HB 135

Bill Subjects

Abstract

Create a new section of KRS 16.505 to 16.652 to change the retirement benefits for members participating in the State Police Retirement System (SPRS) or in a hazardous position in either the Kentucky Employees Retirement System (KERS) or County Employees Retirement System (CERS) who are hired after January 1, 2014, but before January 1, 2023, so that, in lieu of continued participation in the hybrid cash balance plan (Tier 3 benefits), these members receive the benefits provided to members in a hazardous position who began participating immediately prior to January 1, 2014 (Tier 2 benefits); for members participating in a hazardous position who are subject to a change from Tier 3 to Tier 2 benefits, presume that service credit in a hazardous duty position earned after January 1, 2014, is service credit earned immediately prior to January 1, 2014, and require that accumulated contributions remain in the member’s account, although any employer credit will be transferred to the retirement allowance account; allow a member participating in a hazardous position subject to a change from Tier 3 to Tier 2 benefits to make a one-time election to opt out of the change of benefits, to be made for an actively employed member, no later than January 31, 2023, or for a member returning to a qualified position, within 30 days of returning to employment; establish exclusions; amend KRS 16.576, 16.577, and 78.5514 to allow a new member who begins participating in SPRS or in a hazardous position in KERS or CERS on or after January 1, 2023, or a member who is eligible under Section 1 of the Act, to calculate retirement allowance using the same benefit factors and service credit as those members in a hazardous position who began participating immediately prior to January 1, 2014 (Tier 2 members); amend KRS 16.583 and 78.5516 to limit the hybrid cash balance plan (Tier 3 benefits) only to members participating in SPRS or in hazardous positions in KERS or CERS who make an election to opt out of Tier 2 benefits under Section 1 of the Act or who make an election, prior to the effective date of the Act, under KRS 61.5955; amend KRS 61.5955 to provide that only a member in a nonhazardous position who began participating in KERS or CERS as a Tier 2 member may elect to receive Tier 3 benefits in the hybrid cash balance plan in lieu of Tier 2 benefits; amend KRS 16.505, 61.510, and 78.510 to amend definitions of various terms to conform and make technical changes; amend KRS 16.560, 61.575, and 78.640 to allow interest credited on the accounts of members participating in SPRS or in a hazardous position in KERS or CERS to be adjusted to conform; amend KRS 16.578 to allow a beneficiary of a member participating in SPRS or in a hazardous position in KERS or CERS who begins participating on or after January 1, 2023, or who is eligible under Section 1 of the Act, to receive the same death benefits as a Tier 2 member; amend KRS 16.582 and 78.5524 to allow a member participating in SPRS or in a hazardous position in KERS or CERS who begins participating on or after January 1, 2023, or who is eligible under Section 1 of the Act to receive the same disability benefits as a Tier 2 member; amend KRS 61.546 and 78.616 to allow a member participating in SPRS or in a hazardous position in KERS who begins participating on or after January 1, 2023, or who is eligible under Section 1 of the Act, to receive the same service credit for unused sick leave as a Tier 2 member; amend KRS 61.552 to allow a member participating in SPRS or in a hazardous position in KERS or CERS, who begins participating on or after January 1, 2023, or who is eligible under Section 1 of the Act, who is also vested, to purchase service credit; amend KRS 61.597 and 78.5512 to permit early retirement from both the Tier 2 and Tier 3 plans for a member eligible for Tier 2 hazardous benefits under Section 1 of the Act, who also has nonhazardous service credit as a Tier 3 member of either KERS or CERS; amend KRS 61.615 and 78.5528 to allow, if a disability retirement allowance is reduced or discontinued, for a member participating in SPRS or in a hazardous position in KERS or CERS who begins participating on or after January 1, 2023, or who is eligible under Section 1 of the Act, to apply for early retirement benefits as provided for and subject to the same limitations as Tier 2 members; amend KRS 61.680 to require that a member who is eligible under Section 1 of the Act and who has nonhazardous service credit as a Tier 3 member of either KERS or CERS to have his or her nonhazardous and hazardous service consolidated to determine eligibility and benefits; amend KRS 78.545 to add Section 1 of this Act as one of the provisions that shall be administered for the CERS in the same manner as for the KERS.