17RS House Bill 87

House Bill 87

Actions

Last Action	to State Government (H)
Title	AN ACT relating to pension spiking and declaring an emergency.
Bill Documents	Introduced
Impact Statements	Actuarial Analysis Local Mandate
Bill Request Number	348
Sponsor	S. Riggs
Summary of Original Version	Create a new section of KRS Chapter 6 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 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 4 years immediately prior to the 3-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 Chapter 21 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 4 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 5 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, lump-sum payments for compensatory time, increases due to the member being on unpaid leave for any reason in the preceding year, and overtime paid under a grant program or due to a state or federally declared emergency; provide that the Kentucky Retirement Systems shall refund employee 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 5 years of employment; amend KRS 16.645 and 78.545 to conform; EMERGENCY.
Index Headings of Original Version	General Assembly - Retirement, on creditable compensation growth, limitation on Public Officers and Employees - Kentucky Retirement Systems, creditable compensation growth, limitation on Retirement and Pensions - Judicial Retirement Plan, creditable compensation growth, limitation on Retirement and Pensions - Kentucky Retirement Systems, creditable compensation growth, limitation on Retirement and Pensions - Legislators' Retirement Plan, creditable compensation growth, limitation on State Employees - Retirement, creditable compensation growth, limitation on Administrative Regulations and Proceedings - Retirement Systems, creditable compensation growth, limitation of Local Mandate - Retirement, creditable compensation growth, limitation on Actuarial Analysis - Retirement, creditable compensation growth, limitation on

12/09/16	Prefiled by the sponsor(s).
01/03/17	introduced in House to State Government (H)