19SS HB 2

House Bill 2

Actions

Last Action	07/19/19: posted in committee
Title	AN ACT relating to retirement costs for Kentucky Retirement Systems employers, making an appropriation therefor, and declaring an emergency.
Bill Documents	Introduced
Fiscal Impact Statements	Actuarial Analysis Fiscal Note Local Mandate
Bill Request Number	11
Sponsors	J. Graviss, B. Wheatley, R. Adkins, T. Bojanowski, C. Booker, T. Branham Clark, G. Brown Jr., T. Burch, M. Cantrell, J. Donohue, K. Flood, A. Gentry, J. Glenn, D. Graham, C. Harris, A. Hatton, K. Hinkle, C. Howard, J. Jenkins, N. Kulkarni, M. Marzian, R. Meeks, R. Meyer, C. Miller, P. Minter, R. Palumbo, R. Rand, J. Raymond, D. Schamore, A. Scott, J. Sims Jr, M. Sorolis, C. Stevenson, W. Stone, S. Westrom, R. Wiederstein, L. Willner
Summary of Original Version	Amend KRS 61.510 to define for the Kentucky Employees Retirement System (KERS) "quasi-governmental employer" and "governmental employer"; define quasi-governmental employers as Mental Health/Mental Retardation Boards, Local and District Health Departments, domestic violence shelters, rape crisis centers, child advocacy centers, state supported universities and community colleges participating in KERS, and any other agency eligible to voluntarily cease participation in KERS pursuant to KRS 61.522; define governmental employer as any other KERS employer who is not a quasi-governmental employer; make technical amendments to conform to court decision regarding 2018 RS SB 151 as it relates to the unfunded liability amortization method; repeal reenact, and amend KRS 61.565 to provide that from July 1, 2019, to June 30, 2044, the KERS nonhazardous employer contribution rate for quasi-governmental employers shall be 49.47% of pay and for governmental employers shall be the full actuarially required contribution rate, including the costs for keeping the KERS quasi-governmental employer rate at 49.47% of pay; provide that of the total employer rate paid by quasi-governmental employers and governmental employers, the amount paid to the retiree health fund from July 1, 2019, to June 30, 2024, shall be the normal cost of the fund not to exceed 2.21% of pay and that any other funding that would have otherwise been paid to the retiree health fund shall be paid into the pension fund; provide that the amount paid by KERS quasi-governmental and governmental employers from July 1, 2019, to June 30, 2044, in terms of dollars shall not be less than the dollar amount paid by the employer in fiscal year 2018-2019; make technical amendments to conform to court decision regarding 2018 RS SB 151; amend KRS 61.670 to provide that in evaluating the assumed rate of return and discount rate used in the annual valuation and actuarial experience study, the Kentucky Retirement Systems (KRS) board and consulting actuary shall consider investment returns over a period greater than 20 years and shall not adjust the assumed rate of return or discount rate by more than 0.25% per year; provide that actuarial reports sent by the KRS to the Legislative Research Commission (LRC) shall upon receipt by LRC be distributed to all members of the General Assembly; set the employer contribution rate at 49.47% of pay for fiscal year 2019-2020 for KERS employers who are mental health/mental retardation boards, 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, make retroactive to July 1, 2019; APPROPRIATION; EMERGENCY.
Index Headings of Original Version	Fiscal Note - Kentucky Retirement System, KERS employer contribution rate for quasi-governmental employers Actuarial Analysis - Kentucky Retirement Systems, KERS employer contribution rate for quasi-governmental employers Local Mandate - Kentucky Retirement Systems, KERS employer contribution rate for quasi-governmental employers Effective Dates, Emergency - Retirement, KERS employer rates Public Officers and Employees - Retirement, KERS employer contribution rate for quasi-governmental employers Retirement and Pensions - Kentucky Retirement Systems, KERS employer contribution rate for quasi-governmental employers State Agencies - Kentucky Retirement Systems, KERS employer contribution rate for quasi-governmental employers Retroactive Legislation - Kentucky Retirement Systems, KERS employer contribution rate for quasi-governmental employers