House Bill 505

Last Action 02/21/19: to State Government (H)
Title AN ACT relating to retirement system employer contribution rates.
Bill Documents Introduced
Fiscal Impact Statement Actuarial Analysis
Bill Request Number 1234
Sponsor J. Miller
Summary of Original Version Repeal, reenact, and amend KRS 161.550 to require employers to pay the full actuarially required contribution to Teachers' Retirement Systems; provide that for the employer rates payable on or after July 1, 2020, the unfunded liabilities shall be financed with a reduced payroll growth assumption so that by the 2025 valuation the level dollar amortization method is used; to prorate unfunded liability payments to each employer based upon the employer's average share of payroll over fiscal years 2015, 2016, and 2017; provide that employer funding requirements shall be determined using the entry age normal cost method, a five-year asset smoothing method, and assumptions adopted by the TRS board; define "normal cost" and "actuarially accrued unfunded liability contribution," and provide that local school districts shall pay 2% of pay towards the costs of new TRS members retirement benefits; amend KRS 161.400 to make conforming amendments; create a new section of KRS 78.510 to 78.852 to provide that CERS employer contribution rates shall not increase by more than 12% per year over the prior fiscal year from July 1, 2018, to June 30, 2028; provide that CERS rate increase limit is retroactive to July 1, 2018; include severability clause.
Index Headings of Original Version Actuarial Analysis - County Employees Retirement System, phase-in to full ARC
Local Government - County Employees Retirement System, phase-in to full ARC
Retirement and Pensions - County Employees Retirement System, phase-in to full ARC
Retirement and Pensions - Teachers' Retirement System, payment of full ARC by employers, requiring
State Agencies - State-Adm. Retirement Systems, funding provisions


  • introduced in House
  • to State Government (H)

Last updated: 11/9/2023 3:08 PM (EST)