House Bill 8

Actions | Amendments
Last Action 03/23/21: signed by Governor (Acts Ch. 83)
Title AN ACT relating to the Kentucky Employees Retirement System's employers, declaring an emergency, and making an appropriation therefor.
Bill Documents Acts Chapter 83
Current/Final
Introduced
Fiscal Impact Statements Actuarial Analysis
Fiscal Note
Additional Fiscal Impact Statements Exist
Bill Request Number 424
Sponsors J. DuPlessis, S. Heavrin, C. Massey, S. Sheldon, J. Tipton
Summary of Original Version Amend KRS 61.565 to change the Kentucky Employees Retirement System's (KERS) nonhazardous actuarially accrued liability contribution (unfunded liability payment) that is payable by employers on or after July 1, 2021, from a value that is paid as a percent of pay on each employee to a set dollar amount; provide that the set dollar amount shall be allocated to each individual employer based upon the employer's percent share of the liability as of the June 30, 2019, actuarial valuation and shall be paid by employers in equal installments monthly; provide criteria for when adjustments to the dollar value and percent share may occur; provide that a single amount shall be determined for state agencies in the legislative, executive, and judicial branch who participate in KERS; provide that a KERS employer may charge the cost as a percent of pay for purposes of collecting contributions but shall be responsible to provide the full set dollar amount owed; provide that if a KERS employer merges, splits, separates, or establishes a new agency, the systems shall have full authority to allocate the costs to any employer or entity that results from the split, separation, or establishment of a new agency; amend KRS 61.510 to modify the definition of “level percentage of payroll amortization method” to conform to the amendments in KRS 61.565; amend KRS 212.792 to specify the allocation of retirement costs as provided by the bill in the event an independent health district ceases to exist or has a county to withdraw from the district; provide that the Kentucky Retirement Systems shall amend the actuarial valuation in accordance with the amendments to KRS 61.565 in this Act and provide updated employer contributions to the Governor and General Assembly; APPROPRIATION; EMERGENCY.
Index Headings of Original Version Effective Dates, Emergency - Retirement, KERS employer rates
Retirement and Pensions - Kentucky Retirement Systems, liability-based contributions for KERS employers
State Agencies - Kentucky Retirement Systems, liability-based contributions for KERS employers
Actuarial Analysis - Kentucky Retirement Systems, liability-based contributions for KERS employers
Appropriations - Kentucky Retirement Systems, liability-based contributions for KERS employers
Jump to Proposed Amendments House Committee Substitute 1 with Fiscal Impact Statements
Senate Committee Substitute 1 with Fiscal Impact Statements
Senate Floor Amendment 1
Senate Floor Amendment 2
Senate Floor Amendment 3
Votes Vote History

Actions

Top | Amendments
12/10/20
  • Prefiled by the sponsor(s).
01/05/21
  • introduced in House
  • to Committee on Committees (H)
01/13/21
  • to State Government (H)
02/02/21
  • posted in committee
02/04/21
  • reported favorably, 1st reading, to Calendar with Committee Substitute (1)
02/09/21
  • 2nd reading, to Rules
  • posted for passage in the Regular Orders of the Day for Wednesday, February 10, 2021
02/10/21
  • 3rd reading, passed 88-0 with Committee Substitute
  • received in Senate
02/24/21
  • to Appropriations & Revenue (S)
02/25/21
  • taken from Appropriations & Revenue (S)
  • 1st reading
  • returned to Appropriations & Revenue (S)
02/26/21
  • taken from Appropriations & Revenue (S)
  • 2nd reading
  • returned to Appropriations & Revenue (S)
03/03/21
  • reported favorably, to Rules with Committee Substitute (1)
  • posted for passage in the Regular Orders of the Day for Thursday, March 4, 2021
  • floor amendments (1) and (2) filed to Committee Substitute
03/04/21
  • passed over and retained in the Orders of the Day
  • floor amendment (3) filed to Committee Substitute
03/05/21
  • 3rd reading
  • floor amendments (1) and (2) withdrawn
  • passed 34-0 with Committee Substitute and floor amendment (3)
03/11/21
  • received in House
  • to Rules (H)
  • posted for passage for concurrence in Senate Committee Substitute and floor amendment (3)
  • House concurred in Senate Committee Substitute and floor amendment (3)
  • passed 94-0
03/12/21
  • enrolled, signed by Speaker of the House
  • enrolled, signed by President of the Senate
  • delivered to Governor
03/23/21
  • signed by Governor (Acts Ch. 83)

Proposed Amendments

Top | Actions
Amendment House Committee Substitute 1
Fiscal Impact Statement Actuarial Analysis to House Committee Substitute 1
Summary Retain original provisions except to further amend KRS 61.565 and replace amendments to KRS 212.792 with a new section of KRS Chapter 212 to specify how Kentucky Employees Retirement System (KERS) retirement costs are allocated if a district health department ceased to operate or has a county or counties withdraw from the district; provide that the allocation of KERS costs shall be based upon the withdrawing county's proportion of taxable property in the district health department; require the Dept. for Public Health to provide certification of taxable property to the retirement system; provide that the Kentucky Retirement Systems (KRS) may allocate costs for any district health department who ceases to operate prior to the effective date of the Act. APPROPRIATION. EMERGENCY.
Index Headings Effective Dates, Emergency - Retirement, KERS employer rates
Retirement and Pensions - Kentucky Retirement Systems, liability-based contributions for KERS employers
State Agencies - Kentucky Retirement Systems, liability-based contributions for KERS employers
Actuarial Analysis - Kentucky Retirement Systems, liability-based contributions for KERS employers
Appropriations - Kentucky Retirement Systems, liability-based contributions for KERS employers

Amendment Senate Committee Substitute 1
Fiscal Impact Statements Actuarial Analysis to Senate Committee Substitute 1
Fiscal Note to Senate Committee Substitute 1
Summary Retain original provisions; amend KRS 61.565 to establish an appeals process beginning July 1, 2021, with a final determination by December 31, 2021, regarding the assignment of liabilities to each Kentucky Employees Retirement System (KERS) employer and any potential errors in assignment based upon the last participating employer or university employees who are providing services to the state through a contract between the university and the state; amend KRS 61.522 to provide that the discount rate for universities who voluntary cease participating in KERS with the soft freeze option and pay by lump-sum shall be 5.25%; amend KRS 61.675 to provide that if a KERS nonhazardous employer is delinquent for 90 days or more in making the required employer contributions on or after July 1, 2021, the systems: shall not allow future service credit accruals by the employer's employees until such time payments are up to date; may file action in Franklin Circuit Court to collect delinquent employer contributions; and shall notify the Finance & Administration Cabinet who may choose to withhold state appropriations to the employer until such time the contributions are made; create a new section of KRS 61.510 to 61.705 to: require certain quasi-governmental employers participating KERS to report the use of contracted or leased employees to the system and to require the system to report the compiled data annually to the state budget director and the Legislative Research Commission; provide system with authority to audit an employer to verify the use of contracted/leased employees; provide intent language that provides future appropriations to help subsidize retirement costs for these employers based upon process of bringing contracted/leased employees back into KERS; specify factors that may result in loss of subsidy; make technical and clarifying corrections.APPROPRIATION. EMERGENCY.
Index Headings Effective Dates, Emergency - Retirement, KERS employer rates
Retirement and Pensions - Kentucky Retirement Systems, liability-based contributions for KERS employers
State Agencies - Kentucky Retirement Systems, liability-based contributions for KERS employers
Actuarial Analysis - Kentucky Retirement Systems, liability-based contributions for KERS employers
Appropriations - Kentucky Retirement Systems, liability-based contributions for KERS employers
Fiscal Note - Kentucky Retirement Systems, liability-based contributions for KERS employers

Amendment Senate Floor Amendment 1
Sponsor W. Westerfield
Summary Amend to provide that if quasi-state government agencies in the Kentucky Employees Retirement System (KERS) receive a state subsidy to help pay retirement costs in FY 2021-2022, and the subsidy decreases in future fiscal years, their actuarially accrued liability contribution shall be reduced on a dollar for dollar basis and any resulting reduction shall be paid by the executive branch. APPROPRIATION. EMERGENCY.
Index Headings Effective Dates, Emergency - Retirement, KERS employer rates
Fiscal Note - Kentucky Retirement Systems, liability-based contributions for KERS employers
Retirement and Pensions - Kentucky Retirement Systems, liability-based contributions for KERS employers
State Agencies - Kentucky Retirement Systems, liability-based contributions for KERS employers
Actuarial Analysis - Kentucky Retirement Systems, liability-based contributions for KERS employers
Appropriations - Kentucky Retirement Systems, liability-based contributions for KERS employers

Amendment Senate Floor Amendment 2
Sponsor W. Westerfield
Summary Amend KRS 61.565 to provide that community mental health centers may appeal retirement costs assigned to them in the bill for situations where the centers have hired employees to provide services to the executive branch via a contract with the executive branch or are contracted to provide services at facilities previously operated by the executive branch. APPROPRIATION. EMERGENCY.
Index Headings Effective Dates, Emergency - Retirement, KERS employer rates
Fiscal Note - Kentucky Retirement Systems, liability-based contributions for KERS employers
Retirement and Pensions - Kentucky Retirement Systems, liability-based contributions for KERS employers
State Agencies - Kentucky Retirement Systems, liability-based contributions for KERS employers
Actuarial Analysis - Kentucky Retirement Systems, liability-based contributions for KERS employers
Appropriations - Kentucky Retirement Systems, liability-based contributions for KERS employers

Amendment Senate Floor Amendment 3
Sponsor C. McDaniel
Summary Amend KRS 61.565 relative to the appeals process for assigning liabilities to employers: provide that all employers, not just universities, may appeal retirement costs assigned to them in the bill for situations where the employers have hired employees to provide services to the executive branch via a contract with the executive branch or are contracted to provide services at facilities previously operated by the executive branch; provide that costs that shall be paid by the executive branch for these contracted employees shall begin July 1, 2022; require reporting to the Public Pension Oversight Board on the appeals process results; amend new section of KRS Chapter 61 (Section 7) regarding reporting and potential subsidies to certain quasi-state employers in the Kentucky Employees Retirement System (KERS) to adjust list of agencies who are exempt from potential subsidies to help pay retirement costs; provide that subsidies shall be offset by changes occurring in the appeal process in KRS 61.565; make technical amendments; EMERGENCY; APPROPRIATION.
Index Headings Effective Dates, Emergency - Retirement, KERS employer rates
Retirement and Pensions - Kentucky Retirement Systems, liability-based contributions for KERS employers
State Agencies - Kentucky Retirement Systems, liability-based contributions for KERS employers
Appropriations - Kentucky Retirement Systems, liability-based contributions for KERS employers

Last updated: 5/18/2021 11:08 AM (EDT)
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