Kentucky 2024 Regular Session Status: Passed Senate 1 R cosponsors

SB 4 — AN ACT relating to sick leave for members of the Teachers' Retirement System and declaring an emergency.

Last action — 2nd reading, to Rules

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

This bill died with 2024 Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there are no live odds of enactment. It would have to be reintroduced in the current session to move again.

Summary

Amend KRS 161.155 to specify that sick leave payments made to certified school employees who began participating in the Teachers' Retirement System (TRS) prior to January 1, 2022, and who retire from TRS on or after July 1, 2024, shall be limited to the sick leave accrued by the employee as of June 30, 2024, plus no more than 10 additional sick leave days accrued each fiscal year thereafter; provide that the 10 additional days eligible for payment shall not include personal leave, emergency leave, or other forms of non-sick leave balances; require each school district to annually report sick leave balances to TRS beginning with the fiscal year ending June 30, 2024 and specify contents of the report; amend KRS 161.152 and 161.154 to further clarify that emergency leave and personal leave shall not be converted to sick leave under KRS 161.155; amend KRS 161.400 to require TRS to annually report in the annual actuarial valuation the total liabilities and costs of the sick leave program created by KRS 161.155; amend KRS 161.623 to allow school districts to convert excess sick leave accrued annually in excess of 10 days specified by the bill to service credit in TRS the school district pays the cost of conversion; amend KRS 161.643 to include new sick leave reporting requirements in the annual statutory reporting requirements for TRS employers; provide that the Auditor of Public Accounts shall perform a special audit of the sick leave program to ensure sick leave balances are being reported correctly to TRS and specify that TRS shall pay the costs of the audit; EMERGENCY.

Bill Text

What changed in the latest version

529 added · 272 removed

529 line(s) added, 272 removed.

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UNOFFICIAL COPY 24 RS BR 1563 AN ACT relating to sick leave for members of the Teachers' Retirement System and declaring an emergency.
UNOFFICIAL COPY 24 RS SB 4/GA AN ACT relating to sick leave for members of the Teachers' Retirement System and declaring an emergency.
Sick leave shall be granted to a teacher or employee if he or she presents a personal statement or a certificate of a physician stating that the teacher or employee was ill, that the teacher or employee was absent Page 1 of 14 XXXX 1/11/2024 1:12 PM Jacketed UNOFFICIAL COPY 24 RS BR 1563 for the purpose of attending to a member of his or her immediate family who was ill, or for the purpose of mourning a member of his or her immediate family.
Sick leave shall be granted to a teacher or employee if he or she presents a personal statement or a certificate of a physician stating that the teacher or employee was ill, that the teacher or employee was absent Page 1 of 23 SB000410.100 - 1563 - XXXX 2/14/2024 4:12 PM GA UNOFFICIAL COPY 24 RS SB 4/GA for the purpose of attending to a member of his or her immediate family who was ill, or for the purpose of mourning a member of his or her immediate family.
If the teacher's or employee's workers' compensation income benefits cease during the one (1) year period after the assault, the district shall also Page 2 of 14 XXXX 1/11/2024 1:12 PM Jacketed UNOFFICIAL COPY 24 RS BR 1563 cease to make payments under this paragraph;
If the teacher's or employee's workers' compensation income benefits cease during the one (1) year period after the assault, the district shall also Page 2 of 23 SB000410.100 - 1563 - XXXX 2/14/2024 4:12 PM GA UNOFFICIAL COPY 24 RS SB 4/GA cease to make payments under this paragraph;
Page 3 of 14 XXXX 1/11/2024 1:12 PM Jacketed UNOFFICIAL COPY 24 RS BR 1563 (5) Accumulated days of sick leave shall be granted to a teacher or employee if, prior to the opening day of the school year, a statement or a certificate of a physician is presented to the district board of education, stating that the teacher or employee is unable to commence his or her duties on the opening day of the school year, but will be able to assume his or her duties within a period of time that the board determines to be reasonable.
Page 3 of 23 SB000410.100 - 1563 - XXXX 2/14/2024 4:12 PM GA UNOFFICIAL COPY 24 RS SB 4/GA (5) Accumulated days of sick leave shall be granted to a teacher or employee if, prior to the opening day of the school year, a statement or a certificate of a physician is presented to the district board of education, stating that the teacher or employee is unable to commence his or her duties on the opening day of the school year, but will be able to assume his or her duties within a period of time that the board determines to be reasonable.
Page 4 of 14 XXXX 1/11/2024 1:12 PM Jacketed UNOFFICIAL COPY 24 RS BR 1563 1.
Page 4 of 23 SB000410.100 - 1563 - XXXX 2/14/2024 4:12 PM GA UNOFFICIAL COPY 24 RS SB 4/GA 1.
Additional days may be used when the need Page 5 of 14 XXXX 1/11/2024 1:12 PM Jacketed UNOFFICIAL COPY 24 RS BR 1563 is verified by a physician's statement.
Additional days may be used when the need Page 5 of 23 SB000410.100 - 1563 - XXXX 2/14/2024 4:12 PM GA UNOFFICIAL COPY 24 RS SB 4/GA is verified by a physician's statement.
(10) (a) After July 1, 1982, a district board of education may compensate, at the time of retirement or upon the death of a member in active contributing status at the time of death who was eligible to retire by reason of service, an employee or a teacher, or the estate of an employee or teacher, for each unused sick leave day, subject to the limitations of this subsection.
(10) (a) After July 1, 1982, a district board of education may compensate, at the time of retirement or upon the death of a member in active contributing status at the time of death who was eligible to retire by reason of service, an employee or a teacher, or the estate of an employee or teacher, for each unused sick leave day.
(c) For a teacher or employee who becomes a nonuniversity member of the Teachers' Retirement System on or after January 1, 2022, as provided by KRS 161.220, payment for unused sick leave days under this subsection shall not be incorporated into the annual compensation used to calculate the teacher's or employee's retirement allowance in the foundational benefit component as described by KRS 161.633 but may be deposited into the nonuniversity member's supplemental benefit component as provided by KRS 161.635.
(c) 1.
(d) For a teacher or employee who begins employment with a local school district on or after July 1, 2008, the maximum amount of unused sick leave days a district board of education may recognize in calculating the payment of Page 6 of 14 XXXX 1/11/2024 1:12 PM Jacketed UNOFFICIAL COPY 24 RS BR 1563 compensation to the teacher or employee under this subsection shall not exceed three hundred (300) days.
For a teacher or employee who becomes a nonuniversity member of the Teachers' Retirement System prior to January 1, 2022, as defined in KRS 161.220, and who retires on or after July 1, 2024, the payment for unused sick leave days that is included in the calculation of the retiring employee's or teacher's retirement allowance as provided by paragraph (b) of this subsection shall be limited to the payment attributable to sick leave days accrued as of June 30, 2024, adjusted annually for each school year thereafter for sick leave accrued or used during the school year not to exceed an annual increase in the sick leave balance of more than ten (10) days.
(e) For a teacher or employee who becomes a nonuniversity member of the Teachers' Retirement System prior to January 1, 2022, as defined in KRS 161.220, who retires on or after July 1, 2024, sick leave days that are eligible for compensation under this subsection shall be limited to the sick leave accrued as of June 30, 2024, subject to the following adjustments and limitations:
Page 6 of 23 SB000410.100 - 1563 - XXXX 2/14/2024 4:12 PM GA UNOFFICIAL COPY 24 RS SB 4/GA 2.
1.
For a teacher or employee who becomes a nonuniversity member of the Teachers' Retirement System on or after January 1, 2022, as provided by KRS 161.220, payment for unused sick leave days under this subsection shall not be incorporated into the annual compensation used to calculate the teacher's or employee's retirement allowance in the foundational benefit component as described by KRS 161.633 but may be deposited into the nonuniversity member's supplemental benefit component as provided by KRS 161.635.
The sick leave balance shall be reduced to reflect any sick leave used by the teacher or employee on or after July 1, 2024;
(d) For a teacher or employee who begins employment with a local school district on or after July 1, 2008, the maximum amount of unused sick leave days a district board of education may recognize in calculating the payment of compensation to the teacher or employee under this subsection shall not exceed three hundred (300) days.
2.
(e) For the fiscal year ending June 30, 2024, and for each fiscal year thereafter, each school district shall annually report to the Teachers' Retirement System the sick leave balances for each teacher and employee subject to this paragraph as part of the annual reporting requirements under Section 5 of this Act.
The sick leave balance shall be increased by no more than ten (10) days of sick leave for the teacher or employee for each fiscal year beginning on or after July 1, 2024, and the increase shall not include any personal days, emergency days, vacation days, sick leave days purchased pursuant to subsection (6) of this section, or any other form of non-sick leave balances offered by the district board of education to teachers or employees;
The report shall include for each teacher or employee the unused sick leave days accrued at the beginning of the fiscal year, the sick leave days accrued during the fiscal year, the sick leave days used during the fiscal year, and the balance of unused sick leave days at the end of the fiscal year.
and 3.
(11) Any statute to the contrary notwithstanding, employees and teachers who transferred from the Department of Education to a school district, from a school district to the Department of Education, or from one (1) school district to another school district after July 15, 1981, shall receive credit for any unused sick leave to which the employee or teacher was entitled on the date of transfer.
The limitations established by paragraph (d) of this subsection.
This credit shall Page 7 of 23 SB000410.100 - 1563 - XXXX 2/14/2024 4:12 PM GA UNOFFICIAL COPY 24 RS SB 4/GA be for the purposes set forth in subsection (10) of this section.
For the fiscal year ending June 30, 2024, and for each fiscal year thereafter, each school district shall annually report to the Teachers' Retirement System the sick leave balances for each teacher and employee subject to this paragraph as part of the annual reporting requirements under Section 6 of this Act.
The report shall include for each teacher or employee the sick leave accrued at the beginning of the fiscal year, the sick leave used during the fiscal year, the sick leave accrued under the limitation of this paragraph during the fiscal year, and the sick leave balance at the end of the fiscal year.
Page 7 of 14 XXXX 1/11/2024 1:12 PM Jacketed UNOFFICIAL COPY 24 RS BR 1563 (11) Any statute to the contrary notwithstanding, employees and teachers who transferred from the Department of Education to a school district, from a school district to the Department of Education, or from one (1) school district to another school district after July 15, 1981, shall receive credit for any unused sick leave to which the employee or teacher was entitled on the date of transfer.
This credit shall be for the purposes set forth in subsection (10) of this section.
KRS 161.152 is amended to read as follows:
KRS 161.220 is amended to read as follows:
(1) For the purpose of this section, "school personnel" shall mean any person employed as a full-time employee in the public schools.
As used in KRS 161.220 to 161.716 and 161.990:
(2) Each district board of education may allow each person employed as a full-time employee in the public schools not to exceed three (3) emergency days per school year for reasons designated by the district board of education, without loss of salary to the employee and without affecting his or her sick leave.
(1) "Retirement system" means the arrangement provided for in KRS 161.220 to 161.716 and 161.990 for payment of allowances to members;
(3) Emergency[Personal] leave granted under this section shall not be treated as having effect on the provisions of KRS 161.155, and the emergency leave accrued on or after July 1, 2024, shall not be converted or transferable to sick leave under Section 1 of this Act, except that school personnel, after using the maximum days allowed in subsection (2) of this section, may, upon the recommendation of the school district superintendent and approval of the district board of education, use up to three (3) sick-leave days per school year for emergency leave according to the district board policy as established pursuant to subsection (2) of this section.
(2) "Retirement allowance" means the amount annually payable during the course of his or her natural life to a member who has been retired by reason of service;
(4) Payments made by a district board of education under the provisions of this section are presumed to be for services rendered and for the benefit of the common schools and the payments do not affect the eligibility of any school district to participate in the public school funding program as established in KRS Chapter 157.
(3) "Disability allowance" means the amount annually payable to a member retired by reason of disability;
Page 8 of 14 XXXX 1/11/2024 1:12 PM Jacketed UNOFFICIAL COPY 24 RS BR 1563 Section 3.
(4) "Member" means the commissioner of education, deputy commissioners, associate commissioners, and all division directors in the State Department of Education, employees participating in the system pursuant to KRS 196.167(3)(b)1., and any full-time teacher or professional occupying a position requiring certification or graduation from a four (4) year college or university, as a condition of employment, and who is employed by public boards, institutions, or agencies as follows:
KRS 161.154 is amended to read as follows:
(a) Local boards of education and public charter schools if the public charter school satisfies the criteria set by the Internal Revenue Service to participate in a governmental retirement plan;
(1) For the purpose of this section, "school employees" shall mean any person for whom certification is required as a basis of employment in the public schools.
(b) Eastern Kentucky University, Kentucky State University, Morehead State University, Murray State University, Western Kentucky University, and any community colleges established under the control of these universities;
(2) Each district board of education may provide up to three (3) personal leave days per school year to school employees, without loss of salary to the employee and without affecting any other type of leave granted by law, regulation, or school board policy.
(c) State-operated secondary area vocational education or area technology centers, Kentucky School for the Blind, and Kentucky School for the Deaf;
Local boards of education may establish policy regarding the number of teachers who may take personal leave on any one (1) day.
(d) Other public education agencies as created by the General Assembly and those members of the administrative staff of the Teachers' Retirement System Page 8 of 23 SB000410.100 - 1563 - XXXX 2/14/2024 4:12 PM GA UNOFFICIAL COPY 24 RS SB 4/GA of the State of Kentucky whom the board of trustees may designate by administrative regulation;
(3) Personal leave granted under this section shall not be treated as having effect on the provisions of KRS 161.152 to 161.155, and personal leave accrued on or after July 1, 2024, shall not be converted or transferable to sick leave under the provisions Section 1 of this Act.
(e) Regional cooperative organizations formed by local boards of education or other public educational institutions listed in this subsection, for the purpose of providing educational services to the participating organizations;
[and ]Personal leave used by the school employee shall be supported by personal statement of the school employee stating that the leave taken is personal in nature;
(f) All full-time members of the staffs of the Kentucky Association of School Administrators, Kentucky Education Association, Kentucky Vocational Association, Kentucky High School Athletic Association, Kentucky Academic Association, and the Kentucky School Boards Association who were members of the Kentucky Teachers' Retirement System or were qualified for a position covered by the system at the time of employment by the association in the event that the board of directors of the respective association petitions to be included.
no other reason for or verification of the leave shall be required.
The board of trustees of the Kentucky Teachers' Retirement System may designate by resolution whether part-time employees of the petitioning association are to be included.
(4) Payments to school employees made by a district board of education under the provisions of this section are presumed to be for services rendered and for the benefit of the common schools and such payments do not affect the eligibility of any school district to share in the distribution of funds from the public school foundation program fund as established in KRS Chapter 157.
The state shall make no contributions on account of these employees, either full-time or part- time.
The association shall make the employer's contributions, including any contribution that is specified under KRS 161.550.
The provisions of this paragraph shall be applicable to persons in the employ of the associations on or subsequent to July 1, 1972;
(g) Employees of the Council on Postsecondary Education who were employees of the Department for Adult Education and Literacy and who were members of the Kentucky Teachers' Retirement System at the time the department was transferred to the council pursuant to Executive Order 2003-600;
(h) The Office of Career and Technical Education;
(i) The Office of Vocational Rehabilitation;
(j) The Kentucky Educational Collaborative for State Agency Children;
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Page 9 of 23 SB000410.100 - 1563 - XXXX 2/14/2024 4:12 PM GA UNOFFICIAL COPY 24 RS SB 4/GA (k) The Governor's Scholars Program;
(l) Any person who is retired for service from the retirement system and is reemployed by an employer identified in this subsection in a position that the board of trustees deems to be a member, except that any person who becomes a member on or after January 1, 2022, and subsequently draws a monthly lifetime retirement allowance, shall upon reemployment after retirement not earn a second retirement account;
(m) Employees of the former Cabinet for Workforce Development who are transferred to the Kentucky Community and Technical College System and who occupy positions covered by the Kentucky Teachers' Retirement System shall remain in the Teachers' Retirement System.
New employees occupying these positions, as well as newly created positions qualifying for Teachers' Retirement System coverage that would have previously been included in the former Cabinet for Workforce Development, shall be members of the Teachers' Retirement System;
(n) Effective January 1, 1998, employees of state community colleges who are transferred to the Kentucky Community and Technical College System shall continue to participate in federal old age, survivors, disability, and hospital insurance, and a retirement plan other than the Kentucky Teachers' Retirement System offered by Kentucky Community and Technical College System.
New employees occupying positions in the Kentucky Community and Technical College System as referenced in KRS 164.5807(5) that would not have previously been included in the former Cabinet for Workforce Development, shall participate in federal old age, survivors, disability, and hospital insurance and have a choice at the time of employment of participating in a retirement plan provided by the Kentucky Community and Technical College System, including participation in the Kentucky Teachers' Retirement System, Page 10 of 23 SB000410.100 - 1563 - XXXX 2/14/2024 4:12 PM GA UNOFFICIAL COPY 24 RS SB 4/GA on the same basis as faculty of the state universities as provided in KRS 161.540 and 161.620;
(o) Employees of the Office of General Counsel, the Office of Budget and Administrative Services, and the Office of Quality and Human Resources within the Office of the Secretary of the former Cabinet for Workforce Development and the commissioners of the former Department for Adult Education and Literacy and the former Department for Technical Education who were contributing to the Kentucky Teachers' Retirement System as of July 15, 2000;
(p) Employees of the Kentucky Department of Education only who are graduates of a four (4) year college or university, notwithstanding a substitution clause within a job classification, and who are serving in a professional job classification as defined by the department;
(q) The Governor's School for Entrepreneurs Program;
(r) Employees of the Office of Adult Education within the Department of Workforce Development in the Education and Labor Cabinet who were employees of the Council on Postsecondary Education, Kentucky Adult Education Program and who were members of the Kentucky Teachers' Retirement System at the time the Program was transferred to the cabinet pursuant to Executive Orders 2019-0026 and 2019-0027;
and (s) Employees of the Education Professional Standards Board who were members of the Kentucky Teachers' Retirement System at the time the employees were transferred to the Kentucky Department of Education pursuant to Executive Order 2020-590;
(5) "Present teacher" means any teacher who was a teacher on or before July 1, 1940, and became a member of the retirement system created by 1938 (1st Extra.
Sess.) Ky.
Acts ch.
1, on the date of the inauguration of the system or within one (1) year Page 11 of 23 SB000410.100 - 1563 - XXXX 2/14/2024 4:12 PM GA UNOFFICIAL COPY 24 RS SB 4/GA after that date, and any teacher who was a member of a local teacher retirement system in the public elementary or secondary schools of the state on or before July 1, 1940, and continued to be a member of the system until he or she, with the membership of the local retirement system, became a member of the state Teachers' Retirement System or who becomes a member under the provisions of KRS 161.470(4);
(6) "New teacher" means any member not a present teacher;
(7) "Prior service" means the number of years during which the member was a teacher in Kentucky prior to July 1, 1941, except that not more than thirty (30) years' prior service shall be allowed or credited to any teacher;
(8) "Subsequent service" means the number of years during which the teacher is a member of the Teachers' Retirement System after July 1, 1941;
(9) "Final average salary" means the average of the five (5) highest annual salaries which the member has received for service in a covered position and on which the member has made contributions, or on which the public board, institution, or agency has picked-up member contributions pursuant to KRS 161.540(2), or the average of the five (5) years of highest salaries as defined in KRS 61.680(2)(a), which shall include picked-up member contributions.
Additionally, the board of trustees may approve a final average salary based upon the average of the three (3) highest salaries for individuals who become members prior to January 1, 2022, who are at least fifty-five (55) years of age and have a minimum of twenty-seven (27) years of Kentucky service credit.
However, if any of the five (5) or three (3) highest annual salaries used to calculate the final average salary was paid within the three (3) years immediately prior to the date of the member's retirement for individuals who become members prior to January 1, 2022, or within the five (5) years immediately prior to the date of the member's retirement for individuals who become members on or after January 1, 2022, the amount of salary to be included Page 12 of 23 SB000410.100 - 1563 - XXXX 2/14/2024 4:12 PM GA UNOFFICIAL COPY 24 RS SB 4/GA for each of those three (3) years or five (5) years, as applicable, for the purpose of calculating the final average salary shall be limited to the lesser of:
(a) The member's actual salary;
or (b) The member's annual salary that was used for retirement purposes during each of the prior three (3) years or five (5) years, as applicable, plus a percentage increase equal to the percentage increase received by all other members employed by the public board, institution, or agency, or for members of school districts, the highest percentage increase received by members on any one (1) rank and step of the salary schedule of the school district.
The increase shall be computed on the salary that was used for retirement purposes.
The board of trustees may promulgate an administrative regulation in accordance with KRS Chapter 13A to establish a methodology for measuring the limitation so that the combined increases in salary for each of the last three (3) full years of salary prior to retirement shall not exceed the total permissible percentage increase received by other members of the employer for the same three (3) year period.
For individuals who became members of the retirement system prior to July 1, 2021, this limitation shall not apply if the member receives an increase in salary in a percentage exceeding that received by the other members, and this increase was accompanied by a corresponding change in position or in length of employment.
The board of trustees may promulgate an administrative regulation in accordance with KRS Chapter 13A to provide definitions for a corresponding change in position or in length of employment.
This limitation shall also not apply to the payment to a member for accrued annual leave if the individual becomes a member before July 1, 2008, or accrued sick leave which is authorized by statute and which shall, for individuals subject to KRS 161.155(10) who became nonuniversity members of the system prior to January 1, 2022, be included as part of a retiring Page 13 of 23 SB000410.100 - 1563 - XXXX 2/14/2024 4:12 PM GA UNOFFICIAL COPY 24 RS SB 4/GA member's annual compensation for the member's last year of active service as determined and limited by subsection (10) of Section 1 of this Act;
(10) "Annual compensation" means the total salary received by a member as compensation for all services performed in employment covered by the retirement system during a fiscal year.
Annual compensation shall not include payment for any benefit or salary adjustments made by the public board, institution, or agency to the member or on behalf of the member which is not available as a benefit or salary adjustment to other members employed by that public board, institution, or agency.
Annual compensation shall not include the salary supplement received by a member under KRS 157.197(2)(c), 158.6455, or 158.782 on or after July 1, 1996.
Under no circumstances shall annual compensation include compensation that is earned by a member while on assignment to an organization or agency that is not a public board, institution, or agency listed in subsection (4) of this section.
In the event that federal law requires that a member continue membership in the retirement system even though the member is on assignment to an organization or agency that is not a public board, institution, or agency listed in subsection (4) of this section, the member's annual compensation for retirement purposes shall be deemed to be the annual compensation, as limited by subsection (9) of this section, last earned by the member while still employed solely by and providing services directly to a public board, institution, or agency listed in subsection (4) of this section.
The board of trustees shall determine if any benefit or salary adjustment qualifies as annual compensation.
For an individual who becomes a member on or after July 1, 2008, annual compensation shall not include lump-sum payments upon termination of employment for accumulated annual or compensatory leave;
(11) "Age of member" means the age attained on the first day of the month immediately following the birthdate of the member.
This definition is limited to retirement eligibility and does not apply to tenure of members;
Page 14 of 23 SB000410.100 - 1563 - XXXX 2/14/2024 4:12 PM GA UNOFFICIAL COPY 24 RS SB 4/GA (12) "Employ," and derivatives thereof, means relationships under which an individual provides services to an employer as an employee, as an independent contractor, as an employee of a third party, or under any other arrangement as long as the services provided to the employer are provided in a position that would otherwise be covered by the Kentucky Teachers' Retirement System and as long as the services are being provided to a public board, institution, or agency listed in subsection (4) of this section;
(13) "Regular interest" means:
(a) For an individual who becomes a member prior to July 1, 2008, interest at three percent (3%) per annum;:
(b) For an individual who becomes a member on or after July 1, 2008, but prior to January 1, 2022, interest at two and one-half percent (2.5%) per annum for purposes of crediting interest to the teacher savings account or any other contributions made by the employee that are refundable to the employee upon termination of employment;
and (c) For an individual who becomes a member on or after January 1, 2022, the rolling five (5) year yield on a thirty (30) year United States Treasury bond as of the end of May prior to the most recently completed fiscal year, except that:
1.
Once the member has at least sixty (60) months of service in the system it shall mean interest at two and one-half percent (2.5%) per annum for purposes of crediting interest to employee contributions in the foundational benefit component or any other contributions made by the employee to the foundational benefit component that are refundable to the employee upon termination of employment;
and 2.
The board shall have the authority to adjust the regular interest rate for individuals who become members on or after January 1, 2022, in Page 15 of 23 SB000410.100 - 1563 - XXXX 2/14/2024 4:12 PM GA UNOFFICIAL COPY 24 RS SB 4/GA accordance with KRS 161.633 and 161.634;
(14) "Accumulated contributions" means the contributions of a member to the teachers' savings fund, including picked-up member contributions as described in KRS 161.540(2), plus accrued regular interest;
(15) "Annuitant" means a person who receives a retirement allowance or a disability allowance;
(16) "Local retirement system" means any teacher retirement or annuity system created in any public school district in Kentucky in accordance with the laws of Kentucky;
(17) "Fiscal year" means the twelve (12) month period from July 1 to June 30.
The retirement plan year is concurrent with this fiscal year.
A contract for a member employed by a local board of education may not exceed two hundred sixty-one (261) days in the fiscal year;
(18) "Public schools" means the schools and other institutions mentioned in subsection (4) of this section;
(19) "Dependent" as used in KRS 161.520 and 161.525 means a person who was receiving, at the time of death of the member, at least one-half (1/2) of the support from the member for maintenance, including board, lodging, medical care, and related costs;
(20) "Active contributing member" means a member currently making contributions to the Teachers' Retirement System, who made contributions in the next preceding fiscal year, for whom picked-up member contributions are currently being made, or for whom these contributions were made in the next preceding fiscal year;
(21) "Full-time" means employment in a position that requires services on a continuing basis equal to at least seven-tenths (7/10) of normal full-time service on a fiscal year basis;
(22) "Full actuarial cost," when used to determine the payment that a member must pay for service credit means the actuarial value of all costs associated with the Page 16 of 23 SB000410.100 - 1563 - XXXX 2/14/2024 4:12 PM GA UNOFFICIAL COPY 24 RS SB 4/GA enhancement of a member's benefits or eligibility for benefit enhancements, including health insurance supplement payments made by the retirement system.
The actuary for the retirement system shall determine the full actuarial value costs and actuarial cost factor tables as provided in KRS 161.400;
(23) "Last annual compensation" means the annual compensation, as defined by subsection (10) of this section and as limited by subsection (9) of this section, earned by the member during the most recent period of contributing service, either consecutive or nonconsecutive, that is sufficient to provide the member with one (1) full year of service credit in the Kentucky Teachers' Retirement System, and which compensation is used in calculating the member's initial retirement allowance, excluding bonuses, retirement incentives, payments for accumulated sick leave, annual, personal, and compensatory leave, and any other lump-sum payment.
For an individual who becomes a member on or after July 1, 2008, payments for annual or compensatory leave shall not be included in determining the member's last annual compensation;
(24) "Participant" means a member, as defined by subsection (4) of this section, or an annuitant, as defined by subsection (15) of this section;
(25) "Qualified domestic relations order" means any judgment, decree, or order, including approval of a property settlement agreement, that:
(a) Is issued by a court or administrative agency;
and (b) Relates to the provision of child support, alimony payments, or marital property rights to an alternate payee;
(26) "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;
(27) "University member" means an individual who becomes a member through employment with an employer specified in subsection (4)(b) and (n) of this section;
Page 17 of 23 SB000410.100 - 1563 - XXXX 2/14/2024 4:12 PM GA UNOFFICIAL COPY 24 RS SB 4/GA (28) "Nonuniversity member" means an individual who becomes a member through employment with an employer specified under subsection (4) of this section, except for those members employed by an employer specified in subsection (4)(b) and (n) of this section;
(29) "Accumulated employer contribution" means the employer contribution deposited to a member's account through the supplemental benefit component and regular interest credited on such amounts as provided by KRS 161.635 for nonuniversity members and KRS 161.636 for university members;
(30) "Accumulated account balance" means:
(a) For members who began participating in the system prior to January 1, 2022, the member's accumulated contributions;
or (b) For members who began participating in the system on or after January 1, 2022, the combined sum of the member's accumulated contributions and the member's accumulated employer contributions;
(31) "Foundational benefit component" means the benefits provided by KRS 161.220 to 161.716 to individuals who become members on or after January 1, 2022, except for the supplemental benefit component and retiree health benefits set forth in KRS 161.675;
and (32) "Supplemental benefit component" means:
(a) The benefit established pursuant to KRS 161.635 for individuals who become nonuniversity members on or after January 1, 2022;
or (b) The benefit established pursuant to KRS 161.636 for individuals who become university members on or after January 1, 2022.
Section 3.
KRS 161.370 is amended to read as follows:
(1) The State Treasurer, the Auditor of Public Accounts, and the Attorney General shall be treasurer, auditor, and legal adviser, respectively, of the board of trustees, and shall be liable upon their official bonds for the faithful performance of such duties.
Page 18 of 23 SB000410.100 - 1563 - XXXX 2/14/2024 4:12 PM GA UNOFFICIAL COPY 24 RS SB 4/GA They shall serve without compensation except as provided by subsection (2)(b) of this section.
When the board of trustees deems it for the best interests of the retirement system, it may employ attorneys and pay reasonable fees for the services rendered.
(2) (a) The board shall annually procure an audit of the Teachers' Retirement System.
The audit shall be conducted in accordance with generally accepted auditing standards.
Except as provided by paragraph (b) of this subsection, the board may select an independent certified public accountant to perform the audit and pay reasonable fees for the services rendered.
If the audit is performed by an independent certified public accountant, the Auditor of Public Accounts shall not be required to perform an audit pursuant to KRS 43.050(2)(a), but may perform an audit at his discretion.
(b) At least once every five (5) years, the Auditor of Public Accounts shall perform the audit described by this subsection, and the system shall reimburse the Auditor of Public Accounts for all costs of the audit.
The Auditor of Public Accounts shall determine which fiscal year during the five (5) year period the audit prescribed by this paragraph will be completed.
The audit performed by the Auditor of Public Accounts pursuant to this paragraph shall include a review of the sick leave program established by Section 1 of this Act to ensure payments for unused sick days as it relates to the impact on retirement benefits are operating within the limitations of subsection (10) of Section 1 of this Act and that school boards are appropriately reporting unused sick leave days in accordance with subsection (10)(e) of Section 1 of this Act.
(3) The board shall make copies of the audit required by this section available for examination by any active contributing member or annuitant in the office of the executive secretary of the Teachers' Retirement System and in such other places as Page 19 of 23 SB000410.100 - 1563 - XXXX 2/14/2024 4:12 PM GA UNOFFICIAL COPY 24 RS SB 4/GA may be necessary to make the audit available to all active contributing members and annuitants.
A copy of the annual audit shall be sent to the Legislative Research Commission no later than ten (10) days after receipt by the board.
At least once in each two (2) year period, the board shall cause an Page 9 of 14 XXXX 1/11/2024 1:12 PM Jacketed UNOFFICIAL COPY 24 RS BR 1563 actuarial investigation to be made of all of the economic experience under the retirement system, including but not limited to the inflation rate, investment return, and payroll growth assumptions, relative to the economic assumptions and funding methods previously adopted by the board.
At least once in each two (2) year period, the board shall cause an actuarial investigation to be made of all of the economic experience under the retirement system, including but not limited to the inflation rate, investment return, and payroll growth assumptions, relative to the economic assumptions and funding methods previously adopted by the board.
(c) At least annually the actuary shall make an actuarial valuation of the retirement system.
(c) At least annually the actuary shall make an actuarial valuation of the Page 20 of 23 SB000410.100 - 1563 - XXXX 2/14/2024 4:12 PM GA UNOFFICIAL COPY 24 RS SB 4/GA retirement system.
Page 10 of 14 XXXX 1/11/2024 1:12 PM Jacketed UNOFFICIAL COPY 24 RS BR 1563 5.
5.
(d) On the basis of the results of the valuations, the board of trustees shall make necessary changes in the retirement system within the provisions of law and shall establish the contributions payable by employers and the state specified in KRS 161.550, including changes prescribed by KRS 161.633, 161.634, 161.635, and 161.636, as applicable.
(d) On the basis of the results of the valuations, the board of trustees shall make necessary changes in the retirement system within the provisions of law and shall establish the contributions payable by employers and the state specified Page 21 of 23 SB000410.100 - 1563 - XXXX 2/14/2024 4:12 PM GA UNOFFICIAL COPY 24 RS SB 4/GA in KRS 161.550, including changes prescribed by KRS 161.633, 161.634, 161.635, and 161.636, as applicable.
Page 11 of 14 XXXX 1/11/2024 1:12 PM Jacketed UNOFFICIAL COPY 24 RS BR 1563 (2) Actuarial factors and actuarial cost factor tables in use by the retirement system for all purposes shall be determined by the actuary of the retirement system and approved by the board of trustees by resolution and implemented without the necessity of an administrative regulation.
(2) Actuarial factors and actuarial cost factor tables in use by the retirement system for all purposes shall be determined by the actuary of the retirement system and approved by the board of trustees by resolution and implemented without the necessity of an administrative regulation.
KRS 161.623 is amended to read as follows:
(1) Effective July 1, 1982, and thereafter, a district board of education or other employer of members of the Teachers' Retirement System may compensate, at the time of retirement for service, an active contributing member for unused sick-leave days in accordance with this section.
(2) Upon the member's application for service retirement, the employer shall certify the retiring member's unused accumulated sick-leave balance to the board of trustees of the [Kentucky ]Teachers' Retirement System.
The member's sick-leave balance, expressed in days, shall be divided by one hundred eighty-five (185) days to determine the amount of service credit that may be considered for addition to the member's retirement account for the purpose of determining the retirement allowance under KRS 161.620.
Notwithstanding any statute to the contrary, sick- leave credit that is accredited under this section or by one (1) of the other state- administered retirement systems shall not be used for the purpose of determining whether the member is eligible to receive a retirement allowance from the Page 12 of 14 XXXX 1/11/2024 1:12 PM Jacketed UNOFFICIAL COPY 24 RS BR 1563 [Kentucky ]Teachers' Retirement System.
(3) The board shall compute the cost to the retirement system of the sick-leave credit for each retiring member and shall bill the last employer of the retiring member, which in the case of school board employees shall be the local school district for such cost.
The employer shall pay the cost of such service credit to the retirement system within fifteen (15) days after receiving notification of the cost from the board.
(4) Retiring members who receive service credit under this section shall not be eligible to receive compensation for accrued sick leave under KRS 161.155(10) or any other statutory provision, except that any sick leave awarded under subsection (2) of Section 1 of this Act on or after July 1, 2024, that is in excess of the ten (10) day limitation prescribed by subsection (10)(e)2.
of Section 1 of this Act may be converted to additional service credit under this section if the school district elects to do so and the school district pays the cost required by this section.
(5) Employer participation is optional and the employer may opt to purchase less service credit than the member is eligible to receive provided the same percentage of reduction is made applicable to all retiring members of the employer during a school fiscal year.
(6) The board of trustees shall formulate and adopt necessary rules and regulations for the administration of the foregoing provisions.
(7) Payments to the retirement system for service credit obtained under this section or for compensation credit obtained under KRS 161.155(10) shall be based on the full actuarial cost as defined in KRS 161.220(22).
(8) For an individual who becomes a member on or after July 1, 2008, the maximum amount of unused accumulated sick leave that may be considered for addition to the member's retirement account for purposes of determining the retirement allowance under KRS 161.620 shall not exceed three hundred (300) days.
Page 13 of 14 XXXX 1/11/2024 1:12 PM Jacketed UNOFFICIAL COPY 24 RS BR 1563 Section 6.
(1) Each school district, institution, and agency employing annuitants of the retirement system shall have on file at the retirement system's office an annual summary report of the days employed and the compensation paid to each annuitant, the sick leave reporting requirements established by Section 1 of this Act, and other data as required by administrative regulation of the board of trustees no later than August 1, following the completion of each fiscal year.
(1) Each school district, institution, and agency employing annuitants of the retirement system shall have on file at the retirement system's office an annual summary report of the days employed and the compensation paid to each annuitant, the sick leave reporting requirements established by Section 1 of this Act, and other data as Page 22 of 23 SB000410.100 - 1563 - XXXX 2/14/2024 4:12 PM GA UNOFFICIAL COPY 24 RS SB 4/GA required by administrative regulation of the board of trustees no later than August 1, following the completion of each fiscal year.
Section 7.
Section 6.
The Auditor or Public Accounts shall perform a special audit of the sick leave program established by Section 1 of this Act as it relates to the Teachers' Retirement System and the sick leave reported by local school districts to the Teachers' Retirement System as of June 30, 2024, to ensure that only the sick leave that is eligible for payment under Section 1 of this Act and inclusion in a retiring employee's final average salary as defined in KRS 161.220 is being reported correctly according to Sections 1 to 6 of this Act.
The audit shall be paid by the Teachers' Retirement System as part of its normal administrative expenses.
Section 8.
Page 14 of 14 XXXX 1/11/2024 1:12 PM Jacketed
Page 23 of 23 SB000410.100 - 1563 - XXXX 2/14/2024 4:12 PM GA
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Action History

  1. 2nd reading, to Rules

  2. floor amendment (1) filed to Committee Substitute , floor amendment (2) filed to bill

  3. reported favorably, 1st reading, to Calendar with Committee Substitute (1)

  4. to State Government (H)

  5. to Committee on Committees (H)

  6. received in House

  7. 3rd reading, passed 24-12 with Committee Substitute (1)

  8. posted for passage in the Regular Orders of the Day for Wednesday, February 14, 2024

  9. 2nd reading, to Rules

  10. reported favorably, 1st reading, to Calendar with Committee Substitute (1)

  11. to State & Local Government (S)

  12. to Committee on Committees (S)

  13. introduced in Senate

Sponsors

Sponsorship breakdown

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2 sponsors · 0 co-sponsors · 136 not signed on · 10 voted No

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 SB 4 W/ scs1

Passed 24 Yea · 12 Nay · 2 Other
Party YeaNayPresentNot Voting
Republican 20602
Unaffiliated 4300
Democrat 0300
Total 241202
% of votes cast 63%32%0%5%
How each member voted (38)
Member Party Vote
Schickel — Yea
Westerfield — Yea
Southworth — Yea
Thayer — Yea
Turner — Nay
Yates — Nay
Harper Angel — Nay
Cassie Chambers Armstrong Democrat Nay
Gerald A. Neal Democrat Nay
Karen Berg Democrat Nay
Amanda Mays Bledsoe Republican Not Voting
Brandon J. Storm Republican Not Voting
Christian McDaniel Republican Yea
Danny Carroll Republican Yea
David P. Givens Republican Yea
Donald Douglas Republican Yea
Gary Boswell Republican Yea
Greg Elkins Republican Yea
Jared Carpenter Republican Nay
Jason Howell Republican Yea
Jason Nemes Republican Yea
Jimmy Higdon Republican Yea
Julie Raque Adams Republican Yea
Lindsey Tichenor Republican Yea
Matthew Deneen Republican Nay
Max Wise Republican Yea
Michael Meredith Republican Nay
Nick Wilson Republican Yea
Phillip Wheeler Republican Yea
Rick Girdler Republican Yea
Robby Mills Republican Yea
Robert Stivers Republican Yea
Robin L. Webb Republican Nay
Shelley Funke Frommeyer Republican Yea
Stephen West Republican Yea
Tom Smith Republican Nay
Wade Williams Republican Yea
Walker Thomas Republican Nay

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Subjects

labor education
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 4 do?
Amend KRS 161.155 to specify that sick leave payments made to certified school employees who began participating in the Teachers' Retirement System (TRS) prior to January 1, 2022, and who retire from TRS on or after July 1, 2024, shall be limited to the sick leave accrued by the employee as of June 30, 2024, plus no more than 10 additional sick leave days accrued each fiscal year thereafter; provide that the 10 additional days eligible for payment shall not include personal leave, emergency leave, or other forms of non-sick leave balances; require each school district to annually report sick leave balances to TRS beginning with the fiscal year ending June 30, 2024 and specify contents of the report; amend KRS 161.152 and 161.154 to further clarify that emergency leave and personal leave shall not be converted to sick leave under KRS 161.155; amend KRS 161.400 to require TRS to annually report in the annual actuarial valuation the total liabilities and costs of the sick leave program created by KRS 161.155; amend KRS 161.623 to allow school districts to convert excess sick leave accrued annually in excess of 10 days specified by the bill to service credit in TRS the school district pays the cost of conversion; amend KRS 161.643 to include new sick leave reporting requirements in the annual statutory reporting requirements for TRS employers; provide that the Auditor of Public Accounts shall perform a special audit of the sick leave program to ensure sick leave balances are being reported correctly to TRS and specify that TRS shall pay the costs of the audit; EMERGENCY.
Who sponsors SB 4?
SB 4 is sponsored by Jimmy Higdon (Republican) and D. Thayer.
What is the current status of SB 4?
This bill died with 2024 Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 4?
Track SB 4 free on One Click Politics — get push/email alerts when it moves.

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