotion or salary advancements" as a professional advancement in substantially the same line of work held by the member in the four years immediately prior to the three-year period or a change in employment position based upon training, education, or expertise; provide that the Judicial Form Retirement System shall refund contributions and interest on contributions for any reductions in creditable compensation; provide that the Judicial Form Retirement System shall determine what constitutes a bona fide promotion or salary advancement; create a new section of KRS 21.345 to 21.580 to provide that members of the Judicial Retirement Plan who retire on or after January 1, 2018, shall be limited to a 10% annual growth in the creditable compensation earned during their last 60 months of service if that compensation is used to calculate their retirement benefits; provide that only creditable compensation earned on or after July 1, 2017, shall be subject to the creditable compensation growth limitations; exempt bona fide promotions or salary advancements from the compensation growth limitation; define "bona fide promotion or salary advancements" as a professional advancement in substantially the same line of work held by the member in the four years immediately prior to the 60-month period or a change in employment position based upon training, education, or expertise; require the Judicial Form Retirement System to refund contributions and interest on contributions for any reductions in creditable compensation; provide that the Judicial Form Retirement System shall determine what constitutes a bona fide promotion or salary advancement; amend KRS 61.598 to provide that members of the Kentucky Employees Retirement System, the County Employees Retirement System, and the State Police Retirement System who retire on or after January 1, 2018, shall be limited to a 10% growth in the creditable compensation earned during their last five years of employment if that compensation is used to calculate their retirement benefits; provide that only creditable compensation earned on or after July 1, 2017, shall be subject to the creditable compensation growth limitations; exempt bona fide promotions or salary advancements, alternative sick leave payments, and lump-sum payments for compensatory time from the compensation growth limitation; exempt from the compensation growth limitation those years of compensation where in the immediately preceding fiscal year the member earned less than 12 months of service credit during the fiscal year, was paid worker's compensation benefits, was on leave without pay for any reason, earned increases directly attributable to overtime hours worked under a federal grant, grant pass-through, or similar program, or earned increases directly attributable to overtime performed during a state of emergency; provide that the Kentucky Retirement Systems shall refund employee contributions and interest on contributions for any reductions in creditable compensation provided by this section; provide that the Kentucky Retirement Systems shall determine what constitutes a bona fide promotion or salary advancement and allow the member to appeal a decision of the system to the board; remove provisions charging employers for creditable compensation growth greater than 10% during the employee's last five years of employment; create a new section of KRS 21.345 to 21.580 to permit a member of the Legislators' Retirement Plan or the Judicial Retirement Plan to opt out of the traditional defined benefit plan and elect to participate in the hybrid cash balance plan; provide that, on the member's effective election date, the value of the member's accumulated contributions, less any interest, shall be deposited into the member's hybrid cash balance account and be considered part of the member's accumulated account balance; provide that on the member's effective election date, an employer pay credit shall be applied to the member's accumulated account balance for each contributing month prior to the effective election date; require the Judicial Form Retirement System to provide the electing member with information detailing the consequences of the member's election; provide that a member shall not be eligible to make an election until a private letter ruling by the IRS is received; make the benefit election under this section irrevocable; amend KRS 21.402 to conform; create a new section of KRS 61.510 to 61.705 to permit a member of the Kentucky Employees Retirement System, the County Employees Retirement System, or the State Police Retirement System to opt out of the traditional defined benefit plan and elect to participate in the hybrid cash balance plan; provide that, on the member's effective election date, the value of the member's accumulated contributions, less any interest, shall be deposited into the member's hybrid cash balance account and be considered part of the member's accumulated account balance; provide that on the member's effective election date, an employer pay credit shall be applied to the member's accumulated account balance for each contributing month prior to the effective election date; require the Kentucky Retirement Systems to provide the electing member with information detailing the consequences of the member's election; provide that a member shall not be eligible to make an election until a private letter ruling by the IRS is received; make the benefit election under this section irrevocable; amend KRS 6.525, 16.583, 16.645, 61.597 and 78.545 to make technical and conforming amendments; provide for severability among provisions of the Act; EMERGENCY. |
| Index Headings of Original Version |
Actuarial Analysis - Retirement limitation on creditable compensation growth Local Mandate - Retirement limitation on creditable compensation growth Effective Dates, Emergency - Retirement Systems, limitation on creditable compensation growth General Assembly - Retirement, limitation on creditable compensation growth Judges and Court Commissioners - Judicial Retirement Plan, limitation on creditable compensation growth Public Officers and Employees - Kentucky Retirement Systems, hybrid cash balance plan, benefit election Public Officers and Employees - Kentucky Retirement Systems, limitation on creditable compensation growth Retirement and Pensions - Judicial Form Retirement System, hybrid cash balance plan, benefit election Retirement and Pensions - Judicial Retirement Plan, limitation on creditable compensation growth Retirement and Pensions - Kentucky Retirement Systems, hybrid cash balance plan, benefit election Retirement and Pensions - Kentucky Retirement Systems, limitation on creditable compensation growth Retirement and Pensions - Legislators' Retirement Plan, limitation on creditable compensation growth State Agencies - Kentucky Retirement Systems, hybrid cash balance plan, benefit election State Employees - Retirement, limitation on creditable compensation growth Administrative Regulations and Proceedings - Retirement Systems, limitation on creditable compensation growth |
| Proposed Amendments | Senate Committee Substitute 1 |
| Votes | Vote History |
| 01/06/17 |
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|---|---|
| 01/07/17 |
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| 02/08/17 |
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| 02/09/17 |
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| 02/13/17 |
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| 02/15/17 |
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| 02/16/17 |
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| 02/21/17 |
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| 03/01/17 |
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| 03/02/17 |
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| 03/03/17 |
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| 03/06/17 |
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| 03/15/17 |
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| 03/27/17 |
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| Amendment | Senate Committee Substitute 1 |
|---|---|
| Impact Statements |
Actuarial Analysis
Local Mandate |
| Summary | Retain original provisions except to review creditable compensation growth in the last five years of employment rather than the last three in the Legislators' Retirement Plan and to not exempt the year of retirement from creditable compensation limits for KERS, CERS, or SPRS; make technical and clerical changes. |
| Index Headings |
Actuarial Analysis - Retirement limitation on creditable compensation growth Local Mandate - Retirement limitation on creditable compensation growth Effective Dates, Emergency - Retirement Systems, limitation on creditable compensation growth General Assembly - Retirement, limitation on creditable compensation growth Judges and Court Commissioners - Judicial Retirement Plan, limitation on creditable compensation growth Public Officers and Employees - Kentucky Retirement Systems, hybrid cash balance plan, benefit election Public Officers and Employees - Kentucky Retirement Systems, limitation on creditable compensation growth Retirement and Pensions - Judicial Form Retirement System, hybrid cash balance plan, benefit election Retirement and Pensions - Judicial Retirement Plan, limitation on creditable compensation growth Retirement and Pensions - Kentucky Retirement Systems, hybrid cash balance plan, benefit election Retirement and Pensions - Kentucky Retirement Systems, limitation on creditable compensation growth Retirement and Pensions - Legislators' Retirement Plan, limitation on creditable compensation growth State Agencies - Kentucky Retirement Systems, hybrid cash balance plan, benefit election State Employees - Retirement, limitation on creditable compensation growth Administrative Regulations and Proceedings - Retirement Systems, limitation on creditable compensation growth |
Last updated: 1/16/2019 3:02 PM (EST)