HB 220 — AN ACT relating to pension spiking in the systems administered by the Kentucky Public Pensions Authority.

Summary

Amend KRS 61.598, relating to pension spiking and the definition of "bona fide promotion or career advancement," to retroactively exempt pension spiking adjustments that were due to increases in rates of pay authorized or funded by the legislative or administrative body of an employer or mandated in a collective bargaining agreement approved by the legislative body of the employer for members of the Kentucky Employees Retirement System, County Employees Retirement System, or State Police Retirement System who retired on or after July 1, 2022; require the Kentucky Public Pension Authority to review and make necessary adjustments to benefits payable on or after July 1, 2022, to impacted members; RETROACTIVE.

Bill Text

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

The bill modifies the criteria for determining bona fide promotions and career advancements affecting pension calculations, aiming to prevent pension spiking and ensure more stringent oversight of compensation increases.

• KRS 61.598

  For purposes of → As used in

  Clarifies the language at the beginning of the definition for 'bona fide promotion or career advancement'.

• KRS 61.598

  Increases in creditable compensation in a fiscal year over the immediately preceding fiscal year, where in the immediately preceding fiscal year the employer reported the employee as being on leave without pay for any reason, including but not limited to sick leave without pay, maternity leave, leave authorized under the Family Medical Leave Act, and any period of time where the employee received workers' compensation benefit payments that were not reported to the plan as creditable compensation; → Increases in creditable compensation in a fiscal year over the immediately preceding fiscal year, where in the immediately preceding fiscal year the employer reported the employee as being on leave without pay for any reason, including but not limited to sick leave without pay, maternity leave, leave authorized under the Family Medical Leave Act, or where the employee received workers' compensation benefit payments that were not reported to the plan as creditable compensation;

  Refines the exemption conditions for increases in creditable compensation related to leaves of absence.

• KRS 61.598

  A bona fide promotion or career advancement as defined by subsection (1) of this section; → A bona fide promotion or career advancement as defined by subsection (1) of this section;

  Clarifies which exceptions apply regarding increases in creditable compensation.

• KRS 61.598

  the first one hundred (100) hours of mandatory overtime hours that the employee is individually required to work by the employer during a fiscal year. This subparagraph shall not be construed to apply to overtime hours voluntarily worked by the employee or in situations in which the employee has the option to elect out of participation in overtime hours. → the first one hundred (100) hours of mandatory overtime hours that the employee is individually required to work by the employer during a fiscal year. This subparagraph shall not be construed to apply to overtime hours voluntarily worked by the employee or in situations in which the employee has the option to elect out of participation in overtime hours.

  Clarifies the mandatory overtime criteria for pension calculations.

• KRS 61.598

  the Kentucky Retirement Systems and the County Employees Retirement System shall provide a means for employers to separately report the specific exceptions provided in subsection (4) of this section within the reporting system utilized by the employers for making employer reports under KRS 16.645, 61.675, and 78.545. → the Authority shall determine whether increases in creditable compensation during the last five (5) fiscal years of employment prior to retirement constitute a bona fide promotion or career advancement and may promulgate administrative regulations in accordance with KRS Chapter 13A to administer this section. All state-administered retirement systems shall cooperate to implement this section.

  Changes the responsibility for determining bona fide promotions and career advancements from the retirement systems to the Authority.

• KRS 61.598

  the systems shall make a determination that is binding to the systems as to whether or not a change of position or hiring constitutes a bona fide promotion or career advancement. → the systems shall make a determination that is binding to the systems as to whether or not a change of position or hiring constitutes a bona fide promotion or career advancement.

  Ensures that determinations made regarding promotions or advancements are binding.

Action History

1. April 17, 2026

   signed by Governor (Acts Ch. 189)

2. April 15, 2026

   delivered to Governor

3. April 15, 2026

   enrolled, signed by President of the Senate

4. April 15, 2026

   enrolled, signed by Speaker of the House

5. April 15, 2026

   received in House

6. April 15, 2026

   passed 36-0

7. April 15, 2026

   Senate receded from Committee Substitute (1) and Committee Amendment (1-title)

8. April 15, 2026

   posted for passage for receding from Senate Committee Substitute (1) and Committee Amendment (1-title)

9. March 31, 2026

   to Rules (S)

10. March 31, 2026

    received in Senate

11. March 31, 2026

    House refused to concur in Senate Committee Substitute (1) and Committee Amendment (1-title)

12. March 27, 2026

    posted for passage for concurrence in Senate Committee Substitute (1) and Committee Amendment (1-title)

13. March 20, 2026

    to Rules (H)

14. March 20, 2026

    received in House

15. March 20, 2026

    3rd reading, passed 37-0 with Committee Substitute (1) and Committee Amendment (1-title)

16. March 19, 2026

    posted for passage in the Consent Orders of the Day for Friday, March 20 2026

17. March 19, 2026

    2nd reading, to Rules as a consent bill

18. March 18, 2026

    reported favorably, 1st reading, to Consent Calendar with Committee Substitute (1) and Committee Amendment (1-title)

19. March 16, 2026

    to State & Local Government (S)

20. February 26, 2026

    to Committee on Committees (S)

21. February 26, 2026

    received in Senate

22. February 25, 2026

    3rd reading, passed 95-0 with Floor Amendment (1)

23. February 23, 2026

    floor amendment (1) filed

24. February 20, 2026

    posted for passage in the Regular Orders of the Day for Monday, February 23 2026

25. February 20, 2026

    2nd reading, to Rules

26. February 19, 2026

    reported favorably, 1st reading, to Calendar

27. January 14, 2026

    to State Government (H)

28. January 07, 2026

    to Committee on Committees (H)

29. January 07, 2026

    introduced in House

Sponsors

• Michael Meredith · Primary
• Chris Fugate · Primary
• George Brown Jr. · Primary
• John Blanton · Primary

Votes

Subjects