Kentucky Senate Bill 2 (Prior Session Legislation)

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Spectrum: Partisan Bill (Republican 5-0)
Status: Engrossed on February 14 2011 - 50% progression, died in committee
Action: 2011-02-15 - to State Government (H)
Pending: House State Government Committee
Text: Latest bill text (Draft #2) [MS Word]

Create a new section of KRS 21.345 to 21.580 to close the Legislators' Retirement Plan and the Judicial Retirement Plan to new members effective July 1, 2012, and to prohibit legislators and judges who take office on or after the effective date of this Act from participating in a retirement system for their service as a legislator or judge if the individual is retired and receiving a benefit from a state-administered retirement system; create a new section of KRS 21.345 to 21.580 to allow members of the Legislators' Retirement Plan and the Judicial Retirement Plan with less than 5 years of service to transfer their membership and account balance to the Public Employees Retirement System; create a new section of KRS 61.510 to 61.705 to close the Kentucky Employees Retirement System, the County Employees Retirement System, and the State Police Retirement System to new members effective July 1, 2012, and to prohibit retired members of other state-administered retirement systems from contributing to these systems or the Public Employees Retirement System if they are reemployed on or after the effective date of this Act; create a new section of KRS 61.510 to 61.705 to allow members of the Kentucky Employees Retirement System, County Employees Retirement System, and the State Police Retirement System, with less than 5 years of service to transfer their membership and account balance to the Public Employees Retirement System; create KRS Chapter 61A to establish the Public Employees Retirement System, a defined contribution plan administered by the board of the Kentucky Retirement Systems for new employees hired by a participating agency in the retirement systems closed under the provisions of this Act; establish administrative requirements of the Public Employees Retirement System and authorize the board to establish or amend existing plans or to contract with the Kentucky Deferred Compensation Authority for administration of the plans; establish eligibility for membership in the Public Employees Retirement System; provide that individual agencies may establish additional defined contributions with matching contributions for reemployed retirees not eligible to participate in the Public Employees Retirement System; establish matching employer contributions of 5% for non-hazardous employees and 8% for hazardous employees contributing to the Public Employees Retirement System and vesting rules for employer contributions; establish the State Treasurer as custodian of the Public Employees Retirement System; require that each employer shall contribute to the Public Employees Retirement System the amount that is otherwise contributed for employees still participating in the closed systems and to provide that the contributions shall be distributed to fund benefits and expenses of the Public Employees Retirement System and to pay off unfunded liabilities of the closed systems; cross-reference statutes pertaining to the Kentucky Employees Retirement System related to the Kentucky Retirement Systems board, investment committee, employer duties, confidentiality of member accounts, correction of errors in records, and statements made under oath; allow the General Assembly to suspend or reduce benefits provided under the Public Employees Retirement System; establish minimum line-of-duty disability and death benefits for members of the Public Employees Retirement Systems of 25% of pay to the member or deceased member's spouse and 10% for each dependent child and require the systems to contract with a insurance company duly licensed in the state of Kentucky for administration; authorize the board to establish retiree health coverage for members and beneficiaries upon retirement or in-the-line-of-duty disablement or death and to establish a benefit of $10 per month for non-hazardous employees and $15 per month for hazardous employees; amend KRS 6.515 and 21.370 to increase the cost of purchasing active duty military service to the full actuarial cost for members of the Legislators' Retirement Plan and the Judicial Retirement Plan; prohibitservice purchases made on or after the effective date of this Act in the Legislators' Retirement Plan and the Judicial Retirement Plan from being used to vest for retiree health benefits; require service purchased on or after the effective date of this Act in the Legislators' Retirement Plan and the Judicial Retirement Plan to assume the earliest retirement date and cost of living adjustments in determining the appropriate actuarial cost and allow service in the Public Employees Retirement System to be used for determining eligibility for retirement in the Legislators' Retirement Plan but not the amount of benefits; amend KRS 6.525 to prohibit salary earned in another state administered system from being used to determine benefits in the Legislators' Retirement Plan if the member does not have service in the other state-administered retirement systems prior to the effective date of this Act; amend KRS 61.645 to provide a process for members of the Public Employees Retirement System to vote for existing elected trustees of the Kentucky Retirement Systems board and to make conforming changes; amend KRS 61.650 to establish the board of the Kentucky Retirement Systems as trustee of the Public Employees Retirement System; amend KRS 61.675 to establish employer reporting requirements for the Public Employees Retirement System; amend KRS 61.680 and 161.607 to allow service in the Public Employees Retirement System to be used for determining eligibility for retirement but not the amount of benefits; amend KRS 16.520, 16.645, 61.525, 61.645, 61.650, 61.675, 78.540, and 78.545 to conform; require the board of the Public Employees Retirement System to provide an update on the plan, including any legal issues involving state or federal law, to the Interim Joint Committee on State Government no later than October 31, 2011.

AN ACT relating to retirement.

Sen. Joe Bowen [R]	Sen. Alice Kerr [R]	Sen. Damon Thayer [R]	Sen. Jack Westwood [R]
Sen. David Williams [R]

Date	Chamber	Action
2011-02-15		to State Government (H)
2011-02-14		received in House
2011-02-11		3rd reading, passed 24-13 with Committee Substitute (2), committee amendment (1)
2011-02-11		posted for passage in the Regular Orders of the Day for Friday, February 11, 2011
2011-02-11		reported favorably, to Rules with Committee Substitute (2), committee amendment (1)
2011-02-02		recommitted to State & Local Government (S)
2011-02-01		passed over and retained in the Orders of the Day
2011-01-07		passed over and retained in the Orders of the Day
2011-01-07		posted for passage in the Regular Orders of the Day for Friday, January 7, 2011
2011-01-07		reported favorably, to Rules with Committee Substitute
2011-01-05		returned to State & Local Government (S)
2011-01-05		2nd reading
2011-01-05		taken from State & Local Government (S)
2011-01-04		returned to State & Local Government (S)
2011-01-04		1st reading
2011-01-04		taken from State & Local Government (S)
2011-01-04		to State & Local Government (S)
2011-01-04		introduced in Senate

Type	Source
Summary	http://www.lrc.ky.gov/record/11RS/SB2.htm
Text	http://www.lrc.ky.gov/record/11RS/SB2/bill.doc