HB 554 — AN ACT relating to retiree health provisions of the Kentucky Retirement Systems.

Summary

Amend KRS 61.702, relating to the Kentucky Employees Retirement System and the State Police Retirement System, to increase the hazardous duty under age 65 retiree health subsidy to $50 per month for each year of service, respectively, for those members who meet the "career threshold" who began participating in the system on or after July 1, 2003, and who are eligible for a fixed-dollar retiree health subsidy not tied to the premium; extend the employee contribution used to fund retiree health benefits to include hazardous duty members who began participating in the system on or after July 1, 2003, and increase the current hazardous employee contribution rate to 2% of pay for those eligible for the fixed-dollar retiree health subsidy; make technical amendments regarding the retiree health premium reimbursement program to conform to current policy; provide that the amendments to the employee contributions shall be effective July 1, 2027; for calculation of the retiree health subsidy increase, provide that the change shall apply to service earned prior to the effective date of this Act by eligible members, including retirees, and shall prospectively be adjusted annually by the 1.5% increase currently provided in statute; provide that subsidies payable to impacted retirees shall begin on or after January 1, 2027, to coincide with the next health plan year; direct the Public Pension Oversight Board to continue to review the retiree health fund actuarial data and evaluate potential legislative options to address any future continued improvements in the funds.

Bill Text

• Introduced View text Current pdf

Compared against the Kentucky Revised Statutes as published AI-generated reading aid — verify against the official bill.

The bill amends KRS 61.702 to include provisions for the treatment of Medicare-eligible recipients and clarifies coverage for retired police officers.

• KRS 61.702

  individuals who are eligible, pursuant to this subdivision, to be included in the Kentucky Employees Health Plan as provided by KRS 18A.225 to 18A.2287 may be rated as a separate class from other eligible employees and retirees for the purpose of determining medical insurance premiums. → Individuals who are eligible, pursuant to this subdivision, to be included in the Kentucky Employees Health Plan as provided by KRS 18A.225 to 18A.2287 may be rated as a separate class from other eligible employees and retirees for the purpose of determining medical insurance premiums.

  Clarifies how the insurance premiums for those eligible for the Kentucky Employees Health Plan will be determined.

• KRS 61.702

  The system shall continue to provide the same hospital and medical insurance plan coverage for recipients and qualifying dependents after the age of sixty-five (65) as before the age of sixty-five (65), if: a. The recipient is not eligible for Medicare coverage; or b. The recipient would otherwise be eligible for Medicare coverage but is subject to the Medicare Secondary Payer Act under 42 U.S.C. sec. 1395y(b) and has been reemployed by a participating agency which offers the recipient a hospital and medical insurance benefit or by a participating agency which is prevented from offering a hospital and medical benefit to the recipient as a condition of reemployment under KRS 70.293, 95.022, or 164.952.

  Ensures that certain retirees over sixty-five continue to receive the same health insurance benefits they had before turning sixty-five.

Action History

1. February 10, 2026

   to State Government (H)

2. February 03, 2026

   to Committee on Committees (H)

3. February 03, 2026

   introduced in House

Sponsors

• Timmy Truett · Primary
• Kim King · Primary
• Chris Fugate · Primary

Subjects