On The Floor

Ky. House passes pension bill for quasi-governmental agencies

The Kentucky House passes a pension relief bill for county health departments and other quasi-governmental agencies in a 52-46 vote Monday, July 22.

What's in the bill?

House Bill 1, sponsored by Rep. James Tipton, aims to freeze pension contribution rates for health departments and other quasi-governmental agencies at the current rate of 49% of their annual payroll. This rate freeze will be in effect for one fiscal year ending June 30, 2020. HB 1 also provides an option for these agencies to leave the state pension system by paying their liabilities in a lump sum or installments. Agencies that leave the system can choose whether or not to allow their Tier 1 and Tier 2 employees to continue participation in the system. Agencies that are more than 90 days late with installment payments will cause a lapse in accrued benefits and/or service credit for their employees until payments are current.

Who does the bill affect?

This bill affects local health departments, regional state universities and community colleges, community mental health centers, rape crisis centers, domestic violence shelters, child advocacy centers and other quasi-governmental agencies who participate in the non-hazardous Kentucky Employee Retirement System (KERS).

What happens next?

The 2019 Special Session will continue as HB 1 now goes to the state Senate. The Senate received the bill Monday afternoon and will likely vote on the bill Wednesday. If it passes the Senate, the bill will become law upon the Governor's signature and be retroactively in effect July 1, 2019.

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