Senate Bill 196

Actions
Last Action 03/22/24: to State & Local Government (S)
Title AN ACT relating to optional retirement benefits for hazardous duty employees participating in the County Employees Retirement System's hybrid cash balance plans.
Bill Documents Introduced
Fiscal Impact Statement Actuarial Analysis
Bill Request Number 1054
Sponsor C. McDaniel
Summary of Original Version Create a new section of KRS 78.510 to 78.852 to create an elective alternative benefit program that employers participating in the County Employees Retirement System (CERS) may adopt for employees in hazardous positions with a membership date after January 1, 2014, in the hybrid cash balance plan (Tier 3 benefits); provide that, if an employer participating in CERS makes a one-time election to provide an alternative benefit program, those eligible employees in hazardous positions may elect, in lieu of Tier 3 benefits, to participate in the alternative benefit program within one year of attaining or otherwise having 10 or more years in a hazardous position; provide that employees opting into the alternative benefit program who meet the requirements of a career hazardous employee receive Tier 3 benefits up to entering the alternative benefit program and an annual lifetime retirement benefit calculated as 2.25% of final compensation for each year of service in the alternative benefit program for participation between 20 and 25 years or 2.5% of final compensation for each year of service in the alternative benefit program for participation for 25 years or more; require that the annual actuarial valuation conducted by the CERS board include an assessment of the funding levels, unfunded liability, and actuarially required employer contribution rates for the alternative benefit program and require the CERS board to make adjustments to the alternative benefit program if it falls below 90% funded or if the employer contribution rate for the program is projected to exceed 16% of pay; require employers opting into the alternative benefit program to pay any additional actuarial costs to fund the program without any funding from employers who do not participate in the alternative benefit program; limit the alternative benefit program to Tier 3 members in CERS; provide that the General Assembly may alter the alternative program benefits, define terms for purposes of the alternative benefit program; amend KRS 78.5516 to provide that eligible employees who elect to participate in the alternative benefit program shall not contribute or be considered as contributing to the hybrid cash balance plan or receive employer pay credits, but shall receive interest credits based on their accumulated account balance in the hybrid cash balance plan; amend KRS 78.635 to require CERS employers participating in the alternative benefit program to pay an additional employer contribution to fund the program; amend KRS 78.510, 78.640, and 78.784 to conform; EFFECTIVE July 1, 2025.
Index Headings of Original Version Effective Dates, Delayed - Retirement, alternative benefit program for members in hazardous positions, July 1, 2025
Firefighters and Fire Departments - County Employees Retirement, alternative benefit program for CERS members in hazardous positions
Peace Officers and Law Enforcement - County Employees Retirement, alternative benefit program for CERS members in hazardous positions
Police, City and County - County Employees Retirement, alternative benefit program for CERS members in hazardous positions
Retirement and Pensions - County Employees Retirement, alternative benefit program for CERS members in hazardous positions
Actuarial Analysis - County Employees Retirement, alternative benefit program for CERS members in hazardous positions

Actions

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02/12/24
  • introduced in Senate
  • to Committee on Committees (S)
03/22/24
  • to State & Local Government (S)


Last updated: 5/7/2024 1:36 PM (EDT)