| Last Action | 03/01/18: to Appropriations & Revenue (H) |
|---|---|
| Title | AN ACT relating to retirement and declaring an emergency. |
| Bill Documents | Introduced |
| Fiscal Impact Statements |
Actuarial Analysis
Fiscal Note |
| Bill Request Number | 908 |
| Sponsors | S. Riley, T. Couch, R. Huff, J. York |
| Summary of Original Version | Create a new section of KRS 161.220 to 161.716 to establish risk control mechanisms that shall be implemented by the board of trustees for the Teachers' Retirement System (TRS) if funding for retirement benefits applying to members hired on or after July 1, 2018, falls below 95%; amend KRS 161.155 to limit the amount of unused sick leave that may be used to calculate retirement benefits to the number of days accrued as of June 30, 2018; amend KRS 161.540 to increase the employee contribution rate for pensions to 10% for new members of TRS; amend KRS 161.550 to limit state appropriations to fund benefits for new TRS members to 6% of payroll, but require the General Assembly to pay the full actuarially required contribution rate (ARC) for the TRS for all fiscal years occurring on or after July 1, 2018; amend KRS 161.600 to require new TRS members participating on or after July 1, 2018, to attain an age and years of service that total at least 85 to qualify for unreduced retirement benefits or that total no less than 70 to qualify for reduced retirement benefits; make technical and conforming amendments to KRS 161.220, 161.420, 161.600, 161.620, and 161.623; create a new section of KRS 78.510 to 78.852 to provide that the administration of the County Employees Retirement System (CERS) shall be transferred from the Kentucky Retirement System (KRS) board of trustees to the CERS board of trustees established on July 1, 2018; allow the new CERS board to contract with KRS for administration of benefits, investments, or other services as needed for a period not to exceed four years; create new sections of KRS 78.510 to 78.852, including new provisions to permit nonhazardous members who began participating on or after January 1, 2014, to make a one-time irrevocable election to transfer from the hybrid cash balance plan into the defined benefit tier for members who began participating on or after July 1, 2008, but limit establish risk controls mechanisms for this tier; amend KRS 78.510, 78.530, 78.535, 78.540, 78.610, 78.615, 78.616, 78.625, 78.630, 78.640, 78.650, 78.652, 78,790, 78.852, and 78.550 to establish separate statutory provisions governing administration, benefits, and investments of the County Employees Retirement System; establish a 9-member CERS board composed of 3 elected members, and 6 individuals appointed by the Kentucky League of Cities, the Kentucky Association of Counties, or the Kentucky School Boards Association who must have 10 years of "investment experience" or "retirement experience" as defined by the bill; specify investment, reporting, and transparency requirements; amend KRS 6.350, 7A.255, 16.505, 16.555, 16.576, 16.577, 16.583, 16.582, 18A.205, 61.510, 61.522, 61.535, 61.540, 61.545, 61.550, 61.552, 61.5525, 61.555, 61.559, 61.565, 61.590, 61.592, 61.595, 61.597, 61.598, 61.600, 61.607, 61.621, 61.623, 61.625, 61.630, 61.637, 61.650, 61.652, 61.660, 61.665, 61.670, 61.675, 61.680, 61.690, 61.691, 61.701, 61.702, 61.705, 70.292, 70.293, 95.022, 95.290, 161.155, and 61.675 to conform; amend KRS 61.645 to remove CERS elected and appointed representation on the KRS board; amend KRS 7A.250 to place CERS under the jurisdiction of the Public Pension Oversight Board; amend KRS 18A.225 to allow CERS retirees to participate in the Kentucky Employees Health Plan; repeal KRS 78.533, 78.534, 78.532, 78.542, 78.545, and 212.434; provide that decisions made by the KRS board on behalf of CERS shall stand and shall not be reversed except as provided by KRS 78.510 to 78.852; provide that the three elected CERS trustees serving on the KRS board prior to July 1, 2017, shall serve as the elected trustees on the new CERS board; provide that no provision of this Act shall increase or decrease benefits to members or retired members of KRS or CERS; EMERGENCY, effective July 1, 2018. |
| Index Headings of Original Version |
Actuarial Analysis - Retirement and pensions, Teachers and County Employees Retirement Systems, July 1, 2018 Fiscal Note - Retirement and pensions, Teachers and County Employees Retirement Systems, July 1, 2018 Cities - County Employees Retirement System, separate administration from Kentucky Retirement Systems Counties - County Employees Retirement System, separate administration from Kentucky Retirement Systems Effective Dates, Emergency - County Employees Retirement, separated from Kentucky Retirement Systems, July 1, 2018 Effective Dates, Emergency - Retirement and pensions, Teachers and County Employees Retirement Systems, July 1, 2018 Retirement and Pensions - County Employees Retirement System, separate administration from Kentucky Retirement Systems Teachers - Retirement and pensions, new defined benefit tier for new teachers |
| 02/27/18 |
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| 03/01/18 |
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Last updated: 9/1/2020 2:57 PM (EDT)
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