Kentucky 2020 Regular Session Status: Enacted

SB 239 — AN ACT relating to local government pension plans.

Last action — signed by Governor (Acts Ch. 121)

  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 March 02, 2020. Enacted.

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Likely to advance 68% · moderate confidence

Where this bill stands today.

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High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • Cleared a recorded vote

    Passed 3 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

594 added · 66 removed

594 line(s) added, 66 removed.

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UNOFFICIAL COPY 20 RS BR 1912 AN ACT relating to local government pension plans.
UNOFFICIAL COPY 20 RS SB 239/EN AN ACT relating to local government pension plans.
(3) The city may create or continue to operate a board for the pension fund and designate trustees of that board to serve as the governing body of the fund, and may fix the powers of the trustees, determine the eligibility of employees or their Page 1 of 22 BR191200.100 - 1912 - XXXX Jacketed UNOFFICIAL COPY 20 RS BR 1912 dependents to a pension or other benefit, and may provide a monthly allowance for employees eligible for a pension.
(3) The city may create or continue to operate a board for the pension fund and designate trustees of that board to serve as the governing body of the fund, and may fix the powers of the trustees, determine the eligibility of employees or their Page 1 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN dependents to a pension or other benefit, and may provide a monthly allowance for employees eligible for a pension.
Any city which provided a pension plan for its employees on or prior to August 1, 1988, shall place employees hired after August 1, 1988, in the County Employees Page 2 of 22 BR191200.100 - 1912 - XXXX Jacketed UNOFFICIAL COPY 20 RS BR 1912 Retirement System.
Any city which provided a pension plan for its employees on or prior to August 1, 1988, shall place employees hired after August 1, 1988, in the County Employees Page 2 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN Retirement System.
Page 3 of 22 BR191200.100 - 1912 - XXXX Jacketed UNOFFICIAL COPY 20 RS BR 1912 Section 2.
Page 3 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN Section 2.
A Page 4 of 22 BR191200.100 - 1912 - XXXX Jacketed UNOFFICIAL COPY 20 RS BR 1912 repeal of that ordinance by the city shall in no wise affect such employees unless by the mutual consent of the city and an employee or employees.
A Page 4 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN repeal of that ordinance by the city shall in no wise affect such employees unless by the mutual consent of the city and an employee or employees.
All residual assets liquidated pursuant to this subsection Page 5 of 22 BR191200.100 - 1912 - XXXX Jacketed UNOFFICIAL COPY 20 RS BR 1912 shall be distributed by the fund's governing body to the city government's general fund so long as the return of assets complies with federal and state law governing the distribution of assets.
All residual assets liquidated pursuant to this subsection Page 5 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN shall be distributed by the fund's governing body to the city government's general fund so long as the return of assets complies with federal and state law governing the distribution of assets.
A majority of the governing body of each fund shall be composed of persons receiving pension benefits from the respective pension systems, and no more than one (1) member of the city legislative body may be a member of the governing body of either the policemen's or the firefighters' pension fund, except if there are fewer than six (6) active and retired members of the policemen's or the firefighters' pension fund, the governing body of the pension fund shall be Page 6 of 22 BR191200.100 - 1912 - XXXX Jacketed UNOFFICIAL COPY 20 RS BR 1912 composed of the mayor, city treasurer or chief financial officer, and two (2) employees appointed by the mayor from the city's respective police department or fire department.
A majority of the governing body of each fund shall be composed of persons receiving pension benefits from the respective pension systems, and no more than one (1) member of the city legislative body may be a member of the governing body of either the policemen's or the firefighters' pension fund, except if there are fewer than six (6) active and retired members of the policemen's or the firefighters' pension fund, the governing body of the pension fund shall be Page 6 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN composed of the mayor, city treasurer or chief financial officer, and two (2) employees appointed by the mayor from the city's respective police department or fire department.
Page 7 of 22 BR191200.100 - 1912 - XXXX Jacketed UNOFFICIAL COPY 20 RS BR 1912 Within thirty (30) days following the distribution of residual assets, the governing body of the fund shall as its last act file a complete report with the legislative body of the city, for retention by the city clerk the same as for other city records, of the actions taken to dissolve the fund and liquidate residual assets of the fund.
Page 7 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN Within thirty (30) days following the distribution of residual assets, the governing body of the fund shall as its last act file a complete report with the legislative body of the city, for retention by the city clerk the same as for other city records, of the actions taken to dissolve the fund and liquidate residual assets of the fund.
The governing board of the fund may annually expend for the Page 8 of 22 BR191200.100 - 1912 - XXXX Jacketed UNOFFICIAL COPY 20 RS BR 1912 necessary expenses connected with the fund, including but not limited to expenses for medical, actuarial, accounting, and legal services, the amount such governing board deems proper.
The governing board of the fund may annually expend for the Page 8 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN necessary expenses connected with the fund, including but not limited to expenses for medical, actuarial, accounting, and legal services, the amount such governing board deems proper.
(b) The governing board of either fund may annually expend for the necessary expenses connected with the fund, including but not limited to expenses for medical, actuarial, accounting, and legal or other professional services, the Page 9 of 22 BR191200.100 - 1912 - XXXX Jacketed UNOFFICIAL COPY 20 RS BR 1912 amount such governing board deems proper.
(b) The governing board of either fund may annually expend for the necessary expenses connected with the fund, including but not limited to expenses for medical, actuarial, accounting, and legal or other professional services, the Page 9 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN amount such governing board deems proper.
The city shall have the right to use assets in the local pension fund, other than assets necessary to pay benefits to the remaining Page 10 of 22 BR191200.100 - 1912 - XXXX Jacketed UNOFFICIAL COPY 20 RS BR 1912 active members of the local policemen's pension system and to retirees and their survivors as determined by actuarial valuation, to assist in the payment of the annual installment cost of alternate participation.
The city shall have the right to use assets in the local pension fund, other than assets necessary to pay benefits to the remaining Page 10 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN active members of the local policemen's pension system and to retirees and their survivors as determined by actuarial valuation, to assist in the payment of the annual installment cost of alternate participation.
After certification by the County Employees Retirement System of eligibility for hazardous duty coverage, each firefighter who becomes a member of the County Employees Retirement Page 11 of 22 BR191200.100 - 1912 - XXXX Jacketed UNOFFICIAL COPY 20 RS BR 1912 System pursuant to this section shall be granted hazardous duty coverage.
After certification by the County Employees Retirement System of eligibility for hazardous duty coverage, each firefighter who becomes a member of the County Employees Retirement Page 11 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN System pursuant to this section shall be granted hazardous duty coverage.
(1) In cities with a pension fund established under KRS 95.520 where there are fewer than six (6) active members of the pension fund, except as provided by subsection Page 12 of 22 BR191200.100 - 1912 - XXXX Jacketed UNOFFICIAL COPY 20 RS BR 1912 (3) of this section, the board of trustees of the policemen's and firefighter's pension fund is composed of the mayor, city treasurer or chief financial officer, and one (1) retired member each from the police and fire departments.
(1) In cities with a pension fund established under KRS 95.520 where there are fewer than six (6) active members of the pension fund, except as provided by subsection Page 12 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN (3) of this section, the board of trustees of the policemen's and firefighter's pension fund is composed of the mayor, city treasurer or chief financial officer, and one (1) retired member each from the police and fire departments.
(5) If there are fewer than twelve (12) active and retired members or beneficiaries of Page 13 of 22 BR191200.100 - 1912 - XXXX Jacketed UNOFFICIAL COPY 20 RS BR 1912 the policemen's and the firefighters' pension fund, the governing body of the fund may elect to offer to individuals entitled to benefits from the fund a one (1) time irrevocable option to convert monthly pension benefits from the fund to monthly annuity benefits from an insurance company for the same amount.
(5) If there are fewer than twelve (12) active and retired members or beneficiaries of Page 13 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN the policemen's and the firefighters' pension fund, the governing body of the fund may elect to offer to individuals entitled to benefits from the fund a one (1) time irrevocable option to convert monthly pension benefits from the fund to monthly annuity benefits from an insurance company for the same amount.
(1) Except for court or administratively ordered current child support, or owed child support, or to-be-owed child support, and except as provided in KRS 65.156, subsection (6) of Section 4 of this Act[KRS 95.530(5)], and subsections (2), (3), and (4) of this section, the policemen's and firefighters' pension fund established Page 14 of 22 BR191200.100 - 1912 - XXXX Jacketed UNOFFICIAL COPY 20 RS BR 1912 under KRS 95.520 shall be held and distributed for the purpose of paying pensions and benefits, and for no other purpose.
(1) Except for court or administratively ordered current child support, or owed child support, or to-be-owed child support, and except as provided in KRS 65.156, subsection (6) of Section 4 of this Act[KRS 95.530(5)], and subsections (2), (3), and (4) of this section, the policemen's and firefighters' pension fund established Page 14 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN under KRS 95.520 shall be held and distributed for the purpose of paying pensions and benefits, and for no other purpose.
Page 15 of 22 BR191200.100 - 1912 - XXXX Jacketed UNOFFICIAL COPY 20 RS BR 1912 (1) There shall be created in cities that elected to adopt the provisions of KRS 95.621 to 95.629 a policemen's and firefighter's pension fund, and a board of trustees for that fund.
Page 15 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN (1) There shall be created in cities that elected to adopt the provisions of KRS 95.621 to 95.629 a policemen's and firefighter's pension fund, and a board of trustees for that fund.
The Page 16 of 22 BR191200.100 - 1912 - XXXX Jacketed UNOFFICIAL COPY 20 RS BR 1912 board of trustees shall be the trustees of the pension fund and of all moneys donated or paid for the relief or pensioning of members of the police and fire departments.
The Page 16 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN board of trustees shall be the trustees of the pension fund and of all moneys donated or paid for the relief or pensioning of members of the police and fire departments.
Page 17 of 22 BR191200.100 - 1912 - XXXX Jacketed UNOFFICIAL COPY 20 RS BR 1912 Section 7.
Page 17 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN Section 7.
Page 18 of 22 BR191200.100 - 1912 - XXXX Jacketed UNOFFICIAL COPY 20 RS BR 1912 (2) The board of trustees membership shall be restructured according to the provisions of this section at the time of the next scheduled election of board members after July 15, 2016.
Page 18 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN (2) The board of trustees membership shall be restructured according to the provisions of this section at the time of the next scheduled election of board members after July 15, 2016.
If there are active members of the fund, there shall be two (2) additional board members who shall be one (1) active member of the fund from each department elected by ballot by the active members of the fund Page 19 of 22 BR191200.100 - 1912 - XXXX Jacketed UNOFFICIAL COPY 20 RS BR 1912 from the respective departments and who shall serve for terms of at least one (1) year with a maximum of two (2) years under rules adopted by the board.
If there are active members of the fund, there shall be two (2) additional board members who shall be one (1) active member of the fund from each department elected by ballot by the active members of the fund Page 19 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN from the respective departments and who shall serve for terms of at least one (1) year with a maximum of two (2) years under rules adopted by the board.
(3) Any member of the board convicted of an offense relating to mismanagement or embezzlement of the fund created pursuant to KRS 95.852 shall be removed from Page 20 of 22 BR191200.100 - 1912 - XXXX Jacketed UNOFFICIAL COPY 20 RS BR 1912 the board and shall be prohibited from serving on the board.
(3) Any member of the board convicted of an offense relating to mismanagement or embezzlement of the fund created pursuant to KRS 95.852 shall be removed from Page 20 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN the board and shall be prohibited from serving on the board.
Within thirty (30) days following the distribution of residual assets, the board of trustees of the fund shall as its last act file a complete report with the legislative body of the city of the actions taken to terminate the fund and liquidate residual assets of the fund for Page 21 of 22 BR191200.100 - 1912 - XXXX Jacketed UNOFFICIAL COPY 20 RS BR 1912 retention by the city clerk the same as for other city records.
Within thirty (30) days following the distribution of residual assets, the board of trustees of the fund shall as its last act file a complete report with the legislative body of the city of the actions taken to terminate the fund and liquidate residual assets of the fund for Page 21 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN retention by the city clerk the same as for other city records.
Page 22 of 22 BR191200.100 - 1912 - XXXX Jacketed
Section 9.
KRS 95.022 is amended to read as follows:
(1) As used in this section:
(a) "City" means any incorporated city, consolidated local government, unified local government, urban-county government, or charter county government, operating under the law of this Commonwealth, and the offices and agencies thereof;
and (b) "Police officer" has the same meaning as "police officer" in KRS 15.420 and as "officer" in KRS 16.010.
(2) Subject to the limitations of subsection (7) of this section, a city may employ individuals as police officers under this section who have retired from the Kentucky Employees Retirement System, the County Employees Retirement System, or the State Police Retirement System.
(3) To be eligible for employment under this section, an individual shall have:
(a) Participated in the Law Enforcement Foundation Program fund under KRS 15.410 to 15.510 or retired as a commissioned officer pursuant to KRS Chapter 16;
(b) Retired with at least twenty (20) years of service credit;
(c) Been separated from service for the period required by KRS 61.637 so that the member's retirement is not voided;
(d) Retired with no administrative charges pending;
and (e) Retired with no preexisting agreement between the individual and the city prior to the individual's retirement for the individual to return to work for the city.
(4) Individuals employed under this section shall:
(a) Serve for a term not to exceed one (1) year.
The one (1) year employment term may be renewed annually at the discretion of the employing city;
Page 22 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN (b) Receive compensation according to the standard procedures applicable to the employing city;
and (c) Be employed based upon need as determined by the employing city.
(5) Notwithstanding any provisions of KRS 16.505 to 16.652, 18A.225 to 18A.2287, 61.510 to 61.705, or 78.510 to 78.852 to the contrary:
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(a) Individuals employed under this section shall continue to receive all retirement and health insurance benefits to which they were entitled upon retiring in the applicable system administered by Kentucky Retirement Systems;
(b) Individuals employed under this section shall not be eligible to receive health insurance coverage through the employing city;
(c) The city shall not pay any employer contributions or retiree health expense reimbursements to the Kentucky Retirement Systems required by KRS 61.637(17) for individuals employed under this section;
and (d) The city shall not pay any insurance contributions to the state health insurance plan, as provided by KRS 18A.225 to 18A.2287, for individuals employed under this section.
(6) Individuals employed under this section shall be subject to any merit system, civil service, or other legislative due process provisions applicable to the employing city.
A decision not to renew a one (1) year appointment term under this section shall not be considered a disciplinary action or deprivation subject to due process.
(7) A city government shall be limited in the number of retired police officers that it may hire under this section as follows:
(a) A city government that employed an average of five (5) or fewer police officers over the course of calendar year 2015 shall not be limited in the number of officers that they may hire under this section;
(b) A city government that employed an average of more than five (5) but fewer Page 23 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN than one hundred (100) police officers over the course of calendar year 2015 shall not hire more than five (5) police officers or a number equal to twenty- five percent (25%) of the police officers employed by the city in calendar year 2015, whichever is greater;
and (c) A city government that employed an average of [more than ]one hundred (100) or more police officers over the course of calendar year 2015 shall not hire more than twenty-five (25) police officers or a number equal to ten percent (10%) of the police officers employed by the city in calendar year 2015, whichever is greater.
(8) Retired police officers employed by a city government for purposes of KRS 158.4414 shall not apply against the limitations provided by subsection (7) of this section.
Section 10.
KRS 61.637 is amended to read as follows:
(1) A retired member who is receiving monthly retirement payments under any of the provisions of KRS 61.510 to 61.705 and 78.510 to 78.852 and who is reemployed as an employee by a participating agency prior to August 1, 1998, shall have his retirement payments suspended for the duration of reemployment.
Monthly payments shall not be suspended for a retired member who is reemployed if he anticipates that he will receive less than the maximum permissible earnings as provided by the Federal Social Security Act in compensation as a result of reemployment during the calendar year.
The payments shall be suspended at the beginning of the month in which the reemployment occurs.
(2) Employer and employee contributions shall be made as provided in KRS 61.510 to 61.705 and 78.510 to 78.852 on the compensation paid during reemployment, except where monthly payments were not suspended as provided in subsection (1) of this section or would not increase the retired member's last monthly retirement allowance by at least one dollar ($1), and the member shall be credited with Page 24 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN additional service credit.
(3) In the month following the termination of reemployment, retirement allowance payments shall be reinstated under the plan under which the member was receiving payments prior to reemployment.
(4) (a) Notwithstanding the provisions of this section, the payments suspended in accordance with subsection (1) of this section shall be paid retroactively to the retired member, or his estate, if he does not receive more than the maximum permissible earnings as provided by the Federal Social Security Act in compensation from participating agencies during any calendar year of reemployment.
(b) If the retired member is paid suspended payments retroactively in accordance with this section, employee contributions deducted during his period of reemployment, if any, shall be refunded to the retired employee, and no service credit shall be earned for the period of reemployment.
(c) If the retired member is not eligible to be paid suspended payments for his period of reemployment as an employee, his retirement allowance shall be recomputed under the plan under which the member was receiving payments prior to reemployment as follows:
1.
The retired member's final compensation shall be recomputed using creditable compensation for his period of reemployment;
however, the final compensation resulting from the recalculation shall not be less than that of the member when his retirement allowance was last determined;
2.
If the retired member initially retired on or subsequent to his normal retirement date, his retirement allowance shall be recomputed by using the formula in KRS 61.595(1);
3.
If the retired member initially retired prior to his normal retirement date, his retirement allowance shall be recomputed using the formula in KRS Page 25 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN 61.595(2), except that the member's age used in computing benefits shall be his age at the time of his initial retirement increased by the number of months of service credit earned for service performed during reemployment;
4.
The retirement allowance payments resulting from the recomputation under this subsection shall be payable in the month following the termination of reemployment in lieu of payments under subparagraph 3.
The member shall not receive less in benefits as a result of the recomputation than he was receiving prior to reemployment or would receive as determined under KRS 61.691;
and 5.
Any retired member who was reemployed prior to March 26, 1974, shall begin making contributions to the system in accordance with the provisions of this section on the first day of the month following March 26, 1974.
(5) A retired member, or his estate, shall pay to the retirement fund the total amount of payments which are not suspended in accordance with subsection (1) of this section if the member received more than the maximum permissible earnings as provided by the Federal Social Security Act in compensation from participating agencies during any calendar year of reemployment, except the retired member or his estate may repay the lesser of the total amount of payments which were not suspended or fifty cents ($0.50) of each dollar earned over the maximum permissible earnings during reemployment if under age sixty-five (65), or one dollar ($1) for every three dollars ($3) earned if over age sixty-five (65).
(6) (a) "Reemployment" or "reinstatement" as used in this section shall not include a retired member who has been ordered reinstated by the Personnel Board under authority of KRS 18A.095.
(b) A retired member who has been ordered reinstated by the Personnel Board Page 26 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN under authority of KRS 18A.095 or by court order or by order of the Human Rights Commission and accepts employment by an agency participating in the Kentucky Employees Retirement System or County Employees Retirement System shall void his retirement by reimbursing the system in the full amount of his retirement allowance payments received.
(7) (a) Effective August 1, 1998, the provisions of subsections (1) to (4) of this section shall no longer apply to a retired member who is reemployed in a position covered by the same retirement system from which the member retired.
Reemployed retired members shall be treated as new members upon reemployment.
Any retired member whose reemployment date preceded August 1, 1998, who does not elect, within sixty (60) days of notification by the retirement systems, to remain under the provisions of subsections (1) to (4) of this section shall be deemed to have elected to participate under this subsection.
(b) A retired member whose disability retirement was discontinued pursuant to KRS 61.615 and who is reemployed in one (1) of the systems administered by the Kentucky Retirement Systems prior to his or her normal retirement date shall have his or her accounts combined upon termination for determining eligibility for benefits.
If the member is eligible for retirement, the member's service and creditable compensation earned as a result of his or her reemployment shall be used in the calculation of benefits, except that the member's final compensation shall not be less than the final compensation last used in determining his or her retirement allowance.
The member shall not change beneficiary or payment option designations.
This provision shall apply to members reemployed on or after August 1, 1998.
(8) If a retired member accepts employment or begins serving as a volunteer with an employer participating in the systems administered by Kentucky Retirement Page 27 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN Systems within twelve (12) months of his or her retirement date, the retired member shall notify the retirement system and the participating employer shall submit the information required or requested by the systems to confirm the individual's employment or volunteer status.
The retired member shall not be required to notify the retirement systems regarding any employment or volunteer service with a participating agency that is accepted after twelve (12) months following his or her retirement date.
(9) If the retired member is under a contract to provide services as an independent contractor or leased employee to an employer participating in the systems administered by Kentucky Retirement Systems within twelve (12) months of his or her retirement date, the member shall submit a copy of that contract to the retirement system, and the retirement system shall determine if the member is an independent contractor or leased employee for purposes of retirement benefits.
The retired member and the participating employer shall submit the information required or requested by the systems to confirm the individual's status as an independent contractor or leased employee.
The retired member shall not be required to notify the retirement systems regarding any services entered into as an independent contractor or leased employee with a participating agency that the employee enters into after twelve (12) months following his or her retirement date.
(10) If a member is receiving a retirement allowance, or has filed the forms required for a retirement allowance, and is employed within one (1) month of the member's initial retirement date in a position that is required to participate in the same retirement system from which the member retired, the member's retirement shall be voided and the member shall repay to the retirement system all benefits received.
The member shall contribute to the member account established for him prior to his voided retirement.
The retirement allowance for which the member shall be eligible upon retirement shall be determined by total service and creditable compensation.
Page 28 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN (11) (a) If a member of the Kentucky Employees Retirement System retires from a department which participates in more than one (1) retirement system and is reemployed within one (1) month of his initial retirement date by the same department in a position participating in another retirement system, the retired member's retirement allowance shall be suspended for the first month of his retirement and the member shall repay to the retirement system all benefits received for the month.
(b) A retired member of the County Employees Retirement System who after initial retirement is hired by the county from which the member retired shall be considered to have been hired by the same employer.
(12) (a) If a hazardous member who retired prior to age fifty-five (55), or a nonhazardous member who retired prior to age sixty-five (65), is reemployed within six (6) months of the member's termination by the same employer, the member shall obtain from his previous and current employers a copy of the job description established by the employers for the position and a statement of the duties performed by the member for the position from which he retired and for the position in which he has been reemployed.
(b) The job descriptions and statements of duties shall be filed with the retirement office.
(13) If the retirement system determines that the retired member has been employed in a position with the same principal duties as the position from which the member retired:
(a) The member's retirement allowance shall be suspended during the period that begins on the month in which the member is reemployed and ends six (6) months after the member's termination;
(b) The retired member shall repay to the retirement system all benefits paid from systems administered by Kentucky Retirement Systems under reciprocity, Page 29 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN including medical insurance benefits, that the member received after reemployment began;
(c) Upon termination, or subsequent to expiration of the six (6) month period from the date of termination, the retired member's retirement allowance based on his initial retirement account shall no longer be suspended and the member shall receive the amount to which he is entitled, including an increase as provided by KRS 61.691;
(d) Except as provided in subsection (7) of this section, if the position in which a retired member is employed after initial retirement is a regular full-time position, the retired member shall contribute to a second member account established for him in the retirement system.
Service credit gained after the member's date of reemployment shall be credited to the second member account;
and (e) Upon termination, the retired member shall be entitled to benefits payable from his second retirement account.
(14) (a) If the retirement system determines that the retired member has not been reemployed in a position with the same principal duties as the position from which he retired, the retired member shall continue to receive his retirement allowance.
(b) If the position is a regular full-time position, the member shall contribute to a second member account in the retirement system.
(15) (a) If a retired member is reemployed at least one (1) month after initial retirement in a different position, or at least six (6) months after initial retirement in the same position, and prior to normal retirement age, the retired member shall contribute to a second member account in the retirement system and continue to receive a retirement allowance from the first member account.
(b) Service credit gained after reemployment shall be credited to the second Page 30 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN member account.
Upon termination, the retired member shall be entitled to benefits payable from the second member account.
(16) A retired member who is reemployed and contributing to a second member account shall not be eligible to purchase service credit under any of the provisions of KRS 16.505 to 16.652, 61.510 to 61.705, or 78.510 to 78.852 which he was eligible to purchase prior to his initial retirement.
(17) Notwithstanding any provision of subsections (1) to (7)(a) and (10) to (15) of this section, the following shall apply to retired members who are reemployed by an agency participating in one (1) of the systems administered by Kentucky Retirement Systems on or after September 1, 2008:
(a) Except as provided by paragraphs (c) and (d) of this subsection, if a member is receiving a retirement allowance from one (1) of the systems administered by Kentucky Retirement Systems, or has filed the forms required to receive a retirement allowance from one (1) of the systems administered by Kentucky Retirement Systems, and is employed in a regular full-time position required to participate in one (1) of the systems administered by Kentucky Retirement Systems or is employed in a position that is not considered regular full-time with an agency participating in one (1) of the systems administered by Kentucky Retirement Systems within three (3) months following the member's initial retirement date, the member's retirement shall be voided, and the member shall repay to the retirement system all benefits received, including any health insurance benefits.
If the member is returning to work in a regular full-time position required to participate in one (1) of the systems administered by Kentucky Retirement Systems:
1.
The member shall contribute to a member account established for him or her in one (1) of the systems administered by Kentucky Retirement Systems, and employer contributions shall be paid on behalf of the Page 31 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN member by the participating employer;
and 2.
Upon subsequent retirement, the member shall be eligible for a retirement allowance based upon total service and creditable compensation, including any additional service or creditable compensation earned after his or her initial retirement was voided;
(b) Except as provided by paragraphs (c) and (d) of this subsection, if a member is receiving a retirement allowance from one (1) of the systems administered by Kentucky Retirement Systems and is employed in a regular full-time position required to participate in one (1) of the systems administered by Kentucky Retirement Systems after a three (3) month period following the member's initial retirement date, the member may continue to receive his or her retirement allowance during the period of reemployment subject to the following provisions:
1.
If a member is reemployed by a participating agency within twelve (12) months of the member's retirement date, the participating agency shall certify in writing on a form prescribed by the board that no prearranged agreement existed between the employee and agency prior to the employee's retirement for the employee to return to work with the participating agency.
If an elected official is reelected to a new term of office in the same position and has retired from the elected office within twelve (12) months prior to taking the new term of office, he or she shall be deemed by the system as having a prearranged agreement under the provisions of this subparagraph and shall have his or her retirement voided.
If the participating agency fails to complete the certification, the member's retirement shall be voided and the provisions of paragraph (a) of this subsection shall apply to the member and the employer.
Employment that is accepted by the retired member after twelve (12) Page 32 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN months following the member's retirement date shall not constitute a prearranged agreement under this paragraph;
2.
Notwithstanding any other provision of KRS Chapter 16, 61, or 78 to the contrary, the member shall not contribute to the systems and shall not earn any additional benefits for any work performed during the period of reemployment;
3.
Except as provided by KRS 70.291 to 70.293, 95.022, and 164.952 and except for any retiree employed as a school resource officer as defined by KRS 158.441, the employer shall pay employer contributions as specified by KRS 61.565 and 61.702 on all creditable compensation earned by the employee during the period of reemployment.
The additional contributions paid shall be used to reduce the unfunded actuarial liability of the systems;
and 4.
Except as provided by KRS 70.291 to 70.293, 95.022, and 164.952 and except for any retiree employed as a school resource officer as defined by KRS 158.441, the employer shall be required to reimburse the systems for the cost of the health insurance premium paid by the systems to provide coverage for the retiree, not to exceed the cost of the single premium.
Effective July 1, 2015, local school boards shall not be required to pay the reimbursement required by this subparagraph for retirees employed by the board for eighty (80) days or less during the fiscal year;
(c) If a member is receiving a retirement allowance from the State Police Retirement System or from hazardous duty retirement coverage with the Kentucky Employees Retirement System or the County Employees Retirement System, or has filed the forms required to receive a retirement allowance from the State Police Retirement System or from hazardous duty retirement Page 33 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN coverage with the Kentucky Employees Retirement System or the County Employees Retirement System, and is employed in a regular full-time position required to participate in the State Police Retirement System or in a hazardous duty position with the Kentucky Employees Retirement System or the County Employees Retirement System within one (1) month following the member's initial retirement date, the member's retirement shall be voided, and the member shall repay to the retirement system all benefits received, including any health insurance benefits.
If the member is returning to work in a regular full-time position required to participate in one (1) of the systems administered by Kentucky Retirement Systems:
1.
The member shall contribute to a member account established for him or her in one (1) of the systems administered by Kentucky Retirement Systems, and employer contributions shall be paid on behalf of the member by the participating employer;
and 2.
Upon subsequent retirement, the member shall be eligible for a retirement allowance based upon total service and creditable compensation, including any additional service or creditable compensation earned after his or her initial retirement was voided;
(d) If a member is receiving a retirement allowance from the State Police Retirement System or from hazardous duty retirement coverage with the Kentucky Employees Retirement System or the County Employees Retirement System and is employed in a regular full-time position required to participate in the State Police Retirement System or in a hazardous duty position with the Kentucky Employees Retirement System or the County Employees Retirement System after a one (1) month period following the member's initial retirement date, the member may continue to receive his or her retirement allowance during the period of reemployment subject to the following provisions:
Page 34 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN 1.
If a member is reemployed by a participating agency within twelve (12) months of the member's retirement date, the participating agency shall certify in writing on a form prescribed by the board that no prearranged agreement existed between the employee and agency prior to the employee's retirement for the employee to return to work with the participating agency.
If an elected official is reelected to a new term of office in the same position and has retired from the elected office within twelve (12) months prior to taking the new term of office, he or she shall be deemed by the system as having a prearranged agreement under the provisions of this subparagraph and shall have his or her retirement voided.
If the participating agency fails to complete the certification, the member's retirement shall be voided and the provisions of paragraph (c) of this subsection shall apply to the member and the employer.
Employment that is accepted by the retired member after twelve (12) months following the member's retirement date shall not constitute a prearranged agreement under this paragraph;
2.
Notwithstanding any other provision of KRS Chapter 16, 61, or 78 to the contrary, the member shall not contribute to the systems and shall not earn any additional benefits for any work performed during the period of reemployment;
3.
Except as provided by KRS 70.291 to 70.293, 95.022, and 164.952 and except for any retiree employed as a school resource officer as defined by KRS 158.441, the employer shall pay employer contributions as specified by KRS 61.565 and 61.702 on all creditable compensation earned by the employee during the period of reemployment.
The additional contributions paid shall be used to reduce the unfunded actuarial liability of the systems;
Page 35 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN 4.
Except as provided by KRS 70.291 to 70.293, 95.022, and 164.952 and except for any retiree employed as a school resource officer as defined by KRS 158.441, the employer shall be required to reimburse the systems for the cost of the health insurance premium paid by the systems to provide coverage for the retiree, not to exceed the cost of the single premium;
(e) Notwithstanding paragraphs (a) to (d) of this subsection, a retired member who qualifies as a volunteer for an employer participating in one (1) of the systems administered by Kentucky Retirement Systems and who is receiving reimbursement of actual expenses, a nominal fee for his or her volunteer services, or both, shall not be considered an employee of the participating employer and shall not be subject to paragraphs (a) to (d) of this subsection if:
1.
Prior to the retired member's most recent retirement date, he or she did not receive creditable compensation from the participating employer in which the retired member is performing volunteer services;
2.
Any reimbursement or nominal fee received prior to the retired member's most recent retirement date has not been credited as creditable compensation to the member's account or utilized in the calculation of the retired member's benefits;
3.
The retired member has not purchased or received service credit under any of the provisions of KRS 61.510 to 61.705 or 78.510 to 78.852 for service with the participating employer for which the retired member is performing volunteer services;
and 4.
Other than the status of volunteer, the retired member does not become an employee, leased employee, or independent contractor of the employer for which he or she is performing volunteer services for a period of at least twenty-four (24) months following the retired Page 36 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN member's most recent retirement date.
If a retired member, who provided volunteer services with a participating employer under this paragraph violates any provision of this paragraph, then he or she shall be deemed an employee of the participating employer as of the date he or she began providing volunteer services and both the retired member and the participating employer shall be subject to paragraphs (a) to (d) of this subsection for the period of volunteer service;
(f) Notwithstanding any provision of this section, any mayor or member of a city legislative body[ who has not participated in the County Employees Retirement System prior to retirement, but who is otherwise eligible to retire from the Kentucky Employees Retirement System or the State Police Retirement System,] shall not be [:
1.
]required to resign from his or her position as mayor or as a member of the city legislative body in order to begin drawing benefits from the systems administered by Kentucky Retirement Systems[Kentucky Employees Retirement System or the State Police Retirement System;
] or [ 2.
]subject to any provision of this section as it relates solely to his or her service as a mayor or member of the city legislative body, if the mayor or member of a city legislative body:
1.
Has not participated in the County Employees Retirement System prior to retirement, but is otherwise eligible to retire from the Kentucky Employees Retirement System or the State Police Retirement System;
or 2.
Has been or is participating in the County Employees Retirement System and is at least sixty-two (62) years of age.
If a mayor or member of a city legislative body who is at least sixty-two (62) years of Page 37 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN age retires from the systems administered by Kentucky Retirement Systems but remains in office after his or her effective retirement date, the mayor or member of the city legislative body shall not accrue any further service credit or benefits in the systems administered by Kentucky Retirement Systems for any employment occurring on or after the effective retirement date;
(g) If a member is receiving a retirement allowance from any of the retirement systems administered by the Kentucky Retirement Systems and enters into a contract or becomes a leased employee of an employer under contract with an employer participating in one (1) of the systems administered by the Kentucky Retirement Systems:
1.
At any time following retirement, if the system determines the employment arrangement does qualify as an independent contractor or leased employee, the member may continue to receive his or her retirement allowance during the period of the contract;
2.
Within three (3) months following the member's initial retirement date, if the system determines the employment arrangement does not qualify as an independent contractor or leased employee, the member's retirement shall be voided in accordance with paragraph (a) of this subsection;
3.
After three (3) months but within twelve (12) months following the member's initial retirement, if the system determines the employment arrangement does not qualify as an independent contractor or leased employee and that a prearranged agreement existed between the member and the agency for the member to return to work with the agency, the member's retirement shall be voided in accordance with paragraph (a) of this subsection;
and Page 38 of 39 SB023920.100 - 1912 - XXXX Engrossed UNOFFICIAL COPY 20 RS SB 239/EN 4.
After a twelve (12) month period following the member's initial retirement, the member may continue to receive his or her retirement allowance during the period of the contract and the member shall not be required to notify the system or submit any documentation for purposes of this section to the system.
The initiation of a contract or the initial date of the leased employment of a retired member by a participating agency that occurs after twelve (12) months or more following the retired member's retirement date shall not constitute a prearranged agreement under this subsection;
and (h) The Kentucky Retirement Systems shall issue a final determination regarding a certification of the absence of a prearranged agreement or the retired member's qualification as an independent contractor or leased employee as required under this section no later than thirty (30) days after the retired member and participating employer provide all required forms and additional information required by the Kentucky Retirement Systems.
(18) The Kentucky Retirement Systems shall promulgate administrative regulations to implement the requirements of this section, including incorporating by reference board-prescribed forms that a retired member and participating agency shall provide the systems under subsections (8), (9), and (17) of this section.
Page 39 of 39 SB023920.100 - 1912 - XXXX Engrossed
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Action History

  1. signed by Governor (Acts Ch. 121)

  2. delivered to Governor

  3. enrolled, signed by Speaker of the House

  4. enrolled, signed by President of the Senate

  5. passed 33-0

  6. Senate concurred in House Committee Substitute (1)

  7. posted for passage for concurrence in House Committee Substitute (1)

  8. to Rules (S)

  9. received in Senate

  10. 3rd reading, passed 78-9 with Committee Substitute (1)

  11. placed in the Orders of the Day

  12. taken from Rules

  13. reported favorably, 2nd reading, to Rules with Committee Substitute (1)

  14. posted in committee

  15. returned to Local Government (H)

  16. 1st reading

  17. taken from Local Government (H)

  18. to Local Government (H)

  19. received in House

  20. 3rd reading, passed 34-0

  21. posted for passage in the Consent Orders of the Day for Tuesday, March 17, 2020

  22. 2nd reading, to Rules

  23. reported favorably, 1st reading, to Consent Calendar

  24. to State & Local Government (S)

  25. introduced in Senate

Sponsorship breakdown

Export CSV (upgrade) →

0 sponsors · 0 co-sponsors · 138 not signed on · 3 voted No

Sponsors (0)

None.

Co-sponsors (0)

None.

Not signed on (138)

138 members have not signed on to this bill.

Show all 138 →

"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 SB 239 w/hcs1 FINAL PASSAGE

Passed 33 Yea · 0 Nay · 5 Other
Party YeaNayPresentNot Voting
Unaffiliated 19004
Republican 14000
Democrat 0001
Total 33005
% of votes cast 87%0%0%13%
How each member voted (38)
Member Party Vote
Alvarado — Yea
Parrett — Yea
Thomas — Yea
Buford — Yea
Hornback — Yea
Turner — Yea
Humphries — Yea
Robinson — Yea
Carroll D — Yea
Schickel — Yea
Castlen — Yea
McGarvey — Yea
Schroder — Yea
Westerfield — Yea
Embry — Yea
Meredith — Yea
Nemes — Yea
Thayer — Yea
Harris — Yea
Carroll J — Not Voting
Harper Angel — Not Voting
Kerr — Not Voting
Clark — Not Voting
Gerald A. Neal Democrat Not Voting
Brandon Smith Republican Yea
Christian McDaniel Republican Yea
David P. Givens Republican Yea
Jared Carpenter Republican Yea
Jimmy Higdon Republican Yea
Julie Raque Adams Republican Yea
Max Wise Republican Yea
Mike Wilson Republican Yea
Phillip Wheeler Republican Yea
Rick Girdler Republican Yea
Robby Mills Republican Yea
Robert Stivers Republican Yea
Robin L. Webb Republican Yea
Stephen West Republican Yea

Official roll call →

Pass

Passed 78 Yea · 9 Nay · 14 Other
Party YeaNayPresentNot Voting
Republican 31000
Unaffiliated 456012
Democrat 2302
Total 789014
% of votes cast 77%9%0%14%
How each member voted (101)
Member Party Vote
Fischer — Yea
Huff R — Yea
Bechler — Yea
Frazier — Yea
Huff T — Yea
Miller J — Yea
Santoro — Yea
Bentley — Yea
Jenkins — Yea
Minter — Yea
Schamore — Yea
Sheldon — Yea
Nemes — Yea
Sims — Yea
Booker — Yea
Glenn — Yea
Koenig — Yea
Stone — Yea
Lee — Yea
Branham Clark — Yea
Graviss — Yea
Lewis D — Yea
Pratt — Yea
Thomas — Yea
Lewis S — Yea
Prunty — Yea
Brenda — Yea
Harris — Yea
Raymond — Yea
Massey — Yea
Webber — Yea
Cantrell — Yea
Hatton — Yea
Wheatley — Yea
Heath — Yea
McCoy — Yea
DuPlessis — Yea
Rothenburger — Yea
Wiederstein — Yea
Hinkle — Yea
Meredith — Yea
Rowland — Yea
Yates — Yea
Howard — Yea
Meyer — Yea
Brown G — Nay
Graham — Nay
Meeks — Nay
Donohue — Nay
Scott — Nay
Westrom — Nay
Burch — Not Voting
Goforth — Not Voting
Miller C — Not Voting
Sorolis — Not Voting
Carney — Not Voting
Hoover — Not Voting
Palumbo — Not Voting
Stewart — Not Voting
Turner — Not Voting
Flood — Not Voting
Rand — Not Voting
COMMONWEALTH OF KENTUCKY SENATE — Not Voting
Al Gentry Democrat Yea
Ashley Tackett Laferty Democrat Not Voting
Lisa Willner Democrat Nay
Mary Lou Marzian Democrat Not Voting
Nima Kulkarni Democrat Nay
Pamela Stevenson Democrat Nay
Tina Bojanowski Democrat Yea
Aaron Reed Republican Yea
Adam Bowling Republican Yea
Bobby McCool Republican Yea
Chris Freeland Republican Yea
Chris Fugate Republican Yea
Daniel Elliott Republican Yea
David Hale Republican Yea
David Meade Republican Yea
David W. Osborne Republican Yea
Greg Elkins Republican Yea
James Tipton Republican Yea
Jason Petrie Republican Yea
Jim Gooch Jr. Republican Yea
John Blanton Republican Yea
Ken Upchurch Republican Yea
Kim Banta Republican Yea
Kim King Republican Yea
Kimberly Poore Moser Republican Yea
Mark Hart Republican Yea
Matthew Koch Republican Yea
Myron Dossett Republican Yea
Nancy Tate Republican Yea
Randy Bridges Republican Yea
Richard White Republican Yea
Samara Heavrin Republican Yea
Savannah Maddox Republican Yea
Steve Bratcher Republican Yea
Steve Riley Republican Yea
Steven Rudy Republican Yea
Suzanne Miles Republican Yea
T.J. Roberts Republican Yea

Official roll call →

PASS SB 239

Passed 34 Yea · 0 Nay · 4 Other
Party YeaNayPresentNot Voting
Unaffiliated 19004
Republican 14000
Democrat 1000
Total 34004
% of votes cast 89%0%0%11%
How each member voted (38)
Member Party Vote
Alvarado — Yea
Nemes — Yea
Thomas — Yea
Buford — Yea
Hornback — Yea
Turner — Yea
Humphries — Yea
Robinson — Yea
Carroll D — Yea
Kerr — Yea
Schickel — Yea
Castlen — Yea
Schroder — Yea
Westerfield — Yea
Clark — Yea
McGarvey — Yea
Meredith — Yea
Thayer — Yea
Harris — Yea
Carroll J — Not Voting
Embry — Not Voting
Harper Angel — Not Voting
Parrett — Not Voting
Gerald A. Neal Democrat Yea
Brandon Smith Republican Yea
Christian McDaniel Republican Yea
David P. Givens Republican Yea
Jared Carpenter Republican Yea
Jimmy Higdon Republican Yea
Julie Raque Adams Republican Yea
Max Wise Republican Yea
Mike Wilson Republican Yea
Phillip Wheeler Republican Yea
Rick Girdler Republican Yea
Robby Mills Republican Yea
Robert Stivers Republican Yea
Robin L. Webb Republican Yea
Stephen West Republican Yea

Official roll call →

Subjects

finance labor
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