Kentucky
General Assembly

07/19/19	introduced in House to State Government (H) taken from State Government (H) 1st reading returned to State Government (H) posted in committee
07/20/19	reported favorably, 2nd reading, to Rules floor amendments (1), (2) and (3) filed posted for passage in the Regular Orders of the Day for Monday, July 22, 2019
07/22/19	floor amendment (4) filed 3rd reading floor amendments (2) and (3) ruled not germane to the Governor's Call floor amendment (1) ruled out of order bill passed 52-46 received in Senate to Committee on Committees (S) taken from Committee on Committees (S) 1st reading returned to Committee on Committees (S) to State & Local Government (S)
07/23/19	reported favorably, 2nd reading, to Rules posted for passage in the Regular Orders of the Day for Wednesday, July 24, 2019 floor amendments (1) (2) and (3) filed
07/24/19	3rd reading floor amendments (1) (2) and (3) defeated passed 27-11 received in House enrolled, signed by Speaker of the House received in Senate enrolled, signed by President of the Senate delivered to Governor signed by Governor (Acts ch. 1)

Amendment	House Floor Amendment 1
Piggyback?	Yes
Sponsor	A. Hatton
Summary	Delete the original provisions of the bill; freeze the employer contribution rate of 49.47 percent for the fiscal year beginning on July 1, 2019, for pension and health insurance for nonhazardous duty employees participating in the Kentucky Employees Retirement System who are employed by 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; RETROACTIVE; EMERGENCY.
Index Headings	Effective Dates, Emergency - Kentucky Employees Retirement System, employer contribution rate for quasi-governmental employees Retirement and Pensions - Kentucky Employees Retirement System, employer contribution rate for quasi-governmental employees Universities and Colleges - Kentucky Employees Retirement System, employer contribution rate for quasi-governmental employees Retroactive Legislation - Kentucky Employees Retirement System, employer contribution rate for quasi-governmental employees Appropriations - Kentucky Employees Retirement System, employer contribution rate for quasi-governmental employees Budget and Financial Administration - Kentucky Employees Retirement System, employer contribution rate for quasi-governmental employees Special Purpose Governmental Entities - Kentucky Employees Retirement System, employer contribution rate for quasi-governmental employees

Amendment	House Floor Amendment 2
Sponsor	J. Graviss
Summary	Delete Section 7 relating to nonseverability of bill provisions.
Index Headings	Retirement and Pensions - Kentucky Employees Retirement System, employer contribution rate for quasi-governmental employees

Amendment	House Floor Amendment 3
Sponsor	J. Graviss
Summary	Provide that the nonseverability provisions shall not apply to Section 6 pertaining to the KERS employer rate paid in FY 2019-2020 by quasi-governmental employers.
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

Amendment	House Floor Amendment 4
Sponsor	B. Wheatley
Summary	Retain Sections 2 to 8 of the bill; replace Section 1 of the bill and amend KRS 61.522 to provide a one-time window where quasi-governmental agencies, including local and district health departments and state-supported universities and community colleges, may voluntarily cease participation in the Kentucky Employees Retirement System (KERS) effective June 30, 2020, for nonhazardous employees by paying the actuarial costs of ceasing participation by lump-sum or installments; provide that an eligible KERS employer may request an estimate of the cost of ceasing participation in the system; for any employer whose cessation date occurs on or after the date of the Act, allow employees participating prior to January 1, 2014, (Tier I and II) and hired prior to the effective cessation date a one-time election to continue participating in the system from which the employer ceased participation; provide that employees of the ceasing employer who are hired after the effective cessation date or whose participation with the system occurred on or after January 1, 2014 (Tier III), shall participate in a defined contribution plan established by the employer; vary assumed rate of return/discount rate used to determine cessation costs from 3% to 3.5% based upon employers' decisions regarding payment type (lump-sum vs. installments) and require lump-sum payments for ceasing participation to be paid within one year; establish a maximum installment period of 30 years with interest at the assumed rate of return; establish installment payment amounts that are the higher of FY 2019-2020 employer contributions or the amount determined by multiplying 49.47% of pay by annual average payroll over prior 60 months in which contributions were paid and increasing the dollar value by 1.5% annually, except that if an employer cannot pay off its costs within 30 years and one or more of its employees Tier I and II employees elected to continue participating in KERS after June 30, 2020, the base payment amount will be adjusted to ensure payment within 30 years, but if none of its elected to continue participating in KERS after June 30, 2020, then the employer shall pay the original rate for 30 years and no additional costs or adjustments will apply; provide that KERS quasi-governmental agencies receiving General Fund assistance to pay the higher employer rates will continue to receive the assistance until all costs are paid; EMERGENCY.
Index Headings	Actuarial Analysis - HFA 4 to HB 1 Effective Dates, Emergency - Kentucky Retirement System, option to cease participation in KERS by quasi-governmental employers Effective Dates, Emergency - Kentucky Retirement System, cessation of participation in KERS by quasi-govt. agencies Public Officers and Employees - Quasi-governmental employers, option to cease participation in KERS Public Officers and Employees - Kentucky Retirement System, cessation of participation in KERS by quasi-govt. agencies Retirement and Pensions - Kentucky Employees Retirement System, option to cease participation by postsecondary institutions Retirement and Pensions - Kentucky Retirement System, cessation of participation in KERS by quasi-govt. agencies State Agencies - Kentucky Retirement System, option to cease participation in KERS by quasi-governmental employers State Agencies - Kentucky Retirement System, cessation of participation in KERS by quasi-govt. agencies

Amendment	Senate Floor Amendment 1
Sponsor	R. Webb
Summary	Delete the original provisions of the bill; freeze the employer contribution rate of 49.47 percent for the fiscal year beginning on July 1, 2019, for pension and health insurance for nonhazardous duty employees participating in the Kentucky Employees Retirement System who are employed by 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; RETROACTIVE; EMERGENCY.
Index Headings	Effective Dates, Emergency - Kentucky Employees Retirement System, employer contribution rate for quasi-governmental employees Piggybacked Bills - SFA 1 to HB 1 Retirement and Pensions - Kentucky Employees Retirement System, employer contribution rate for quasi-governmental employees Universities and Colleges - Kentucky Employees Retirement System, employer contribution rate for quasi-governmental employees Retroactive Legislation - Kentucky Employees Retirement System, employer contribution rate for quasi-governmental employees Appropriations - Kentucky Employees Retirement System, employer contribution rate for quasi-governmental employees Budget and Financial Administration - Kentucky Employees Retirement System, employer contribution rate for quasi-governmental employees Special Purpose Governmental Entities - Kentucky Employees Retirement System, employer contribution rate for quasi-governmental employees

Amendment	Senate Floor Amendment 2
Sponsor	R. Thomas
Summary	Retain Sections 3 to 8 of the bill; replace Section 1 of the bill and amend KRS 61.522 to provide a one-time window where quasi-governmental agencies, including local and district health departments and state-supported universities and community colleges, may voluntarily cease participation in the Kentucky Employees Retirement System (KERS) effective June 30, 2020, for nonhazardous employees by paying the actuarial costs of ceasing participation by lump-sum or installments; provide that an eligible KERS employer may request an estimate of the cost of ceasing participation in the system; for any employer whose cessation date occurs on or after the date of the Act, employees hired prior to the effective cessation date shall continue participating in the system from which the employer ceased participation; employees of the ceasing employer who are hired after the effective cessation date shall participate in an alternate plan established by the employer; vary assumed rate of return/discount rate used to determine cessation costs from 3% to 3.5% based upon employers' decisions regarding payment type (lump-sum vs. installments) and require lump-sum payments for ceasing participation to be paid within one year; establish a maximum installment period of 30 years with interest at the assumed rate of return; establish installment payment amounts that are the higher of FY 2019-2020 employer contributions or the amount determined by multiplying 49.47% of pay by annual average payroll over prior 60 months in which contributions were paid and increasing the dollar value by 1.5% annually; if an employer cannot pay off its costs within 30 years, the base payment amount will be adjusted to ensure payment within 30 years; provide that KERS quasi-governmental agencies receiving General Fund assistance to pay the higher employer rates will continue to receive the assistance until all costs are paid; make conforming amendments to Section 2; EMERGENCY.
Index Headings	Special Purpose Governmental Entities - Kentucky Employees Retirement System, option to cease participation by quasi-governmental employers Universities and Colleges - Kentucky Employees Retirement System, option to cease participation by postsecondary institutions Effective Dates, Emergency - Kentucky Retirement System, cessation of participation in KERS by quasi-govt. agencies Effective Dates, Emergency - Kentucky Retirement System, option to cease participation in KERS by quasi-governmental employers Public Officers and Employees - Kentucky Retirement System, cessation of participation in KERS by quasi-govt. agencies Public Officers and Employees - Quasi-governmental employers, option to cease participation in KERS Retirement and Pensions - Kentucky Employees Retirement System, option to cease participation by postsecondary institutions 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 State Agencies - Kentucky Retirement System, option to cease participation in KERS by quasi-governmental employers

Amendment	Senate Floor Amendment 3
Sponsor	M. McGarvey
Summary	Delete the original provisions of the bill; amend KRS 61.522 to permit local and district health departments and state-supported universities and community colleges to voluntarily cease participating in the Kentucky Employees Retirement System under the requirements and restrictions of this section; freeze the employer contribution rate of 49.47 percent for the fiscal year beginning on July 1, 2019, for pension and health insurance for nonhazardous duty employees participating in the Kentucky Employees Retirement System who are employed by 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; RETROACTIVE; EMERGENCY.
Index Headings	Effective Dates, Emergency - Kentucky Employees Retirement System, employer contribution rate for quasi-governmental employees Retirement and Pensions - Kentucky Employees Retirement System, employer contribution rate for quasi-governmental employees Retirement and Pensions - Kentucky Employees Retirement System, participation by universities and health departments Universities and Colleges - Kentucky Employees Retirement System, employer contribution rate for quasi-governmental employees Universities and Colleges - Retirement and pensions, cessation of participation in KERS by universities and health departments Retroactive Legislation - Kentucky Employees Retirement System, employer contribution rate for quasi-governmental employees Public Officers and Employees - Retirement and pensions, cessation of participation in KERS by universities and health departments State Agencies - Kentucky Retirement Systems, cessation of participation in KERS by universities and health depts