KY HB1 | 2019 | Special Session

Status

Completed Legislative Action
Spectrum: Partisan Bill (Republican 1-0)
Status: Passed on July 24 2019 - 100% progression
Action: 2019-07-24 - signed by Governor (Acts ch. 1)
Text: Latest bill text (Engrossed) [PDF]

Summary

Amend KRS 61.522 to provide a one-time window where quasi-governmental agencies may voluntarily cease participation in the Kentucky Employees Retirement System (KERS) effective June 30, 2020, for nonhazardous employees by paying the actuarial costs of ceasing participation by lump-sum or installments; provide that an eligible KERS employer may request an estimate of the cost of ceasing participation in the system; provide that a ceasing quasi-governmental employer may elect to allow current employees who entered KERS prior to 1/1/2014 (Tier I and II employees), to continue to participate in the system after June 30, 2020, by paying the additional actuarial costs; provide that employees of the ceasing employer who are no longer participating in KERS shall participate in a defined contribution plan established by the employer; vary assumed rate of return/discount rate used to determine cessation costs from 3% to 4.5% based upon employers decisions regarding payment type (lump-sum vs. installments) and whether or not the employer allows Tier I and II employees to participate in KERS after June 30, 2020; require lump-sum payments for ceasing participation to be paid within one year; establish a maximum installment period of 30 years with interest at the assumed rate of return; establish installment payment amounts that are the higher of FY 2019-2020 employer contributions or the amount determined by multiplying 49.47% of pay by annual average payroll over prior 60 months in which contributions were paid and increasing the dollar value by 1.5% annually, except that if an employer cannot pay off its costs within 30 years and has elected for its Tier I and II employees to continue participating in KERS after June 30, 2020, the base payment amount will be adjusted to ensure payment within 30 years; provide that KERS quasi-governmental agencies receiving General Fund assistance to pay the higher employer rates will continue to receive the assistance until all costs are paid; amend KRS 61.675 to provide that if a KERS employer has elected to pay the costs of ceasing participation by installments and is delinquent for 90 days or more in making payments, the systems: shall not allow future service credit accruals if the employer's employees are participating in the system after the cessation date until such time payments are up to date; may file action in Franklin Circuit Court to collect delinquent funds; and shall notify the Finance & Administration Cabinet who may choose to withhold state appropriations to the ceasing employer until such time the payments are made; amend KRS 18A.225 and 18A.205 to provide that a ceasing KERS employer who participated in the state health and life insurance plans prior to ceasing participation may continue to participate in the plans after ceasing participation; provide that a ceasing KERS employer under subsection (8) of Section 1 of this Act may finance costs including financing the costs through bond issues; provide that the KERS employer contribution rate shall be 49.47% of pay in FY 2019-2020, retroactive to July 1, 2019, for Regional Mental Health Programs, Local and District Health Departments, domestic violence shelters, rape crisis centers, child advocacy centers, state-supported universities and community colleges, and any other agency eligible to voluntarily cease participating in the Kentucky Employees Retirement System pursuant to KRS 61.522; include nonseverability provisions; EMERGENCY.

Tracking Information

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Title

AN ACT relating to the Kentucky Employees Retirement System and declaring an emergency.

Sponsors


Roll Calls

2019-07-22 - House - House: Third Reading RCS# 5 (Y: 52 N: 46 NV: 0 Abs: 2) [PASS]

History

DateChamberAction
2019-07-24Senatesigned by Governor (Acts ch. 1)
2019-07-24Senatedelivered to Governor
2019-07-24Senateenrolled, signed by President of the Senate
2019-07-24Senatereceived in Senate
2019-07-24Houseenrolled, signed by Speaker of the House
2019-07-24Housereceived in House
2019-07-24Senatepassed 27-11
2019-07-24Senatefloor amendments (1) (2) and (3) defeated
2019-07-24Senate3rd reading
2019-07-23Senatefloor amendments (1) (2) and (3) filed
2019-07-23Senateposted for passage in the Regular Orders of the Day for Wednesday, July 24, 2019
2019-07-23Senatereported favorably, 2nd reading, to Rules
2019-07-22Senateto State & Local Government (S)
2019-07-22Senatereturned to Committee on Committees (S)
2019-07-22Senate1st reading
2019-07-22Senatetaken from Committee on Committees (S)
2019-07-22Senateto Committee on Committees (S)
2019-07-22Senatereceived in Senate
2019-07-22Housebill passed 52-46
2019-07-22Housefloor amendment (1) ruled out of order
2019-07-22Housefloor amendments (2) and (3) ruled not germane to the Governor's Call
2019-07-22House3rd reading
2019-07-22Housefloor amendment (4) filed
2019-07-20Houseposted for passage in the Regular Orders of the Day for Monday, July 22, 2019
2019-07-20Housefloor amendments (1), (2) and (3) filed
2019-07-20Housereported favorably, 2nd reading, to Rules
2019-07-19Houseposted in committee
2019-07-19Housereturned to State Government (H)
2019-07-19House1st reading
2019-07-19Housetaken from State Government (H)
2019-07-19Houseto State Government (H)
2019-07-19Houseintroduced in House

Subjects


Kentucky State Sources


Bill Comments

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