Bill > HB30

This bill amends Kentucky Retirement Systems (KRS) law to modify pension spiking provisions, specifically exempting certain salary increases from being penalized when calculating retirement benefits. The bill allows for increases in creditable compensation that are either authorized or funded by an employer's legislative or administrative body, or mandated through a collectively bargained agreement approved by the employer's legislative body, to be fully included in retirement calculations for members of the Kentucky Employees Retirement System, County Employees Retirement System, and State Police Retirement System. Currently, the law limits pension calculations by excluding any annual compensation increases over 10% in an employee's final five years of employment. The new provision creates an exception for specific types of pay raises, such as those applied uniformly across a job classification or mandated through official channels, ensuring that these systemwide or negotiated increases won't be penalized when determining an employee's retirement benefits. This change aims to provide more flexibility and fairness in how employee compensation is treated during retirement calculations, recognizing that some salary increases are standard and should not be viewed as attempts to artificially inflate retirement benefits.

Government Affairs

https://apps.legislature.ky.gov/record/25RS/hb30.html