KY HB1 | 2019 | Special Session


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]


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

Register now for our free OneVote public service or GAITS Professional trial account and you can begin tracking this and other legislation, all driven by the real-time data of the LegiScan API. Providing tools allowing you to research pending legislation, stay informed with email alerts, content feeds, and share dynamic reports. Use our new PolitiCorps to join with friends and collegaues to monitor & discuss bills through the process.

Monitor Legislation or view this same bill number from multiple sessions or take advantage of our national legislative search.


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


Roll Calls

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


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


Kentucky State Sources

Bill Comments