Kentucky 2026 Regular Session Status: Enacted 2 R cosponsors

SB 85 — AN ACT relating to designating a special needs trust to receive state-administered retirement benefits.

Last action — signed by Governor (Acts Ch. 18)

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced January 13, 2026. Enacted.

Signed by Governor Andy Beshear (Democratic) on April 03, 2026.

Odds of enactment

High chance

Based on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Likely to advance 74% · moderate confidence

  • Enacted

    Current position in the legislative process.

  • 2 sponsors

    2 primary, 0 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (2 R).

  • Cleared a recorded vote

    Passed 2 recorded votes so far.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

Summary

Amend KRS 16.505, 61.510, and 78.510 to define "special needs trust" (SNT) for purposes of the State Police Retirement System, Kentucky Employees Retirement System, and County Employees Retirement System; amend the definition of "beneficiary" to include a SNT; amend KRS 16.578 to allow a SNT to receive a lifetime retirement payment if a member dies before retirement; amend KRS 61.635 to allow a person who is the beneficiary of a SNT to be designated as the beneficiary of a lifetime retirement benefit; require the trustee of a SNT to notify the Kentucky Public Pensions Authority (KPPA) upon the death of the beneficiary of a SNT and repay any payment not properly payable to the SNT; allow KPPA to promulgate administrative regulations to administer the SNT provisions; amend KRS 61.640 to allow a SNT to receive a lifetime retirement payment if a member dies before retirement; amend KRS 61.690 to allow a recipient or legal representative to direct retirement benefits to be paid to a SNT and clarify that it is not an assignment or transfer; amend KRS 78.5532 to allow a SNT to receive a lifetime retirement benefit if a member dies before retirement; amend KRS 161.525, relating to the Teachers' Retirement System (TRS) to allow a SNT to receive a lifetime annuity if a member dies before retirement; amend KRS 161.640 to allow checks to be sent by mail to the trustee of a SNT; require the trustee to notify the TRS upon the death of the beneficiary; require any payments not properly payable to the SNT to be repaid to TRS; allow TRS to promulgate administrative regulations to administer the SNT provisions; amend KRS 161.700 to require TRS to assign annuity payments to a SNT, issue payments to the trustee, and prevent annuity payments from being used to reimburse any state for any Medicaid benefits paid on behalf of the beneficiary of a SNT; amend KRS 21.420, relating to the Judicial Retirement Plan, to allow for a SNT to be selected as a beneficiary, and define "special needs trust"; amend KRS 21.425 to allow a member to designate a SNT to receive lifetime survivorship benefits on behalf of a surviving spouse, dependent child, or disabled child.

Bill Text

What changed in the latest version

1453 added · 1996 removed

1453 line(s) added, 1996 removed.

→
Previous
Latest
UNOFFICIAL COPY 26 RS SB 85/GA AN ACT relating to designating a special needs trust to receive state-administered retirement benefits.
CHAPTER 18 1 CHAPTER 18 ( SB 85 ) AN ACT relating to designating a special needs trust to receive state-administered retirement benefits.
For members who begin participating on or after September 1, 2008, "accumulated contributions" shall not include employee contributions that are deposited into accounts established pursuant to 26 Page 1 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA U.S.C.
For members who begin participating on or after September 1, 2008, "accumulated contributions" shall not include employee contributions that are deposited into accounts established pursuant to 26 U.S.C.
This subparagraph shall also include lump-sum payments for reinstated wages pursuant to KRS 61.569, which shall be credited to the period during which the wages were earned or should have been paid by the Page 2 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA employer;
This subparagraph shall also include lump-sum payments for reinstated wages pursuant to KRS 61.569, which shall be credited to the period during which the wages were earned or should have been paid by the employer;
and 4.
and Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY 4.
Each fiscal year used to determine final Page 3 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA compensation must contain twelve (12) months of service credit.
Each fiscal year used to determine final compensation must contain twelve (12) months of service credit.
two thousand eighty (2,080) hours for eight (8) hour workdays, one thousand nine hundred fifty (1,950) hours for seven and one-half (7- 1/2) hour workdays, two hundred sixty (260) days, fifty-two (52) weeks, twelve (12) months, or one (1) year;
two thousand eighty (2,080) hours for eight (8) hour workdays, one thousand nine hundred fifty (1,950) hours for seven and one-half (7-1/2) hour workdays, two hundred sixty (260) days, fifty-two (52) weeks, twelve (12) months, or one (1) year;
For members who began participating in the system prior to January 1, 2014, no disability retirement option shall be less than the same option Page 4 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA computed under early retirement;
For members who began participating in the system prior to January 1, 2014, no disability retirement option shall be less than the same option computed under early retirement;
(17) "Dependent child" means a child in the womb and a natural or legally adopted child of the member who has neither attained age eighteen (18) nor married or who is an unmarried full-time student who has not attained age twenty-two (22).
CHAPTER 18 3 (17) "Dependent child" means a child in the womb and a natural or legally adopted child of the member who has neither attained age eighteen (18) nor married or who is an unmarried full-time student who has not attained age twenty-two (22).
Page 5 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA (19) "Act in line of duty" means:
(19) "Act in line of duty" means:
Page 6 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA (24) "Current rate of pay" means the member's actual hourly, daily, weekly, biweekly, monthly, or yearly rate of pay converted to an annual rate as defined in final rate of pay.
(24) "Current rate of pay" means the member's actual hourly, daily, weekly, biweekly, monthly, or yearly rate of pay converted to an annual rate as defined in final rate of pay.
(30) "Last day of paid employment" means the last date employer and employee contributions are required to be reported in accordance with KRS 16.543 or 61.543 to the retirement office in order for the employee to receive current service credit for the month.
Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (30) "Last day of paid employment" means the last date employer and employee contributions are required to be reported in accordance with KRS 16.543 or 61.543 to the retirement office in order for the employee to receive current service credit for the month.
Last day of paid employment does not mean a date the employee receives payment for accrued leave, whether by lump sum or otherwise, if that date Page 7 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA occurs twenty-four (24) or more months after previous contributions;
Last day of paid employment does not mean a date the employee receives payment for accrued leave, whether by lump sum or otherwise, if that date occurs twenty-four (24) or more months after previous contributions;
(38) "Alternate payee" means a spouse, former spouse, child, or other dependent of a participant, who is designated to be paid retirement benefits in a qualified domestic Page 8 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA relations order;
(38) "Alternate payee" means a spouse, former spouse, child, or other dependent of a participant, who is designated to be paid retirement benefits in a qualified domestic relations order;
or (b) In the case where a member becomes totally and permanently disabled as a direct result of an act in line of duty as defined in this section or becomes disabled as a result of a duty-related injury as defined in KRS 61.621 and is eligible for the benefits provided by KRS 61.621(5)(a), the higher of the member's monthly final rate of pay or the average monthly creditable compensation earned by the disabled member during his or her last twelve (12) months of employment prior to the date the act in line of duty or duty- related injury occurred;
or (b) In the case where a member becomes totally and permanently disabled as a direct result of an act in line of duty as defined in this section or becomes disabled as a result of a duty-related injury as defined in KRS 61.621 and is eligible for the benefits provided by KRS 61.621(5)(a), the higher of the member's monthly final rate of pay or the average monthly creditable compensation earned by the disabled member during his or her last twelve (12) months of employment prior to the date the act in line of duty or duty-related injury occurred;
sec 1396p(d)(4)(A) or (C) for the benefit of one (1) person.
sec.
Any reference to a trust includes a special Page 9 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA needs trust, unless the context otherwise requires.
1396p(d)(4)(A) or (C) for the benefit of one (1) person.
Section 2.
Any reference to a trust includes a special needs trust, unless the context otherwise requires.
CHAPTER 18 5 Section 2.
(c) A monthly benefit payable for a period of sixty (60) months that is the actuarial equivalent to the amount computed under paragraph (a) of this Page 10 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA subsection;
(c) A monthly benefit payable for a period of sixty (60) months that is the actuarial equivalent to the amount computed under paragraph (a) of this subsection;
(4) If the beneficiary eligible for benefits as provided in subsection (1) of this section is the member's estate, then the beneficiary shall receive the higher of a refund of the Page 11 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA member's accumulated account balance and interest as described in KRS 61.625(1) or the one (1) time lump-sum payment payable under subsection (2)(f) of this section, using the assumption that the beneficiary's age is the same as the member's age.
(4) If the beneficiary eligible for benefits as provided in subsection (1) of this section is the member's estate, then the beneficiary shall receive the higher of a refund of the member's accumulated account balance and interest as described in KRS 61.625(1) or the one (1) time lump-sum payment payable under subsection (2)(f) of this section, using the assumption that the beneficiary's age is the same as the member's age.
(1) "System" means the Kentucky Employees Retirement System created by KRS 61.510 to 61.705;
Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (1) "System" means the Kentucky Employees Retirement System created by KRS 61.510 to 61.705;
(5) "Employee" means the members, officers, and employees of the General Assembly and every regular full-time, appointed or elective officer or employee of a participating department, including the Department of Military Affairs.
(5) "Employee" means the members, officers, and employees of the General Assembly and every regular full- time, appointed or elective officer or employee of a participating department, including the Department of Military Affairs.
(6) "Employer" means a department or any authority of a department having the power to appoint or select an employee in the department, including the Senate and the Page 12 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA House of Representatives, or any other entity, the employees of which are eligible for membership in the system pursuant to KRS 61.525;
(6) "Employer" means a department or any authority of a department having the power to appoint or select an employee in the department, including the Senate and the House of Representatives, or any other entity, the employees of which are eligible for membership in the system pursuant to KRS 61.525;
(12) "Accumulated contributions" at any time means the sum of all amounts deducted from the compensation of a member and credited to his or her individual account in Page 13 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA the members' account, including employee contributions picked up after August 1, 1982, pursuant to KRS 61.560(4), together with interest credited, on such amounts and any other amounts the member shall have contributed thereto, including interest credited thereon.
(12) "Accumulated contributions" at any time means the sum of all amounts deducted from the compensation of a member and credited to his or her individual account in the members' account, including employee contributions picked up after August 1, 1982, pursuant to KRS 61.560(4), together with interest credited, on such amounts and any other amounts the member shall have contributed thereto, including interest credited thereon.
1.
CHAPTER 18 7 1.
Page 14 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA 3.
3.
and Page 15 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA 4.
and 4.
If the number of months of service credit during the five (5) year period is less than forty-eight (48), one (1) or more additional fiscal years shall be used;
If the number of months of service credit during the five (5) year period is less than forty- eight (48), one (1) or more additional fiscal years shall be used;
(c) For a member who begins participating before September 1, 2008, who is employed in a hazardous position, as provided in KRS 61.592, the creditable compensation of the member during the three (3) fiscal years he or she was Page 16 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA paid at the highest average monthly rate divided by the number of months of service credit during that three (3) year period multiplied by twelve (12).
(c) For a member who begins participating before September 1, 2008, who is employed in a hazardous position, as provided in KRS 61.592, the creditable compensation of the member during the three (3) fiscal years he or she was paid at the highest average monthly rate divided by the number of months of service credit during that three (3) year period multiplied by twelve (12).
The three (3) years may be fractional and need not be consecutive.
The three (3) years may be Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY fractional and need not be consecutive.
If the number of months of service credit during the three (3) year period is less than twenty- four (24), one (1) or more additional fiscal years shall be used;
If the number of months of service credit during the three (3) year period is less than twenty-four (24), one (1) or more additional fiscal years shall be used;
(15) "Final rate of pay" means the actual rate upon which earnings of an employee were Page 17 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA calculated during the twelve (12) month period immediately preceding the member's effective retirement date, including employee contributions picked up after August 1, 1982, pursuant to KRS 61.560(4).
(15) "Final rate of pay" means the actual rate upon which earnings of an employee were calculated during the twelve (12) month period immediately preceding the member's effective retirement date, including employee contributions picked up after August 1, 1982, pursuant to KRS 61.560(4).
The term shall also apply to assistants who were employed by the General Assembly for at least one (1) regular legislative Page 18 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA session prior to July 13, 2004, who elect to participate in the retirement system, and who serve for at least six (6) regular legislative sessions.
The term shall also apply to assistants who were employed by the General Assembly for at least one (1) regular legislative session prior to July 13, 2004, who elect to participate in the retirement system, and who serve for at least six (6) regular legislative sessions.
or 2.
or CHAPTER 18 9 2.
and (e) Interim positions which are positions established for a one-time or recurring Page 19 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA need not to exceed nine (9) months;
and (e) Interim positions which are positions established for a one-time or recurring need not to exceed nine (9) months;
An alternate payee of a qualified domestic relations order shall not be considered a recipient, Page 20 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA except for purposes of KRS 61.623;
An alternate payee of a qualified domestic relations order shall not be considered a recipient, except for purposes of KRS 61.623;
Last day of paid employment does not mean a date the employee receives payment for accrued leave, whether by lump sum or otherwise, if that date occurs twenty-four (24) or more months after previous contributions;
Last day of paid employment does not mean a date the employee receives payment for accrued leave, whether by lump sum or otherwise, if that date occurs twenty- four (24) or more months after previous contributions;
psychiatric signs which are medically demonstrable phenomena indicating specific abnormalities of behavior, affect, thought, memory, orientation, or contact with reality;
psychiatric signs which are medically demonstrable phenomena indicating specific abnormalities of behavior, affect, thought, memory, Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY orientation, or contact with reality;
or laboratory findings which are anatomical, physiological, or psychological phenomena that can be shown by medically acceptable laboratory Page 21 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA diagnostic techniques, including but not limited to chemical tests, electrocardiograms, electroencephalograms, X-rays, and psychological tests;
or laboratory findings which are anatomical, physiological, or psychological phenomena that can be shown by medically acceptable laboratory diagnostic techniques, including but not limited to chemical tests, electrocardiograms, electroencephalograms, X-rays, and psychological tests;
Page 22 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA (39) "Alternate payee" means a spouse, former spouse, child, or other dependent of a participant, who is designated to be paid retirement benefits in a qualified domestic relations order;
(39) "Alternate payee" means a spouse, former spouse, child, or other dependent of a participant, who is designated to be paid retirement benefits in a qualified domestic relations order;
Show all 119 changed rows (79 more)
Previous
Latest
Compensation earned for services as a volunteer from more than one (1) participating employer during a month shall not be aggregated to determine whether Page 23 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA the compensation exceeds the five hundred dollars ($500) per month maximum provided by this subsection;
Compensation earned for services as a volunteer from more than one (1) participating employer during a month shall not be aggregated to determine whether the compensation exceeds the five hundred dollars ($500) per month maximum provided by this subsection;
(44) "Nonhazardous position" means a position that does not meet the requirements of KRS 61.592 or has not been approved by the board as a hazardous position;
CHAPTER 18 11 (44) "Nonhazardous position" means a position that does not meet the requirements of KRS 61.592 or has not been approved by the board as a hazardous position;
or (b) In the case where a member becomes totally and permanently disabled as a direct result of an act in line of duty as defined in KRS 16.505 or becomes disabled as a result of a duty-related injury as defined in KRS 61.621 and is eligible for the benefits provided by KRS 61.621(5)(a), the higher of the member's monthly final rate of pay or the average monthly creditable compensation earned by the disabled member during his or her last twelve (12) months of employment prior to the date the act in line of duty or duty- related injury occurred;
or (b) In the case where a member becomes totally and permanently disabled as a direct result of an act in line of duty as defined in KRS 16.505 or becomes disabled as a result of a duty-related injury as defined in KRS 61.621 and is eligible for the benefits provided by KRS 61.621(5)(a), the higher of the member's monthly final rate of pay or the average monthly creditable compensation earned by the disabled member during his or her last twelve (12) months of employment prior to the date the act in line of duty or duty-related injury occurred;
or (c) Other individuals employed in an administrative position that is eligible for Page 24 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA participation in the Teachers' Insurance and Annuity Association (TIAA) of the Teachers' Retirement System;
or (c) Other individuals employed in an administrative position that is eligible for participation in the Teachers' Insurance and Annuity Association (TIAA) of the Teachers' Retirement System;
The member may elect to receive a decreased retirement allowance during his or her lifetime and have two- thirds (2/3) of the retirement allowance continue after the member's death to his or her beneficiary during the lifetime of the person.
The member may elect to receive a decreased retirement allowance during his or her lifetime and have two-thirds (2/3) of the retirement allowance continue after the member's death to his or her beneficiary during the lifetime of the person.
Page 25 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA (4) Survivorship fifty percent (50%).
(4) Survivorship fifty percent (50%).
However, if the trust is designated as beneficiary, the trustee of the trust may elect to receive a lump-sum payment which shall be the actuarial equivalent to the remaining payments, or the trustee may elect to continue the remaining monthly payments to the trust of the member.
However, if the trust is designated as beneficiary, the trustee of the trust may elect to receive a Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY lump-sum payment which shall be the actuarial equivalent to the remaining payments, or the trustee may elect to continue the remaining monthly payments to the trust of the member.
The member less than age sixty-two (62) may Page 26 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA elect to receive a monthly retirement allowance during his or her lifetime which shall guarantee payments for two hundred forty (240) months.
The member less than age sixty-two (62) may elect to receive a monthly retirement allowance during his or her lifetime which shall guarantee payments for two hundred forty (240) months.
This option is available to the beneficiary of a deceased member if the beneficiary, who is a person, has not attained age sixty (60), and is eligible to receive Social Security payments at age Page 27 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA sixty (60).
This option is available to the beneficiary of a deceased member if the beneficiary, who is a person, has not attained age sixty (60), and is eligible to receive Social Security payments at age sixty (60).
A member may elect to receive a one-time lump-sum payment equal to twelve (12), twenty-four (24), thirty-six (36), forty-eight (48), or sixty (60) monthly retirement allowances payable under subsection (2) of this section and receive a reduced monthly retirement allowance payable for his or her lifetime.
A member may elect to receive a one-time lump-sum payment equal to twelve (12), twenty-four (24), thirty-six (36), forty-eight (48), or sixty (60) monthly retirement allowances payable CHAPTER 18 13 under subsection (2) of this section and receive a reduced monthly retirement allowance payable for his or her lifetime.
The lump-sum payment shall be paid in the Page 28 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA month the first monthly retirement allowance is payable.
The lump-sum payment shall be paid in the month the first monthly retirement allowance is payable.
(14) A member of the General Assembly who began participating in the system prior to January 1, 2014, who wishes to obtain the survivorship option specified in Page 29 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA subsection (13) of this section shall so notify the Kentucky Public Pensions Authority:
(14) A member of the General Assembly who began participating in the system prior to January 1, 2014, who wishes to obtain the survivorship option specified in subsection (13) of this section shall so notify the Kentucky Public Pensions Authority:
Upon the death of the retired member or beneficiary, the trustee of that trust shall notify the authority of the death of the retired member or beneficiary;
Upon the death of the retired member or beneficiary, the trustee of that trust shall notify the Authority of the death of the retired member or beneficiary;
Any retirement allowance payments made to a special needs trust that are not properly payable to the special needs trust shall be returned to the authority and shall not be subject to claims for reimbursement from any state for Medicaid benefits paid on behalf of the beneficiary of the special needs trust under any Medicaid payback provision;
Any retirement allowance payments made to a special needs trust that are not properly payable to the special needs trust shall be returned to the Authority and shall not be subject to claims for reimbursement from any state for Medicaid benefits paid on behalf of the beneficiary of the special needs trust under any Medicaid payback provision;
The authority may promulgate administrative regulations in accordance with KRS Chapter 13A to administer this subsection.
The Authority may promulgate administrative regulations in accordance with KRS Chapter 13A to administer this subsection.
Page 30 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA (1) If a member dies prior to the first day of the month in which the member would have received his or her first retirement allowance, the member's beneficiary shall be eligible for the benefits provided by this section if the member had on file a written designation of a beneficiary with the retirement office as provided by KRS 61.542 and the member met the following conditions at the date of his or her death:
(1) If a member dies prior to the first day of the month in which the member would have received his or her first retirement allowance, the member's beneficiary shall be eligible for the benefits provided by this section if the member had on file a written designation of a beneficiary with the retirement office as provided by KRS 61.542 and the member met the following conditions at the date of his or her death:
(a) The member was eligible to retire under KRS 61.559(2) or (3), 61.5956(5)(a) or (b), or 61.597(6)(a) or (b);
Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (a) The member was eligible to retire under KRS 61.559(2) or (3), 61.5956(5)(a) or (b), or 61.597(6)(a) or (b);
(c) A monthly benefit payable for a period of sixty (60) months that is the actuarial equivalent to the amount computed under paragraph (a) of this Page 31 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA subsection;
(c) A monthly benefit payable for a period of sixty (60) months that is the actuarial equivalent to the amount computed under paragraph (a) of this subsection;
(4) If the beneficiary eligible for benefits as provided in subsection (1) of this section is the member's estate, then the beneficiary shall receive the higher of a refund of the Page 32 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA member's accumulated account balance as described in KRS 61.625(1) or the one (1) time lump-sum payment payable under subsection (2)(f) of this section, using the assumption that the beneficiary's age is the same as the member's age.
(4) If the beneficiary eligible for benefits as provided in subsection (1) of this section is the member's estate, then the beneficiary shall receive the higher of a refund of the member's accumulated account balance as described in KRS 61.625(1) or the one (1) time lump-sum payment payable under subsection (2)(f) of this section, using the assumption that the beneficiary's age is the same as the member's age.
(b) A recipient or their legal representative may direct that the recipient's retirement benefits be paid to a trust that permits the recipient unrestricted access to the amounts held in the trust or if the trust is for the sole benefit of the recipient.
CHAPTER 18 15 (b) A recipient or their legal representative may direct that the recipient's retirement benefits be paid to a trust that permits the recipient unrestricted access to the amounts held in the trust or if the trust is for the sole benefit of the recipient.
(a) The benefits payable pursuant to the order meet the requirements of a Page 33 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA qualified domestic relations order as provided by 26 U.S.C.
(a) The benefits payable pursuant to the order meet the requirements of a qualified domestic relations order as provided by 26 U.S.C.
In calculating the amount to be paid to the alternate payee, the court or administrative agency that is responsible for issuing the order shall follow the requirements set forth in the administrative regulations promulgated Page 34 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA by the board of trustees.
In calculating the amount to be paid to the alternate payee, the court or administrative agency that is responsible for issuing the order shall follow the requirements set forth in the administrative regulations promulgated by the board of trustees.
(8) An alternate payee shall not receive a monthly payment under a qualified domestic relations order if the participant is not receiving a monthly retirement allowance.
Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (8) An alternate payee shall not receive a monthly payment under a qualified domestic relations order if the participant is not receiving a monthly retirement allowance.
Page 35 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA (a) If the order specifies the alternate payee is to receive a percentage of the participant's benefit, then the cost of living adjustment shall be divided between the participant and the alternate payee based upon the percentage of the total benefit each is receiving upon the participant's retirement or upon the date the order is approved by the retirement system, whichever is later;
(a) If the order specifies the alternate payee is to receive a percentage of the participant's benefit, then the cost of living adjustment shall be divided between the participant and the alternate payee based upon the percentage of the total benefit each is receiving upon the participant's retirement or upon the date the order is approved by the retirement system, whichever is later;
or Page 36 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA (c) Equally shared by the participant and alternate payee.
or (c) Equally shared by the participant and alternate payee.
(3) "County" means any county, or nonprofit organization created and governed by a county, counties, or elected county officers, sheriff and his or her employees, county clerk and his or her employees, circuit clerk and his or her deputies, former circuit clerks or former circuit clerk deputies, or political subdivision or instrumentality, including school boards, cities, charter county governments, urban- county governments, consolidated local governments, or unified local governments participating in the system by order appropriate to its governmental structure, as provided in KRS 78.530, and if the board is willing to accept the agency, organization, or corporation, the board being hereby granted the authority to Page 37 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA determine the eligibility of the agency to participate;
(3) "County" means any county, or nonprofit organization created and governed by a county, counties, or elected county officers, sheriff and his or her employees, county clerk and his or her employees, circuit clerk and his or her deputies, former circuit clerks or former circuit clerk deputies, or political subdivision or instrumentality, including school boards, cities, charter county governments, urban-county governments, consolidated local governments, or unified local governments participating in the system by order appropriate to its governmental structure, as provided in KRS 78.530, and if the board is willing to accept the agency, organization, or corporation, the board being hereby granted the authority to determine the eligibility of the agency to participate;
(a) Any board of education participating in the system by order appropriate to its governmental structure, as provided in KRS 78.530, and if the board is willing to accept the agency or corporation, the board being hereby granted the authority to determine the eligibility of the agency to participate;
CHAPTER 18 17 (a) Any board of education participating in the system by order appropriate to its governmental structure, as provided in KRS 78.530, and if the board is willing to accept the agency or corporation, the board being hereby granted the authority to determine the eligibility of the agency to participate;
The term shall not include persons engaged as independent contractors, seasonal, emergency, temporary, and part-time workers.
The term shall not include persons engaged as independent contractors, seasonal, emergency, temporary, and part- time workers.
(11) "Prior service" means the number of years and completed months, expressed as a Page 38 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA fraction of a year, of employment as an employee, prior to July 1, 1958, for which creditable compensation was paid.
(11) "Prior service" means the number of years and completed months, expressed as a fraction of a year, of employment as an employee, prior to July 1, 1958, for which creditable compensation was paid.
"Accumulated contributions" shall not include employee contributions that are deposited into accounts established pursuant to 26 U.S.C.
"Accumulated contributions" shall not include employee contributions that are deposited into accounts established pursuant to U.S.C.
Page 39 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA 1.
1.
Lump-sum payments for creditable compensation paid as a result of an order of a court of competent jurisdiction, the Personnel Board, or the Kentucky Commission on Human Rights, or for any creditable compensation paid in anticipation of settlement of an action before a court of competent jurisdiction, the Personnel Board, or the Kentucky Commission on Human Rights, including notices of violations of state or federal wage and hour statutes or violations of state or federal discrimination statutes, which shall be credited to the fiscal year during which the wages were earned or should have been paid by the employer.
Lump-sum payments for creditable compensation paid as a result of an order of a court of competent jurisdiction, the Personnel Board, or the Kentucky Commission on Human Rights, or for any creditable compensation paid in anticipation of settlement of an action before a court of competent jurisdiction, the Personnel Board, or the Kentucky Commission on Human Rights, Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY including notices of violations of state or federal wage and hour statutes or violations of state or federal discrimination statutes, which shall be credited to the fiscal year during which the wages were earned or should have been paid by the employer.
and Page 40 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA (c) Excludes:
and (c) Excludes:
If the number of months of service credit during the five (5) year period is less than forty-eight (48), one (1) or more additional fiscal years shall be used;
If the number of months of service credit during the five (5) year period is less than forty- eight (48), one (1) or more additional fiscal years shall be used;
(b) For a member who is employed in a nonhazardous position, whose effective retirement date is between August 1, 2001, and January 1, 2009, and whose total service credit is at least twenty-seven (27) years and whose age and years of service total at least seventy-five (75), final compensation means the creditable compensation of the member during the three (3) fiscal years the member was paid at the highest average monthly rate divided by the number Page 41 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA of months of service credit during that three (3) year period multiplied by twelve (12).
(b) For a member who is employed in a nonhazardous position, whose effective retirement date is between August 1, 2001, and January 1, 2009, and whose total service credit is at least twenty-seven (27) years and whose age and years of service total at least seventy-five (75), final compensation means the creditable compensation of the member during the three (3) fiscal years the member was paid at the highest average monthly rate divided by the number of months of service credit during that three (3) year period multiplied by twelve (12).
If the number of months of service credit during the three (3) year period is less than twenty- four (24), one (1) or more additional fiscal years, which may contain less than twelve (12) months of service credit, shall be used;
If the number of months of service credit during the three (3) year period is less than twenty-four (24), one (1) or more additional fiscal years, which may contain less than twelve (12) months of service credit, shall be used;
or (e) For a member who begins participating on or after September 1, 2008, but prior to January 1, 2014, who is employed in a hazardous position as provided in KRS 78.5520, the creditable compensation of the member during the three Page 42 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA (3) complete fiscal years he or she was paid at the highest average monthly rate divided by three (3).
or CHAPTER 18 19 (e) For a member who begins participating on or after September 1, 2008, but prior to January 1, 2014, who is employed in a hazardous position as provided in KRS 78.5520, the creditable compensation of the member during the three (3) complete fiscal years he or she was paid at the highest average monthly rate divided by three (3).
two thousand eighty (2,080) hours for eight (8) hour workdays, one thousand nine hundred fifty (1,950) hours for seven and one- half (7.5) hour workdays, two hundred sixty (260) days, fifty-two (52) weeks, twelve (12) months, one (1) year;
two thousand eighty (2,080) hours for eight (8) hour workdays, one thousand nine hundred fifty (1,950) hours for seven and one-half (7.5) hour workdays, two hundred sixty (260) days, fifty-two (52) weeks, twelve (12) months, one (1) year;
Page 43 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA (18) "Normal retirement date", unless otherwise provided in KRS 78.510 to 78.852, means:
(18) "Normal retirement date", unless otherwise provided in KRS 78.510 to 78.852, means:
(a) Seasonal positions, which although temporary in duration, are positions which coincide in duration with a particular season or seasons of the year and that may recur regularly from year to year, in which case the period of time shall Page 44 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA not exceed nine (9) months, except for employees of school boards, in which case the period of time shall not exceed six (6) months;
(a) Seasonal positions, which although temporary in duration, are positions which coincide in duration with a particular season or seasons of the year and that may recur regularly from year to year, in which case the period of time shall not exceed nine (9) months, except for employees of school boards, in which case the period of time shall not exceed six (6) months;
(c) Temporary positions that are positions of employment with a participating agency for a period of time not to exceed twelve (12) months and not renewable;
Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (c) Temporary positions that are positions of employment with a participating agency for a period of time not to exceed twelve (12) months and not renewable;
Page 45 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA (22) "Alternate participation plan" means a method of participation in the system as provided for by KRS 78.530(3);
(22) "Alternate participation plan" means a method of participation in the system as provided for by KRS 78.530(3);
For purposes of this subsection, "service" means service in the Page 46 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA systems administered by the Kentucky Retirement Systems and County Employees Retirement System;
For purposes of this subsection, "service" means service in the systems administered by the Kentucky Retirement Systems and County Employees Retirement System;
(37) "Accumulated employer credit" means the employer pay credit deposited to the member's account and interest credited on such amounts as provided by KRS 78.5512 and 78.5516;
CHAPTER 18 21 (37) "Accumulated employer credit" means the employer pay credit deposited to the member's account and interest credited on such amounts as provided by KRS 78.5512 and 78.5516;
Page 47 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA (39) "Volunteer" means an individual who:
(39) "Volunteer" means an individual who:
Page 48 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA (44) "Increment" means twelve (12) months of service credit which are purchased.
(44) "Increment" means twelve (12) months of service credit which are purchased.
Last day of paid employment does not mean a date the employee receives payment for accrued leave, whether by lump sum or otherwise, if that date occurs twenty-four (24) or more months after previous contributions;
Last day of paid employment does not mean a date the employee receives payment for accrued leave, whether by lump sum or otherwise, if that date occurs twenty- four (24) or more months after previous contributions;
or (b) A single act of violence committed against the employee that is found to be related to his or her job duties, whether or not it occurs at his or her job site;
or Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (b) A single act of violence committed against the employee that is found to be related to his or her job duties, whether or not it occurs at his or her job site;
Page 49 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA (49) "Dependent child" means a child in the womb and a natural or legally adopted child of the member who has neither attained age eighteen (18) nor married or who is an unmarried full-time student who has not attained age twenty-two (22).
(49) "Dependent child" means a child in the womb and a natural or legally adopted child of the member who has neither attained age eighteen (18) nor married or who is an unmarried full-time student who has not attained age twenty-two (22).
or (b) In the case where a member becomes totally and permanently disabled as a direct result of an act in line of duty as defined in KRS 16.505 or becomes disabled as a result of a duty-related injury as defined in KRS 61.621 and is eligible for the benefits provided by KRS 61.621(5)(a), the higher of the Page 50 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA member's monthly final rate of pay or the average monthly creditable compensation earned by the disabled member during his or her last twelve (12) months of employment prior to the date the act in line of duty or duty- related injury occurred;
or (b) In the case where a member becomes totally and permanently disabled as a direct result of an act in line of duty as defined in KRS 16.505 or becomes disabled as a result of a duty-related injury as defined in KRS 61.621 and is eligible for the benefits provided by KRS 61.621(5)(a), the higher of the member's monthly final rate of pay or the average monthly creditable compensation earned by the disabled member during his or her last twelve (12) months of employment prior to the date the act in line of duty or duty-related injury occurred;
(b) The member was in active employment or on authorized leave of absence with five (5) or more years of service credit and died prior to his or her normal retirement date or in the case of a nonhazardous member, was normal Page 51 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA retirement age or older and had at least four (4) years of service credit;
(b) The member was in active employment or on authorized leave of absence with five (5) or more years of service credit and died prior to his or her normal retirement date or in the case of a nonhazardous member, was normal retirement age or older and had at least four (4) years of service credit;
(a) A monthly benefit payable for the life of the beneficiary or the life of the beneficiary of the special needs trust that is equal to the benefit that would have been paid had the member retired immediately prior to his or her date of death and elected to receive benefits payable under the survivorship one hundred percent (100%) option as provided in KRS 61.635(2);
CHAPTER 18 23 (a) A monthly benefit payable for the life of the beneficiary or the life of the beneficiary of the special needs trust that is equal to the benefit that would have been paid had the member retired immediately prior to his or her date of death and elected to receive benefits payable under the survivorship one hundred percent (100%) option as provided in KRS 61.635(2);
(e) If the member began participating prior to January 1, 2014, a monthly benefit payable for a period of one hundred twenty (120) months that is equivalent to the benefit the member would have been entitled to receive based on his or her years of service and final compensation at the date of his or her death reduced by the survivorship fifty percent (50%) factor as provided for in KRS 61.635(4), then reduced by fifty percent (50%), and that is the actuarial Page 52 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA equivalent to the amount computed under paragraph (a) of this subsection;
(e) If the member began participating prior to January 1, 2014, a monthly benefit payable for a period of one hundred twenty (120) months that is equivalent to the benefit the member would have been entitled to receive based on his or her years of service and final compensation at the date of his or her death reduced by the survivorship fifty percent (50%) factor as provided for in KRS 61.635(4), then reduced by fifty percent (50%), and that is the actuarial equivalent to the amount computed under paragraph (a) of this subsection;
(6) (a) The beneficiary of a member with service in a nonhazardous position who dies as a result of a duty-related injury may be eligible for benefits based upon the definitions, criteria, and benefits specified by KRS 61.621.
(6) (a) The beneficiary of a member with service in a nonhazardous position who dies as a result of a duty- related injury may be eligible for benefits based upon the definitions, criteria, and benefits specified by KRS 61.621.
(1) Upon death of a member in active contributing status at the time of death, who was eligible to retire by reason of service, the spouse, if named as the primary Page 53 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA beneficiary of the member's retirement account, or in the absence of an eligible spouse a legal dependent of the member, if named as the primary beneficiary, shall be entitled to elect, in lieu of a refund of the member's accumulated account balance or benefits provided in KRS 161.520, an annuity actuarially equivalent at the attained age of the beneficiary to the annuity that would have been paid to the deceased member had retirement been effective on the day immediately preceding the member's death.
(1) Upon death of a member in active contributing status at the time of death, who was eligible to retire by reason of service, the spouse, if named as the primary beneficiary of the member's retirement account, or in the absence of an eligible spouse a legal dependent of the member, if named as the primary beneficiary, shall be entitled to elect, in lieu of a refund of the member's accumulated account balance or benefits provided in KRS 161.520, an annuity actuarially equivalent at the attained age of the beneficiary to the annuity that would have been paid to the deceased member had retirement been effective on the day immediately preceding the member's death.
(3) Upon death of a member in active contributing status at the time of his or her death, who had a minimum of twenty-seven (27) years of service, the spouse, if named as the primary beneficiary of the member's account shall be entitled to a monthly minimum allowance of three hundred dollars ($300) as the basic straight life annuity.
Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (3) Upon death of a member in active contributing status at the time of his or her death, who had a minimum of twenty-seven (27) years of service, the spouse, if named as the primary beneficiary of the member's account shall be entitled to a monthly minimum allowance of three hundred dollars ($300) as the basic straight life annuity.
Page 54 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA Section 10.
Section 10.
(b) If the retiree, beneficiary, or survivor is a resident of a nursing or assisted-care home, monthly payments may be made to the order of the nursing or assisted- care home for the benefit of the retiree, beneficiary, or survivor by including the retiree's, beneficiary's, or survivor's name.
(b) If the retiree, beneficiary, or survivor is a resident of a nursing or assisted-care home, monthly payments may be made to the order of the nursing or assisted-care home for the benefit of the retiree, beneficiary, or survivor by including the retiree's, beneficiary's, or survivor's name.
Monthly annuity checks so paid Page 55 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA to a nursing or assisted-care home may be sent by mail rather than electronic fund transfer.
Monthly annuity checks so paid to a nursing or assisted-care home may be sent by mail rather than electronic fund transfer.
Page 56 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA (2) Notwithstanding the provisions of subsection (1) of this section, retirement allowances and other benefits accrued or accruing under KRS 161.220 to 161.716 to a person who is the beneficiary of a special needs trust may be assigned to the trustee of that special needs trust.
(2) Notwithstanding the provisions of subsection (1) of this section, retirement allowances and other benefits accrued or accruing under KRS 161.220 to 161.716 to a person who is the beneficiary of a special needs trust may be assigned to the trustee of that special needs trust.
Any retirement allowances or other benefits assigned to a special needs trust under this subsection, or accrued or accruing under KRS 161.220 to 161.716 to a person who is the beneficiary of a special needs trust, shall cease upon the death of the beneficiary of the special needs trust and shall not be subject to state reimbursement for Medicaid benefits paid on behalf of the beneficiary under a Medicaid payback provision.
Any retirement allowances or other benefits assigned to a special needs trust under this subsection, or accrued or accruing under KRS 161.220 to CHAPTER 18 25 161.716 to a person who is the beneficiary of a special needs trust, shall cease upon the death of the beneficiary of the special needs trust and shall not be subject to state reimbursement for Medicaid benefits paid on behalf of the beneficiary under a Medicaid payback provision.
Page 57 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA (b) The order meets the requirements established by the retirement system and by subsections (5)[(4)] to (13)[(12)] of this section.
(b) The order meets the requirements established by the retirement system and by subsections (5)[(4)] to (13)[(12)] of this section.
Notwithstanding any other statute to the contrary, the board shall not be required to honor a qualified domestic relations order that does not follow the requirements set forth in the administrative regulations promulgated Page 58 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA by the board of trustees.
Notwithstanding any other statute to the contrary, the board shall not be required to honor a qualified domestic relations order that does not follow the requirements set forth in the administrative regulations promulgated by the board of trustees.
(9)[(8)] An alternate payee's benefits and rights under a qualified domestic relations order shall terminate upon the earlier of:
Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (9)[(8)] An alternate payee's benefits and rights under a qualified domestic relations order shall terminate upon the earlier of:
(a) If the order specifies the alternate payee is to receive a percentage of the participant's benefit, then the cost of living adjustment shall be divided Page 59 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA between the participant and the alternate payee based upon the percentage of the total benefit each is receiving upon the participant's retirement or upon the date the order is approved by the retirement system, whichever is later;
(a) If the order specifies the alternate payee is to receive a percentage of the participant's benefit, then the cost of living adjustment shall be divided between the participant and the alternate payee based upon the percentage of the total benefit each is receiving upon the participant's retirement or upon the date the order is approved by the retirement system, whichever is later;
(13)[(12)] The retirement system shall honor a qualified domestic relations order issued Page 60 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA prior to July 15, 2010, for prospective benefit payments if the order or an amended version of the order meets the requirements established by this section and the administrative regulations promulgated by the retirement system.
(13)[(12)] The retirement system shall honor a qualified domestic relations order issued prior to July 15, 2010, for prospective benefit payments if the order or an amended version of the order meets the requirements established by this section and the administrative regulations promulgated by the retirement system.
(1) After the death of a member who began participating in the Judicial Retirement Plan prior to January 1, 2014, who at the time of his or her death was receiving a service retirement allowance (other than an actuarially reduced allowance under subsection (3) of KRS 21.400), or was receiving a disability retirement allowance, his or her surviving spouse is entitled to receive during his or her lifetime a monthly allowance equal to one-half (1/2) of that he or she was receiving.
(1) After the death of a member who began participating in the Judicial Retirement Plan prior to January 1, 2014, who at the time of his or her death was receiving a service retirement allowance (other than an actuarially reduced allowance under subsection (3) of KRS 21.400), or was receiving a disability retirement allowance, his or her surviving spouse is entitled to receive during his or her lifetime a monthly allowance equal to one- half (1/2) of that he or she was receiving.
(2) (a) If a member who began participating in the Judicial Retirement Plan prior to January 1, 2014, dies before retirement and before reaching normal retirement age, without regard to length of service, his or her surviving spouse is entitled to receive during his or her lifetime a monthly allowance equal to one-half (1/2) of the monthly allowance the member would have received commencing at his or her normal retirement date if he or she had continued in service until that date and had then retired, computed however on the basis of his or her final compensation at time of death.
(2) (a) If a member who began participating in the Judicial Retirement Plan prior to January 1, 2014, dies before retirement and before reaching normal retirement age, without regard to length of service, his or her surviving spouse is entitled to receive during his or her lifetime a monthly allowance equal to one- half (1/2) of the monthly allowance the member would have received commencing at his or her normal retirement date if he or she had continued in service until that date and had then retired, computed however on the basis of his or her final compensation at time of death.
(b) If a member who began participating in the Judicial Retirement Plan prior to January 1, 2014, dies before retirement and after reaching normal retirement age, his or her surviving spouse is entitled to receive during his or her lifetime a monthly allowance equal to one-half (1/2) of the monthly allowance the member would have been entitled to, on the basis of his or her years of service, had he or she retired on the date of his death.
CHAPTER 18 27 (b) If a member who began participating in the Judicial Retirement Plan prior to January 1, 2014, dies before retirement and after reaching normal retirement age, his or her surviving spouse is entitled to receive during his or her lifetime a monthly allowance equal to one-half (1/2) of the monthly allowance the member would have been entitled to, on the basis of his or her years of service, had he or she retired on the date of his death.
(3) If a member who began participating in the Judicial Retirement Plan prior to Page 61 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA January 1, 2014, dies after retirement and was at the time of his or her death receiving an actuarially reduced allowance under subsection (3) of KRS 21.400, or was not at the time of his or her death receiving a retirement allowance but had acquired the vested right under subsection (2) of KRS 21.400 to have received an allowance upon reaching normal retirement age, his or her surviving spouse is entitled to receive during his or her lifetime a monthly allowance equal to one-half (1/2) of the monthly allowance the member would have received when he or she reached normal retirement age.
(3) If a member who began participating in the Judicial Retirement Plan prior to January 1, 2014, dies after retirement and was at the time of his or her death receiving an actuarially reduced allowance under subsection (3) of KRS 21.400, or was not at the time of his or her death receiving a retirement allowance but had acquired the vested right under subsection (2) of KRS 21.400 to have received an allowance upon reaching normal retirement age, his or her surviving spouse is entitled to receive during his or her lifetime a monthly allowance equal to one-half (1/2) of the monthly allowance the member would have received when he or she reached normal retirement age.
A member who began participating in the plan on or after January 1, 2014, who commences drawing retirement benefits Page 62 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA pursuant to KRS 21.402 or 21.410, and who dies without a spouse or eligible children entitled to survivor's benefits and before the benefits received by the member equal the accumulated account balance of the member, may designate a beneficiary who shall receive the balance of the accumulated account balance of the member.
A member who began participating in the plan on or after January 1, 2014, who commences drawing retirement benefits pursuant to KRS 21.402 or 21.410, and who dies without a spouse or eligible children entitled to survivor's benefits and before the benefits received by the member equal the accumulated account balance of the member, may designate a beneficiary who shall receive the balance of the accumulated account balance of the member.
The member may elect to receive a decreased retirement allowance during the member's lifetime and have the Page 63 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA retirement allowance continued after death to the spouse during the lifetime of the spouse.
The member may elect to receive a decreased retirement allowance during the member's lifetime and have the retirement allowance continued after death to the spouse during the lifetime of the spouse.
Each recipient of benefits from the plan, who retired from July 15, 1994, to July 15, 1998, shall have a one-time opportunity to select an optional retirement allowance.
Each recipient of benefits from the Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY plan, who retired from July 15, 1994, to July 15, 1998, shall have a one-time opportunity to select an optional retirement allowance.
Page 64 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA In lieu of the benefits provided by this paragraph to the surviving spouse, the member may elect to have the benefits payable under this paragraph paid to an individual dependent child by completing the forms provided prescribed by the Judicial Form Retirement System.
In lieu of the benefits provided by this paragraph to the surviving spouse, the member may elect to have the benefits payable under this paragraph paid to an individual dependent child by completing the forms provided prescribed by the Judicial Form Retirement System.
In lieu of the benefits provided by this paragraph to the surviving spouse, the member may elect prior to retirement to have the benefits payable under this Page 65 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA paragraph paid to an individual dependent child or to a special needs trust by completing the forms provided by the Judicial Form Retirement System.
In lieu of the benefits provided by this paragraph to the surviving spouse, the member may elect prior to retirement to have the benefits payable under this paragraph paid to an individual dependent child or to a special needs trust by completing the forms provided by the Judicial Form Retirement System.
(a) If the member does not have a disabled child or children, the benefit shall continue until there are no children remaining under the age of twenty-one (21);
CHAPTER 18 29 (a) If the member does not have a disabled child or children, the benefit shall continue until there are no children remaining under the age of twenty-one (21);
(2) A member may designate his or her child or children under the age of twenty-one (21), or his or her disabled child or children, or a special needs trust as defined by Page 66 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA UNOFFICIAL COPY 26 RS SB 85/GA subsection (9) of Section 12 of this Act for the benefit of the disabled child, to receive the death benefit payable under KRS 21.420 instead of his or her spouse, or he or she may designate that his or her spouse shall receive a percentage of the death benefit, and his or her child or children under the age of twenty-one (21), or his or her disabled child or children, or a special needs trust as defined by subsection (9) of Section 12 of this Act for the benefit of a disabled child, shall receive the remainder.
(2) A member may designate his or her child or children under the age of twenty-one (21), or his or her disabled child or children, or a special needs trust as defined by subsection (9) of Section 12 of this Act for the benefit of the disabled child, to receive the death benefit payable under KRS 21.420 instead of his or her spouse, or he or she may designate that his or her spouse shall receive a percentage of the death benefit, and his or her child or children under the age of twenty-one (21), or his or her disabled child or children, or a special needs trust as defined by subsection (9) of Section 12 of this Act for the benefit of a disabled child, shall receive the remainder.
Page 67 of 67 SB008510.100 - 1087 - XXXX 2/18/2026 2:38 PM GA
Signed by Governor April 3, 2026.
Legislative Research Commission PDF Version
⬇ Download PDF
View plain text versions (3)

How this bill changes current law

1 change Share ↗

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

The bill amends KRS 16.505 to explicitly define 'special needs trust' in relation to state-administered retirement benefits.

  • KRS 16.505

    ‘Special needs trust’ means a trust established for the benefit of an individual that is intended to supplement, but not supplant, any government benefits the individual may receive.

    This addition provides a definition of 'special needs trust' to clarify its relevance to retirement benefits.

Action History

  1. signed by Governor (Acts Ch. 18)

  2. delivered to Governor

  3. enrolled, signed by Speaker of the House

  4. enrolled, signed by President of the Senate

  5. received in Senate

  6. 3rd reading, passed 90-0

  7. posted for passage in the Regular Orders of the Day for Friday, March 27 2026

  8. 2nd reading, to Rules

  9. reported favorably, 1st reading, to Calendar

  10. to State Government (H)

  11. to Committee on Committees (H)

  12. received in House

  13. 3rd reading, passed 36-0

  14. posted for passage in the Regular Orders of the Day for Wednesday, February 18 2026

  15. 2nd reading, to Rules

  16. reported favorably, 1st reading, to Calendar

  17. to State & Local Government (S)

  18. to Committee on Committees (S)

  19. introduced in Senate

Sponsors

Sponsorship breakdown

Export CSV (upgrade) →

2 sponsors · 0 co-sponsors · 136 not signed on

Sponsors (2)

Co-sponsors (0)

None.

Not signed on (136)

136 members have not signed on to this bill.

Show all 136 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Pass

Passed 90 Yea · 0 Nay · 10 Other
Party YeaNayPresentNot Voting
Democrat 20000
Republican 690010
Unaffiliated 1000
Total 900010
% of votes cast 90%0%0%10%
How each member voted (100)
Member Party Vote
Lewis C — Yea
Adam Moore Democrat Yea
Adrielle Camuel Democrat Yea
Al Gentry Democrat Yea
Anne Gay Donworth Democrat Yea
Ashley Tackett Laferty Democrat Yea
Beverly Chester-Burton Democrat Yea
Chad Aull Democrat Yea
Daniel Grossberg Democrat Yea
Erika Hancock Democrat Yea
George Brown Jr. Democrat Yea
Joshua Watkins Democrat Yea
Lindsey Burke Democrat Yea
Lisa Willner Democrat Yea
Mary Lou Marzian Democrat Yea
Matthew Lehman Democrat Yea
Nima Kulkarni Democrat Yea
Pamela Stevenson Democrat Yea
Rachel Roarx Democrat Yea
Sarah Stalker Democrat Yea
Tina Bojanowski Democrat Yea
Aaron Thompson Republican Yea
Adam Bowling Republican Not Voting
Amy Neighbors Republican Yea
Bill Wesley Republican Yea
Bobby McCool Republican Yea
Candy Massaroni Republican Yea
Chris Freeland Republican Yea
Chris Fugate Republican Yea
DJ Johnson Republican Yea
Daniel Elliott Republican Yea
Daniel Fister Republican Yea
David Hale Republican Yea
David Meade Republican Yea
David W. Osborne Republican Yea
Deanna Gordon Republican Yea
Derek Lewis Republican Not Voting
Emily Callaway Republican Yea
Felicia Rabourn Republican Yea
J.T. Payne Republican Yea
James Tipton Republican Yea
Jared Bauman Republican Yea
Jason Nemes Republican Yea
Jason Petrie Republican Yea
Jennifer Decker Republican Yea
Jim Gooch Jr. Republican Yea
John Blanton Republican Yea
John Hodgson Republican Yea
Josh Branscum Republican Yea
Josh Bray Republican Not Voting
Josh Calloway Republican Yea
Ken Fleming Republican Yea
Ken Upchurch Republican Yea
Kevin Jackson Republican Yea
Kim Banta Republican Yea
Kim Holloway Republican Yea
Kim King Republican Yea
Kimberly Poore Moser Republican Yea
Marianne Proctor Republican Yea
Mark Hart Republican Yea
Mary Beth Imes Republican Yea
Matt Lockett Republican Yea
Matthew Koch Republican Not Voting
Michael Meredith Republican Yea
Michael Sarge Pollock Republican Yea
Mike Clines Republican Yea
Mitch Whitaker Republican Yea
Myron Dossett Republican Not Voting
Nancy Tate Republican Yea
Nick Wilson Republican Yea
Patrick Flannery Republican Yea
Peyton Griffee Republican Yea
Randy Bridges Republican Yea
Rebecca Raymer Republican Yea
Richard White Republican Not Voting
Robert Duvall Republican Yea
Ryan Bivens Republican Yea
Ryan Dotson Republican Yea
Samara Heavrin Republican Yea
Savannah Maddox Republican Yea
Scott Lewis Republican Yea
Scott Sharp Republican Yea
Shane Baker Republican Yea
Shawn McPherson Republican Yea
Stephanie Dietz Republican Yea
Steve Bratcher Republican Yea
Steve Riley Republican Yea
Steven Doan Republican Yea
Steven Rudy Republican Not Voting
Susan Witten Republican Yea
Suzanne Miles Republican Yea
T.J. Roberts Republican Yea
Thomas Huff Republican Yea
Timmy Truett Republican Yea
Tom Smith Republican Yea
Tony Hampton Republican Not Voting
Vanessa Grossl Republican Yea
Wade Williams Republican Not Voting
Walker Thomas Republican Yea
William Lawrence Republican Not Voting

Official roll call →

PASS SB 85

Passed 36 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Democrat 5000
Republican 31002
Total 36002
% of votes cast 95%0%0%5%
How each member voted (38)
Member Party Vote
Cassie Chambers Armstrong Democrat Yea
Gary Clemons Democrat Yea
Gerald A. Neal Democrat Yea
Karen Berg Democrat Yea
Keturah J. Herron Democrat Yea
Aaron Reed Republican Yea
Amanda Mays Bledsoe Republican Yea
Brandon J. Storm Republican Yea
Christian McDaniel Republican Yea
Craig Richardson Republican Yea
Danny Carroll Republican Yea
David P. Givens Republican Yea
Donald Douglas Republican Yea
Gary Boswell Republican Yea
Greg Elkins Republican Not Voting
Jared Carpenter Republican Yea
Jason Howell Republican Yea
Jason Nemes Republican Yea
Jimmy Higdon Republican Yea
Julie Raque Adams Republican Not Voting
Lindsey Tichenor Republican Yea
Matt Nunn Republican Yea
Matthew Deneen Republican Yea
Max Wise Republican Yea
Michael Meredith Republican Yea
Nick Wilson Republican Yea
Phillip Wheeler Republican Yea
Rick Girdler Republican Yea
Robby Mills Republican Yea
Robert Stivers Republican Yea
Robin L. Webb Republican Yea
Scott Madon Republican Yea
Shelley Funke Frommeyer Republican Yea
Stephen West Republican Yea
Steve Rawlings Republican Yea
Tom Smith Republican Yea
Wade Williams Republican Yea
Walker Thomas Republican Yea

Official roll call →

Subjects

finance veterans
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does SB 85 do?
Amend KRS 16.505, 61.510, and 78.510 to define "special needs trust" (SNT) for purposes of the State Police Retirement System, Kentucky Employees Retirement System, and County Employees Retirement System; amend the definition of "beneficiary" to include a SNT; amend KRS 16.578 to allow a SNT to receive a lifetime retirement payment if a member dies before retirement; amend KRS 61.635 to allow a person who is the beneficiary of a SNT to be designated as the beneficiary of a lifetime retirement benefit; require the trustee of a SNT to notify the Kentucky Public Pensions Authority (KPPA) upon the death of the beneficiary of a SNT and repay any payment not properly payable to the SNT; allow KPPA to promulgate administrative regulations to administer the SNT provisions; amend KRS 61.640 to allow a SNT to receive a lifetime retirement payment if a member dies before retirement; amend KRS 61.690 to allow a recipient or legal representative to direct retirement benefits to be paid to a SNT and clarify that it is not an assignment or transfer; amend KRS 78.5532 to allow a SNT to receive a lifetime retirement benefit if a member dies before retirement; amend KRS 161.525, relating to the Teachers' Retirement System (TRS) to allow a SNT to receive a lifetime annuity if a member dies before retirement; amend KRS 161.640 to allow checks to be sent by mail to the trustee of a SNT; require the trustee to notify the TRS upon the death of the beneficiary; require any payments not properly payable to the SNT to be repaid to TRS; allow TRS to promulgate administrative regulations to administer the SNT provisions; amend KRS 161.700 to require TRS to assign annuity payments to a SNT, issue payments to the trustee, and prevent annuity payments from being used to reimburse any state for any Medicaid benefits paid on behalf of the beneficiary of a SNT; amend KRS 21.420, relating to the Judicial Retirement Plan, to allow for a SNT to be selected as a beneficiary, and define "special needs trust"; amend KRS 21.425 to allow a member to designate a SNT to receive lifetime survivorship benefits on behalf of a surviving spouse, dependent child, or disabled child.
Who sponsors SB 85?
SB 85 is sponsored by Danny Carroll (Republican) and Robin L. Webb (Republican).
What is the current status of SB 85?
This bill has been enacted into law. Introduced January 13, 2026. Enacted.
Where can I track SB 85?
Track SB 85 free on One Click Politics — get push/email alerts when it moves.

Make your voice heard on SB 85

Find the representatives who decide this bill and tell them where you stand — for yourself, or mobilize your whole list in one click with One Click Politics advocacy software.

Find my representatives → Run a campaign

Stay ahead of SB 85

Last checked for changes about 2 months ago · updated continuously

One Click Politics tracks every bill in Congress and all 50 states.

Track this bill →