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House Bill 484

Actions | Amendments
Last Action 04/07/20: signed by Governor (Acts ch. 79)
Title AN ACT relating to retirement and declaring an emergency.
Bill Documents Current/Final
Introduced
Fiscal Impact Statements Actuarial Analysis
Local Mandate
Additional Fiscal Impact Statements Exist
Bill Request Number 298
Sponsors R. Webber, M. Meredith, K. Banta, J. Blanton, T. Bojanowski, K. Bratcher, G. Brown Jr, T. Burch, M. Dossett, L. Elkins, D. Frazier, C. Freeland, C. Fugate, J. Gooch Jr., D. Hale, M. Hart, R. Heath, S. Heavrin, C. Howard, T. Huff, J. Jenkins, S. Lewis, S. Maddox, C. Massey, B. McCool, R. Meyer, J. Nemes, P. Pratt, M. Prunty, B. Reed, R. Rothenburger, B. Rowland, S. Rudy, S. Santoro, J. Sims Jr, W. Thomas, K. Upchurch, B. Wheatley, L. Yates
Summary of Original Version Create a new section of KRS 61.510 to 61.705 to specify contents/intent of bill which includes transferring the administration of the County Employees Retirement System (CERS) from the Kentucky Retirement Systems (KRS) Board of Trustees to the CERS board of trustees established by the Act; provide that the administration of the Kentucky Employees Retirement System (KERS) and the State Police Retirement System (SPRS) shall continue to be the responsibility of the KRS Board of Trustees; provide that the Kentucky Public Pensions Authority (KPPA) established by the Act shall provide personnel needs, day-to-day administrative duties, and other duties for the KRS Board of Trustees and the CERS Board of Trustees; and to provide that it is the intent of the General Assembly in the 2021 Regular Session to enact legislation to create separate statutory benefit structures for KRS and CERS while retaining shared statutes that relate to administrative provisions that will be the responsibility of the KPPA; create a new section of KRS Chapter 61 to establish the KPPA membership, duties, and powers; provide that membership shall include 4 KRS board members, 4 CERS board members; provide that effective April 1, 2021, KRS staff shall become the staff of the KPPA to serve the needs of both the KRS and CERS boards; provide that effective July 1, 2021, staff of the KPPA shall be transferred into a personnel system administered by the KPPA; provide that the KPPA shall not be subject to reorganization by the Governor; create a new section of KRS 78.510 to 78.852 to establish CERS Board composition with powers/duties/reporting requirements similar to the KRS Board in KRS 61.645; provide that the CERS board shall not be subject to reorganization by the Governor; amend KRS 61.645 to remove CERS representation from the KRS board and to establish a new 9 member KRS Board who will administer KERS and SPRS; provide that the KERS board shall not be subject to reorganization by the Governor; amend KRS 78.790 to establish a CERS Investment Committee and requirements for an investment procurement policy by the CERS board; create new sections of KRS 78.510 to 78.852 to add in actuarial valuation requirements/experience study requirements/reporting requirements of actuarial data and reports for the newly created CERS board and the process for the CERS board to determine employer contribution rates; amend KRS 11A.010, 11A.201, and 11A.236 to add the CERS Board and the KPPA to the Executive Branch Code of Ethics requirements; amend KRS 66.400 to provide that no municipality may file bankruptcy if it is in default or delinquent in paying contributions to CERS; amend KRS 61.701 to establish a CERS insurance trust fund for retiree health benefits separate from the KRS insurance trust fund and to move CERS funds in the KRS insurance trust fund to the CERS insurance trust fund; amend KRS 78.535 to add in KRS 61.522 provisions regarding employer cessation of participation for CERS and to provide that the CERS Board shall determine the cost of ceasing participation; amend KRS 78.540 to add in provisions of KRS 61.535 and 61.550 relating to when membership ceases that were previously cross-referenced in KRS 78.545; amend KRS 78.625 to add in employer reporting provisions that were included in KRS 61.675 for KERS employers and were previously cross-referenced via KRS 78.545; make technical amendments; amend KRS 78.852 to restore language in the statutes due to a recent court decision and to provide that CERS employers are responsible for funding CERS obligations; amend KRS 6.350, 7A.250, 18A.205, 18A.225, 42.276, 42.728, 61.510, 61.522, 61.535, 61.552, 61.555, 61.592, 61.637, 61.650, 61.670, 61.702, 64.475, 64.640, 70.293, 78.510, 78.530, 78.545, 78.610, 78.615, 95.022, and 95.290 to conform, make technical and clarifying amendments to provide the same authorities to the CERS board as provided the KRS board and to restore language in the statutes due to a recent court decision; repeal KRS 78.533, 78.534, 78.532, 78.542, and 78.780; establish noncodified language toprovide that decisions made by the KRS Board on behalf of CERS will stand and shall not be reversed except under authority granted by KRS 78.510 to 78.852; provide that the 3 elected CERS trustees serving/elected to the KRS board on April 1, 2021, shall be the 3 elected trustees of the new CERS Board; provide that the 2 elected KERS trustees and 1 SPRS trustee serving/elected to the KRS Board on April 1, 2021, shall continue to serve on the newly amended KRS Board; provide that the Governor shall make the initial appointments to the new KRS and CERS Board by March 1, 2021; provide that the Governor shall not reorganize the KRS board prior to the new boards being established; specify that no provision of this Act shall increase or decrease benefits; specify that no provision of this Act shall limit the General Assembly’s authority held prior to the Act; confirm the CERS board election process passed in 2019 to synchronize elections; provide that the effective date of Sections 1 to 46 of this Act shall be April 1, 2021.
Index Headings of Original Version Actuarial Analysis - Kentucky Retirement Systems, separate CERS from KRS governance
Local Mandate - Kentucky Retirement Systems, separate CERS from KRS governance
Local Government - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems
Retirement and Pensions - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems
Retirement and Pensions - Kentucky Retirement Systems, separate CERS from KRS governance
Cities - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems
Counties - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems
Fiscal Note - Kentucky Retirement Systems, seperate CERS from KRS governance
Jump to Proposed Amendments House Committee Substitute 1 with Fiscal Impact Statements
House Floor Amendment 1
Senate Floor Amendment 1
Senate Floor Amendment 2
Senate Floor Amendment 3
Senate Floor Amendment 4
Senate Floor Amendment 5
Senate Floor Amendment 6
Votes Vote History

Actions

Top | Amendments
02/25/20
  • introduced in House
02/27/20
  • to Local Government (H)
02/28/20
  • posted in committee
03/06/20
  • taken from Local Government (H)
  • 1st reading
  • returned to Local Government (H)
03/09/20
  • reported favorably, 2nd reading, to Rules with Committee Substitute (1)
  • posted for passage in the Regular Orders of the Day for Tuesday, March 10, 2020
03/10/20
  • floor amendment (1) filed to Committee Substitute
  • 3rd reading, passed 90-4 with Committee Substitute (1)
03/11/20
  • received in Senate
03/17/20
  • taken from Committee on Committees (S)
  • 1st reading
  • returned to Committee on Committees (S)
  • to State & Local Government (S)
03/18/20
  • reported favorably, 2nd reading, to Rules
  • floor amendments (1), (2), (3) and (4) filed
03/19/20
  • posted for passage in the Regular Orders of the Day for Thursday, March 26, 2020
  • floor amendments (5) and (6-title) filed
03/26/20
  • 3rd reading
  • floor amendments (1) and (2) withdrawn
  • passed 31-1 with floor amendments (3) (4) (5) and (6-title)
  • received in House
  • to Rules (H)
  • posted for passage for concurrence in Senate floor amendments (3) (4) (5) and (6-title)
  • House concurred in Senate floor amendments (3) (4) (5) and (6-title)
  • passed 78-4
  • enrolled, signed by Speaker of the House
  • enrolled, signed by President of the Senate
  • delivered to Governor
04/07/20
  • signed by Governor (Acts ch. 79)

Proposed Amendments

Top | Actions
Amendment House Committee Substitute 1
Fiscal Impact Statements Actuarial Analysis to House Committee Substitute 1
Local Mandate to House Committee Substitute 1
Summary Retain original provisions except to: provide that the KPPA shall hire a single actuarial consulting firm for KRS and CERS; provide that CERS shall pay for the all initial setup costs for establishing a separate CERS board and the KPPA and for annual costs attributable to separation for three fiscal years after established; provide that the KPPA, KRS board, and the CERS board shall take all actions available under the law to contain costs for the trusts, including costs for participating employers, members, and retirees; amend KRS 7A.250 to provide that the Public Pension Oversight Board (PPOB) shall review retirement system administrative expenses at least once every four years; provide that the three trustees appointed to the current KRS board from lists submitted by KLC, KACO, and KSBA shall serve for the remainder of their term as the three trustees appointed by the Governor to the new CERS board with "retirement experience"; and provide that the six trustees appointed to the current KRS board who have "investment experience" shall serve for the remainder of their term as the trustees appointed by the Governor to the amended KRS board who have "retirement experience" or "investment experience."
Index Headings Actuarial Analysis - Kentucky Retirement Systems, separate CERS from KRS governance
Local Mandate - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems
Local Government - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems
Retirement and Pensions - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems
Retirement and Pensions - Kentucky Retirement Systems, separate CERS from KRS governance
Cities - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems
Counties - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems

Amendment House Floor Amendment 1
Sponsor J. Graviss
Summary Retain original provisions except to provide that the KPPA authority members, KRS board of trustee members, and the CERS board of trustee members shall not be limited to the Legal Services Duties and Maximum Rate Schedule promulgated by the Government Contract Review Committee in their reimbursement for legal expenses arising out of the performance of their duties; provide that the KPPA authority members, KRS board of trustee members, and the CERS board of trustee members shall be paid the per diem currently provided to KRS board members of $190 per day; provide that wherever applicable to the operations and management of the authority or systems, accounting, auditing, and financial reporting standards and best practices established by the Governmental Accounting Standards Board (GASB) and the Government Finance Officers Association (GFOA) shall be followed.
Index Headings Local Government - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems
Retirement and Pensions - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems
Retirement and Pensions - Kentucky Retirement Systems, separate CERS from KRS governance
Cities - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems
Counties - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems

Amendment Senate Floor Amendment 1
Sponsor J. Higdon
Summary Retain original provisions except to provide that appointment or contracting of executive director for KPPA and chief executive officers for CERS and KERS board of trustees are subject to Senate confirmation.
Index Headings Local Government - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems
Retirement and Pensions - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems
Retirement and Pensions - Kentucky Retirement Systems, separate CERS from KRS governance
Cities - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems
Counties - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems

Amendment Senate Floor Amendment 2
Sponsor J. Higdon
Summary Retain original provisions except to provide that the payroll growth assumption for purposes of determining the actuarially accrued liability contribution under the level-percentage-of-payroll amortization method for CERS in the 2021 actuarial valuation and subsequent actuarial valuations shall be zero percent (0%).
Index Headings Local Government - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems
Retirement and Pensions - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems
Retirement and Pensions - Kentucky Retirement Systems, separate CERS from KRS governance
Cities - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems
Counties - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems

Amendment Senate Floor Amendment 3
Sponsor J. Higdon
Summary Retain original provisions except to remove language that would transfer all KPPA staff to a personnel system adopted by the KPPA and provide that all employees of the KPPA, except for the executive director, shall be subject to the state personnel system established pursuant to KRS 18A.005 to 18A.204 and shall have their salaries determined by the secretary of the Personnel Cabinet.
Index Headings Local Government - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems
Retirement and Pensions - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems
Retirement and Pensions - Kentucky Retirement Systems, separate CERS from KRS governance
Cities - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems
Counties - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems

Amendment Senate Floor Amendment 4
Sponsor J. Higdon
Summary Retain original provisions except to provide that the CERS board shall pay any additional ongoing annual administrative and investment expenses that occur after the establishment of a separate CERS board and KPPA that are determined by the authority to be a direct result of establishing a seperate CERS board and the KPPA.
Index Headings Local Government - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems
Retirement and Pensions - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems
Retirement and Pensions - Kentucky Retirement Systems, separate CERS from KRS governance
Cities - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems
Counties - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems

Amendment Senate Floor Amendment 5
Sponsor D. Thayer
Summary Retain original provisions; provide that the provisions of Section 48 of this Act is an EMERGENCY.
Index Headings Local Government - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems
Retirement and Pensions - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems
Retirement and Pensions - Kentucky Retirement Systems, separate CERS from KRS governance
Cities - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems
Counties - County Employees Retirement System, separate governance structure from Kentucky Retirement Systems

Amendment Senate Floor Amendment 6
Sponsor D. Thayer
Summary Make title amendment.
Index Headings Title Amendments - HB 484

Last updated: 10/27/2020 12:10 PM (EDT)
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