| Last Action | 03/17/20: to State & Local Government (S) |
|---|---|
| Title | AN ACT relating to the Teachers' Retirement System. |
| Bill Documents |
Current/Final
Introduced |
| Fiscal Impact Statements |
Actuarial Analysis
Additional Fiscal Impact Statements Exist |
| Bill Request Number | 1970 |
| Sponsors | J. Tipton, C. Massey |
| Summary of Original Version | Create new sections of KRS 161.220 to 161.716 to specify that new university 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 university members falls below 90 percent, the TRS board shall make one or more changes to keep employer costs within the statutory fixed rate of 5.775 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 university 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 university members only; establish the supplemental benefit component for new university members who enter TRS on or after January 1, 2021, that pays benefits based upon mandatory employee and employer contributions of 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 university member may take a refund, distribution, or annuitize their account balance into a monthly payment based upon assumptions established by the TRS board; repeal, reenact, and amend KRS 161.220 to establish definitions for the new foundational benefit component and supplemental benefit component for new university employees and make technical amendments to conform to a recent court decision; specify that the high-3 final average salary provisions shall not apply to new university members who enter the system on or after January 1, 2021; repeal, reenact, and amend KRS 161.540 to specify that new university TRS members on or after January 1, 2021, shall contribute 9.775 percent of pay with 5 percent going to fund the foundational benefit component, two percent to fund the supplemental benefit component, and 2.775 percent to fund retiree health benefits; repeal, reenact, and amend KRS 161.550 to specify that the maximum employer contribution rate for new university members on or after January 1, 2021, shall be 9.775 percent with 5.775 percent going to fund the foundational benefit component, two percent to fund the supplemental benefit component, and two percent to fund retiree health benefits; conform to a recent court decision; repeal, reenact, and amend KRS 161.600 to provide that new university members on or after January 1, 2021, shall be eligible to retire upon attaining age 65 with five years of service or age 55 with ten years of service; repeal, reenact, and amend KRS 161.620 to provide that new university TRS members shall receive a benefit factor of 0.85 percent up to 1.5 percent based upon the member's age and years of service; increase the life insurance benefit for new university members on or after January 1, 2021, from $2,000 and $5,000 for active and retired respectively to $5,000 and $10,000 respectively; amend KRS 161.675 to provide that new university members shall not be eligible for retiree health benefits until reaching age 60; 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, 161.661, 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 |
Actuarial Analysis - Teachers' Retirement System, new plan for new university members on or after 1/1/2021 Retirement and Pensions - Teachers' Retirement System, new plan for new university members on or after 1/1/2021 State Agencies - Teachers' Retirement System, new plan for new university members on or after 1/1/2021 Teachers - Teachers' Retirement System, new plan for new university members on or after 1/1/2021 |
| Jump to Proposed Amendments | House Committee Substitute 1 with Fiscal Impact Statements |
| Votes | Vote History |
| 03/02/20 |
|
|---|---|
| 03/03/20 |
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| 03/09/20 |
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| 03/10/20 |
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| 03/11/20 |
|
| 03/12/20 |
|
| 03/17/20 |
|
| Amendment | House Committee Substitute 1 |
|---|---|
| Fiscal Impact Statement | Actuarial Analysis to House Committee Substitute 1 |
| Summary | Retain original provisions except to: remove requirements that new university members who enter the system on or after 1/1/2021 must be at least age 60 in order to be eligible for retiree health subsidies; amend KRS 161.220 to set the annual interest rate on the supplemental benefit component from the 30-year treasury rate to a rolling five-year treasury rate; provide that TRS shall determine the disability benefit for new university members via administrative regulation; make technical and clarifying amendments. |
| Index Headings |
Retirement and Pensions - Teachers' Retirement System, new plan for new university members on or after 1/1/2021 State Agencies - Teachers' Retirement System, new plan for new university members on or after 1/1/2021 Teachers - Teachers' Retirement System, new plan for new university members on or after 1/1/2021 Actuarial Analysis - Teachers' Retirement System, new plan for new university members on or after 1/1/2021 |
Last updated: 10/27/2020 12:10 PM (EDT)
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