| Last Action | 03/05/20: posted in committee |
|---|---|
| Title | AN ACT relating to the Teachers' Retirement System. |
| Bill Documents | Introduced |
| Bill Request Number | 858 |
| Sponsor | J. Miller |
| Summary of Original Version | Create new sections of KRS 161.220 to 161.716 to specify that new nonuniversity members of the Teachers' Retirement System (TRS) on or after January 1, 2021, shall receive a foundational benefit component, which shall be a traditional defined benefit plan, a supplemental benefit component which shall be a plan based upon the member's account balance, and retiree health benefits; provide that the cost of the foundational benefit for these new members shall be accessed annually in the actuarial valuation; provide that if the funding level of the foundational benefit component for new nonuniversity members falls below 90 percent, the TRS board shall make one or more changes to keep employer costs within the statutory fixed rate of eight percent for the foundational benefit component, including utilizing moneys in the stabilization reserve account from any excess contributions above costs of the new plan components for new nonuniversity members, utilizing prospective mandatory employee and employer contributions from the supplemental benefit component, or adjusting the regular interest rate, benefit factor, age and service requirements to retire, or COLAs for new nonuniversity members only; establish the supplemental benefit component for new nonuniversity members who enter TRS on or after January 1, 2021, that pays benefits based upon mandatory employee and employer contributions of two percent of pay, voluntary employee and employer contributions, and interest on the accounts; provide for vesting of employer contributions after five years; provide that a new nonuniversity member may take a refund, distribution, or annuitize their account balance into a monthly payment based upon assumptions established by the TRS board; amend KRS 161.155 to provide that new nonuniversity TRS members on or after January 1, 2021, shall not have any lump-sum sick leave payments added to their foundational benefit component calculation, but may have the payment deposited into the supplemental benefit component; repeal, reenact, and amend KRS 161.220 to establish definitions for the new foundational benefit component and supplemental benefit component for new nonuniversity employees and make technical amendments to conform to a recent court decision; provide that individuals who become nonuniversity members on or after January 1, 2021, shall have a final average salary based upon their highest eight years if retiring under age 65 and the highest five years if retiring at age 65 or older; repeal, reenact, and amend KRS 161.540 to specify that new nonuniversity TRS members on or after January 1, 2021, shall contribute 14.75 percent of pay with 9 percent going to fund the foundational benefit component, 2 percent to fund the supplemental benefit component, and 3.75 percent to fund retiree health benefits; repeal, reenact, and amend KRS 161.550 to specify that the maximum employer contribution rate for new nonuniversity members on or after January 1, 2021, shall be 11.75 percent with eight percent going to fund the foundational benefit component, two percent to fund the supplemental benefit component, and 0.75 percent to fund retiree health benefits; repeal, reenact, and amend KRS 161.600 to provide that new nonuniversity members on or after January 1, 2021, shall be eligible to retire upon attaining age 65 with five years of service or age 60 with ten years of service; repeal, reenact, and amend KRS 161.620 to provide that new nonuniversity TRS members shall receive a benefit factor of 1.50 percent up to 2.4 percent based upon the member's age and years of service; amend KRS 161.675 to provide that new nonuniversity members shall not be eligible for retiree health benefits until reaching age 60; amend KRS 161.605 to provide that TRS retirees who retire on or after January 1, 2021 shall not be eligible to earn a second retirement account upon reemployment; repeal, reenact, and amend or repeal and reenact or amend KRS 61.400, 161.420, 161.470, 161.480, 161.500, 161.507, 161.515, 161.520, 161.522, 161.525, 161.545, 161.5465, 161.547, 161.548, 161.549, 161.568, 161.580, 161.585, 161.590, 161.595, 161.605, 161.612, 161.615, 161.623, 161.630, 161.655, 161.661, 161.650, 161.700, and 161.714 to make technical and conforming amendments and to conform to a recent court decision. |
| Index Headings of Original Version |
Retirement and Pensions - Teachers' Retirement System, new plan for new nonuniversity members on or after 1/1/2021 State Agencies - Teachers' Retirement System, new plan for new nonuniversity members on or after 1/1/2021 Teachers - Teachers' Retirement System, new plan for new nonuniversity members on or after 1/1/2021 |
| 03/02/20 |
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|---|---|
| 03/04/20 |
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| 03/05/20 |
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Last updated: 10/27/2020 12:10 PM (EDT)
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