House Bill 358

Actions | Amendments
Last Action 03/14/19: received in Senate
Title AN ACT relating to the Kentucky Employees Retirement System and declaring an emergency.
Bill Documents Current
Introduced
Impact Statements Actuarial Analysis
Bill Request Number 941
Sponsors J. Tipton, D. Bentley, L. Elkins, D. Frazier, C. Freeland, J. Graviss, M. Hart, A. Koenig, S. Maddox, C. Massey, M. Meredith, R. Meyer, K. Moser, J. Nemes, P. Pratt, M. Prunty, S. Santoro, D. St. Onge, K. Upchurch
Summary of Original Version Create a new section of KRS 61.510 to 61.705 to provide that postsecondary education institutions may voluntarily cease participation in the Kentucky Employees Retirement System (KERS) by paying the actuarial costs of ceasing participation; require institutions to file request to cease participation by December 31, 2019; define "postsecondary institutions" as Eastern Kentucky University, Kentucky State University, Morehead State University, Murray State University, Northern Kentucky University, Western Kentucky University, the Kentucky Community Technical College System, and the Kentucky Higher Education Student Loan Corporation; set actuarial costs for institutions ceasing participation to assumptions in the 2018 actuarial valuation and provide that the institution may pay off the costs over a period not to exceed 25 years at an interest rate of 5.25% per annum; provide that existing employees of a postsecondary institution ceasing participation may, subject to a favorable private letter ruling, elect to continue participating in the system; amend KRS 61.510, 61.520, 61.525, 61.543, and 61.560 to conform; provide that the KERS employer contribution rate shall be 49.47% of pay in FY 2019-2020 for Regional Mental Health Programs, Local and District Health Departments, domestic violence shelters, rape crisis centers, child advocacy centers, state supported universities and community colleges, and any other agency eligible to voluntarily cease participating in the Kentucky Employees Retirement System pursuant to KRS 61.522; EMERGENCY.
Index Headings of Original Version Public Officers and Employees - Postsecondary institutions, option to cease participation in KERS
Retirement and Pensions - Kentucky Employees Retirement System, option to cease participation by postsecondary institutions
State Agencies - Kentucky Retirement System, option to cease participation in KERS by postsecondary institutions
Effective Dates, Emergency - Kentucky Retirement System, option to cease participation in KERS by postsecondary institutions
Actuarial Analysis - Kentucky Retirement System, option to cease participation in KERS by postsecondary institutions
Jump to Proposed Amendments House Committee Substitute 1
House Floor Amendment 1
House Floor Amendment 2
House Floor Amendment 3
Senate Committee Substitute 1
Votes Vote History

Actions

Top | Amendments
02/13/19
  • introduced in House
02/14/19
  • to State Government (H)
02/19/19
  • taken from State Government (H)
  • 1st reading
  • returned to State Government (H)
  • posted in committee
02/21/19
  • reported favorably, 2nd reading, to Rules with Committee Substitute (1)
  • posted for passage in the Regular Orders of the Day for Friday, February 22, 2019
02/26/19
  • floor amendment (1) filed to Committee Substitute
02/27/19
  • floor amendment (2) filed to Committee Substitute, floor amendment (3) filed to bill
  • 3rd reading, passed 76-21 with Committee Substitute (1) and floor amendment (1)
02/28/19
  • received in Senate
03/04/19
  • to State & Local Government (S)
03/06/19
  • taken from State & Local Government (S)
  • 1st reading
  • returned to State & Local Government (S)
03/12/19
  • reported favorably, 2nd reading, to Rules with Committee Substitute (1)
03/13/19
  • posted for passage in the Regular Orders of the Day for Wednesday, March 13, 2019
  • 3rd reading, passed 25-12 with Committee Substitute (1)
  • received in House
  • to Rules (H)
  • posted for passage for concurrence in Senate Committee Substitute (1)
03/14/19
  • House refused to concur in Senate Committee Substitute (1)
  • received in Senate

Proposed Amendments

Top | Actions
Amendment House Committee Substitute 1
Impact Statements Actuarial Analysis
Summary Create a new section of KRS 61.510 to 61.705 to provide that postsecondary education institutions may voluntarily cease participation in the Kentucky Employees Retirement System (KERS) by paying the actuarial costs of ceasing participation; require institutions to file request to cease participation by on or after October 31, 2019, but prior to February 1, 2020; define "postsecondary institutions" as Eastern Kentucky University, Kentucky State University, Morehead State University, Murray State University, Northern Kentucky University, Western Kentucky University, the Kentucky Community Technical College System, and the Kentucky Higher Education Student Loan Corporation; set actuarial costs for institutions ceasing participation to assumptions in the 2019 actuarial valuation and provide that the institution may pay off the costs over a period not to exceed 25 years at an interest rate of 5.25% per annum for pension costs and at a rate of 6.25% for retiree health costs; provide that existing employees of a postsecondary institution ceasing participation may, subject to a favorable private letter ruling, elect to continue participating in the system; amend KRS 61.510, 61.520, 61.525, 61.543, and 61.560 to conform; provide that the KERS employer contribution rate shall be 49.47% of pay in FY 2019-2020 for Regional Mental Health Programs, Local and District Health Departments, domestic violence shelters, rape crisis centers, child advocacy centers, state supported universities and community colleges, and any other agency eligible to voluntarily cease participating in the Kentucky Employees Retirement System pursuant to KRS 61.522; EMERGENCY.
Index Headings Effective Dates, Emergency - Kentucky Retirement System, option to cease participation in KERS by postsecondary institutions
Public Officers and Employees - Postsecondary institutions, option to cease participation in KERS
Retirement and Pensions - Kentucky Employees Retirement System, option to cease participation by postsecondary institutions
State Agencies - Kentucky Retirement System, option to cease participation in KERS by postsecondary institutions

Amendment House Floor Amendment 1
Sponsor J. Tipton
Summary Provide that only the new hires of those postsecondary institutions paying the costs of ceasing participation in the Kentucky Employees Retirement System (KERS) shall no longer participate in the system; clarify that provisions apply only to nonhazardous KERS members; make technical corrections; EMERGENCY.
Index Headings Technical Corrections - HB 358
Effective Dates, Emergency - Kentucky Retirement System, option to cease participation in KERS by postsecondary institutions
Public Officers and Employees - Postsecondary institutions, option to cease participation in KERS
Retirement and Pensions - Kentucky Employees Retirement System, option to cease participation by postsecondary institutions
State Agencies - Kentucky Retirement System, option to cease participation in KERS by postsecondary institutions

Amendment House Floor Amendment 2
Sponsor D. Graham
Summary Delete provisions allowing postsecondary institutions to voluntarily cease participating in the Kentucky Employees Retirement System (KERS) by paying the actuarial costs; provide that the Public Pension Oversight Board shall study funding and participating issues of quasi-governmental employers in KERS and submit findings by November 27, 2019; require the Kentucky Retirement Systems to request a private letter ruling as to whether a current member of the system may make an election to participate/not participate in the system when the employer is voluntarily ceasing participation; retain provisions that set the KERS employer contribution rate at 49.47% of pay in FY 2019-2020 for Regional Mental Health Programs, Local and District Health Departments, domestic violence shelters, rape crisis centers, child advocacy centers, state supported universities and community colleges, and any other agency eligible to voluntarily cease participating in the Kentucky Employees Retirement System pursuant to KRS 61.522
Index Headings Public Officers and Employees - Kentucky Employees Retirement System, study quasi-govt. employer issues in KERS
Retirement and Pensions - Kentucky Employees Retirement System, study quasi-govt. employer issues in KERS
State Agencies - Kentucky Retirement System, study quasi-govt. employer issues in KERS

Amendment House Floor Amendment 3
Sponsor D. Graham
Summary Delete provisions allowing postsecondary institutions to voluntarily cease participating in the Kentucky Employees Retirement System (KERS) by paying the actuarial costs; provide that the Public Pension Oversight Board shall study funding and participating issues of quasi-governmental employers in KERS and submit findings by November 27, 2019; require the Kentucky Retirement Systems to request a private letter ruling as to whether a current member of the system may make an election to participate/not participate in the system when the employer is voluntarily ceasing participation; retain provisions that set the KERS employer contribution rate at 49.47% of pay in FY 2019-2020 for Regional Mental Health Programs, Local and District Health Departments, domestic violence shelters, rape crisis centers, child advocacy centers, state supported universities and community colleges, and any other agency eligible to voluntarily cease participating in the Kentucky Employees Retirement System pursuant to KRS 61.522.
Index Headings Public Officers and Employees - Kentucky Employees Retirement System, study quasi-govt. employer issues in KERS
Retirement and Pensions - Kentucky Employees Retirement System, study quasi-govt. employer issues in KERS
State Agencies - Kentucky Retirement System, study quasi-govt. employer issues in KERS

Amendment Senate Committee Substitute 1
Impact Statements Actuarial Analysis
Summary Create a new section of KRS 61.510 to 61.705 to provide that postsecondary education institutions may voluntarily cease participation in the Kentucky Employees Retirement System (KERS) by paying the actuarial costs of ceasing participation; require institutions to file request to cease participation on or before December 31, 2019; define "postsecondary institutions" as Eastern Kentucky University, Kentucky State University, Morehead State University, Murray State University, Northern Kentucky University, Western Kentucky University, the Kentucky Community and Technical College System, and the Kentucky Higher Education Student Loan Corporation; set actuarial costs for institutions ceasing participation to assumptions in the 2018 actuarial valuation, except that the assumed rate of return shall not be less than 3% if the institution is paying by installments and 4.5% if the institution is paying by lump-sum; provide that the institution may pay off the costs in installment payments using the contributions paid to KERS in FY 2019-2020 by the institution as a base and increasing that value by 1.5% annually until all costs are paid off; provide that interest on the principal balance for an institution electing to make installment payments shall be 5.25% per annum for pension costs and 6.25% for retiree health costs; provide that all existing Tier I and II employees of a postsecondary institution ceasing participation may elect to continue participating in the system after the institution's effective cessation date up to specified service/age dates; require institutions that are ceasing participation to provide a defined contribution plan for employees not participating in KERS; create a new section of KRS 61.510 to 61.705 to provide that all quasi-governmental employers shall be required to involuntarily cease participation in the Kentucky Employees Retirement System (KERS) and pay the actuarial costs of ceasing participation unless the agency makes an election to continue participating in KERS on or before December 31, 2019; define "quasi-governmental employers" as postsecondary education institutions, health departments, regional mental health centers, state-administered retirement systems, domestic violence shelters, rape crisis centers, child advocacy centers, and any other agency eligible to cease participation in KERS under KRS 61.522; set actuarial costs for quasi-governmental employers ceasing participation to assumptions in the 2018 actuarial valuation, except that the assumed rate of return shall not be less than 3% if the quasi-governmental employer is paying by installments and 4.5% if the quasi-governmental employer is paying by lump-sum; provide that the quasi-governmental employer may pay off the costs in installment payments using the contributions paid to KERS in FY 2019-2020 by the institution as a base and increasing that value by 1.5% annually until all costs are paid off; provide that interest on the principal balance for quasi-governmental employers electing to make installment payments shall be 3% per annum for pension and retiree health costs; provide that all current and future employees of a quasi-governmental employer who is involuntarily ceasing participation shall not participate in KERS after June 30, 2020, and shall instead participate in the defined contribution plan established by the ceasing employer; amend KRS 18A.225 to provide that employers ceasing participation in in KERS may still participate in the Kentucky Employees Health Plan (KEHP) for their employees; amend KRS 61.510, 61.520, 61.525, 61.543, and 61.560 to conform; provide that the provisions of KRS 6.350 shall not impair the validity of the Act in a court of law; provide that the KERS employer contribution rate shall be 49.47% of pay in FY 2019-2020 for Regional Mental Health Programs, Local and District Health Departments, domestic violence shelters, rape crisis centers, child advocacy centers, state-supported universities and community colleges, and any other agency eligible to voluntarily cease participating in the Kentucky Employees Retirement System pursuant to KRS 61.522; EMERGENCY.
Index Headings Effective Dates, Emergency - Kentucky Retirement System, cessation of participation in KERS by quasi-govt. agencies
Public Officers and Employees - Kentucky Retirement System, cessation of participation in KERS by quasi-govt. agencies
Retirement and Pensions - Kentucky Retirement System, cessation of participation in KERS by quasi-govt. agencies
State Agencies - Kentucky Retirement System, cessation of participation in KERS by quasi-govt. agencies
Actuarial Analysis - Kentucky Retirement System, cessation of participation in KERS by quasi-govt. agencies

Last updated: 3/25/2019 5:21 PM (EDT)
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