Bill > HB484

Introduced Session

Create a new section of KRS 61.510 to 61.705 to specify contents/intent of bill which includes transferring the administration of the County Employees Retirement System (CERS) from the Kentucky Retirement Systems (KRS) Board of Trustees to the CERS board of trustees established by the Act; provide that the administration of the Kentucky Employees Retirement System (KERS) and the State Police Retirement System (SPRS) shall continue to be the responsibility of the KRS Board of Trustees; provide that the Kentucky Public Pensions Authority (KPPA) established by the Act shall provide personnel needs, day-to-day administrative duties, and other duties for the KRS Board of Trustees and the CERS Board of Trustees; and to provide that it is the intent of the General Assembly in the 2021 Regular Session to enact legislation to create separate statutory benefit structures for KRS and CERS while retaining shared statutes that relate to administrative provisions that will be the responsibility of the KPPA; create a new section of KRS Chapter 61 to establish the KPPA membership, duties, and powers; provide that membership shall include 4 KRS board members, 4 CERS board members; provide that effective April 1, 2021, KRS staff shall become the staff of the KPPA to serve the needs of both the KRS and CERS boards; provide that effective July 1, 2021, staff of the KPPA shall be transferred into a personnel system administered by the KPPA; provide that the KPPA shall not be subject to reorganization by the Governor; create a new section of KRS 78.510 to 78.852 to establish CERS Board composition with powers/duties/reporting requirements similar to the KRS Board in KRS 61.645; provide that the CERS board shall not be subject to reorganization by the Governor; amend KRS 61.645 to remove CERS representation from the KRS board and to establish a new 9 member KRS Board who will administer KERS and SPRS; provide that the KERS board shall not be subject to reorganization by the Governor; amend KRS 78.790 to establish a CERS Investment Committee and requirements for an investment procurement policy by the CERS board; create new sections of KRS 78.510 to 78.852 to add in actuarial valuation requirements/experience study requirements/reporting requirements of actuarial data and reports for the newly created CERS board and the process for the CERS board to determine employer contribution rates; amend KRS 11A.010, 11A.201, and 11A.236 to add the CERS Board and the KPPA to the Executive Branch Code of Ethics requirements; amend KRS 66.400 to provide that no municipality may file bankruptcy if it is in default or delinquent in paying contributions to CERS; amend KRS 61.701 to establish a CERS insurance trust fund for retiree health benefits separate from the KRS insurance trust fund and to move CERS funds in the KRS insurance trust fund to the CERS insurance trust fund; amend KRS 78.535 to add in KRS 61.522 provisions regarding employer cessation of participation for CERS and to provide that the CERS Board shall determine the cost of ceasing participation; amend KRS 78.540 to add in provisions of KRS 61.535 and 61.550 relating to when membership ceases that were previously cross-referenced in KRS 78.545; amend KRS 78.625 to add in employer reporting provisions that were included in KRS 61.675 for KERS employers and were previously cross-referenced via KRS 78.545; make technical amendments; amend KRS 78.852 to restore language in the statutes due to a recent court decision and to provide that CERS employers are responsible for funding CERS obligations; amend KRS 6.350, 7A.250, 18A.205, 18A.225, 42.276, 42.728, 61.510, 61.522, 61.535, 61.552, 61.555, 61.592, 61.637, 61.650, 61.670, 61.702, 64.475, 64.640, 70.293, 78.510, 78.530, 78.545, 78.610, 78.615, 95.022, and 95.290 to conform, make technical and clarifying amendments to provide the same authorities to the CERS board as provided the KRS board and to restore language in the statutes due to a recent court decision; repeal KRS 78.533, 78.534, 78.532, 78.542, and 78.780; establish noncodified language toprovide that decisions made by the KRS Board on behalf of CERS will stand and shall not be reversed except under authority granted by KRS 78.510 to 78.852; provide that the 3 elected CERS trustees serving/elected to the KRS board on April 1, 2021, shall be the 3 elected trustees of the new CERS Board; provide that the 2 elected KERS trustees and 1 SPRS trustee serving/elected to the KRS Board on April 1, 2021, shall continue to serve on the newly amended KRS Board; provide that the Governor shall make the initial appointments to the new KRS and CERS Board by March 1, 2021; provide that the Governor shall not reorganize the KRS board prior to the new boards being established; specify that no provision of this Act shall increase or decrease benefits; specify that no provision of this Act shall limit the General Assembly’s authority held prior to the Act; confirm the CERS board election process passed in 2019 to synchronize elections; provide that the effective date of Sections 1 to 46 of this Act shall be April 1, 2021.

AI Summary

Committee Categories

Russell Webber (R)*,  Kim Banta (R),  John Blanton (R),  Tina Bojanowski (D),  Kevin Bratcher (R),  George Brown (D),  Thomas Burch (D),  Myron Dossett (R),  Larry Elkins (R),  Deanna Frazier Gordon (R),  Chris Freeland (R),  Chris Fugate (R),  Jim Gooch (R),  David Hale (R),  Mark Hart (R),  Richard Heath (R),  Samara Heavrin (R),  Cluster Howard (D),  Thomas Huff (R),  Joni Jenkins (D),  Scott Lewis (R),  Savannah Maddox (R),  C. Edward Massey (R),  Bobby McCool (R),  Michael Meredith (R),  Russ Meyer (D),  Jason Nemes (R),  Phillip Pratt (R),  Melinda Prunty (R),  William Reed (R),  Rob Rothenburger (R),  Bart Rowland (R),  Steven Rudy (R),  Sal Santoro (R),  John Sims (D),  Walker Thomas (R),  Ken Upchurch (R),  Charles Wheatley (D),  Les Yates (R), 

signed by Governor (Acts ch. 79) (on 04/07/2020)

Official Document