SB 10 — AN ACT relating to retiree health provisions of the County Employees Retirement System.

UNOFFICIALCHAPTER COPY37 251 RSCHAPTER 37 ( SB 10/GA10 ) AN ACT relating to retiree health provisions of the County Employees Retirement System.

Any hospital and medical expense policy or certificate, provider-provider-sponsored sponsored integrated health delivery network, self-insured medical plan, health maintenance organization contract, or other health benefit plan;

and (c) "Months of service" shall mean the total months of combined service used to determine benefits under the system, except service added to determine disability benefits or service otherwise prohibited from being used to Page 1 of 18 SB001010.100 - 229 - XXXX 2/21/2025 9:35 AM GA UNOFFICIAL COPY 25 RS SB 10/GA determine retiree health benefits under KRS 78.510 to 78.852 shall not be counted as "months of service." (2) (a) 1.

of this paragraph, system recipients shall be Page 2 of 18 SB001010.100 - 229 - XXXX 2/21/2025 9:35 AM GA UNOFFICIAL COPY 25 RS SB 10/GA included in the same class as current state employees for purposes of determining medical insurance policies and premiums in the Kentucky Employees Health Plan as provided by KRS 18A.225 to 18A.2287.

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The system shall continue to provide the same hospital and medical insurance plan coverage for recipients and qualifying dependents after the age of sixty-five (65) as before the age of sixty-fivesixty- five (65), if:

(c) For recipients of a retirement allowance who are not eligible for the same Page 3 of 18 SB001010.100 - 229 - XXXX 2/21/2025 9:35 AM GA UNOFFICIAL COPY 25 RS SB 10/GA level of hospital and medical benefits as recipients living in Kentucky having the same Medicare hospital and medical insurance eligibility status, the board shall provide a medical insurance reimbursement plan as described in subsection (6) of this section.

Page 4 of 18 SB001010.100 - 229 - XXXX 2/21/2025 9:35 AM GA UNOFFICIAL COPY 25 RS SB 10/GA sec.

No member may elect whether to participate in, or choose the contribution amount to accounts established pursuant to 26CHAPTER 37 3 U.S.C.

No Page 5 of 18 SB001010.100 - 229 - XXXX 2/21/2025 9:35 AM GA UNOFFICIAL COPY 25 RS SB 10/GA member may receive a rebate or refund of contributions.

of this paragraph under a reciprocal Page 6 of 18 SB001010.100 - 229 - XXXX 2/21/2025 9:35 AM GA UNOFFICIAL COPY 25 RS SB 10/GA agreement shall not exceed the amount that would be payable under this section if all the member's service were in the County Employees Retirement System.

One hundred percent (100%) of the monthly premium for single coverage shall be paid for a retired member who had two hundred forty Page 7 of 18 SB001010.100 - 229 - XXXX 2/21/2025 9:35 AM GA UNOFFICIAL COPY 25 RS SB 10/GA (240) months of service or more upon retirement or for a retired member who when he or she was an employee was disabled as a direct result of an act in line of duty as defined in KRS 78.510(48) or as a result of a duty-related injury as defined in KRS 61.621;

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Dies as a direct result of an act in line of duty as defined in KRS 78.510 Page 8 of 18 SB001010.100 - 229 - XXXX 2/21/2025 9:35 AM GA UNOFFICIAL COPY 25 RS SB 10/GA or dies as a result of a duty-related injury as defined in KRS 61.621, the monthly premium shall be paid for his or her spouse so long as the spouse remains eligible for a monthly retirement benefit;

of this subsection shall also pay a percentage of the monthly contribution rate sufficient to fund the premium costs for hospital and medical insurance coverage for the spouse and for each Page 9 of 18 SB001010.100 - 229 - XXXX 2/21/2025 9:35 AM GA UNOFFICIAL COPY 25 RS SB 10/GA dependent child of a recipient.

of this paragraph shall upon retirement be eligible for the following monthly contribution rate to be paid CHAPTER 37 5 on his or her behalf, Page 10 of 18 SB001010.100 - 229 - XXXX 2/21/2025 9:35 AM GA UNOFFICIAL COPY 25 RS SB 10/GA or on behalf of the spouse or dependent of a member with service in a hazardous position, from the funds specified under paragraph (a)2.

For members with service in a hazardous position who meet the career threshold, a monthly insurance contribution towards the Page 11 of 18 SB001010.100 - 229 - XXXX 2/21/2025 9:35 AM GA UNOFFICIAL COPY 25 RS SB 10/GA health plans offered to retirees who are not eligible for Medicare of fifty dollars ($50) for each year of service as a participating employee in a hazardous position and a monthly insurance contribution towards the health plans offered to retirees who are eligible for Medicare of fifteen dollars ($15) for each year of service as a participating employee in a hazardous position.

of this paragraph shall be waived for a member who is disabled as a result of a duty-related injury as defined in KRS 61.621 and is eligible for the benefits provided by KRS 61.621(5)(b), and the Page 12 of 18 SB001010.100 - 229 - XXXX 2/21/2025 9:35 AM GA UNOFFICIAL COPY 25 RS SB 10/GA member shall be entitled to the benefits payable under this subsection as though the member had twenty (20) years of service in a nonhazardous position;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY a.

On January 1 of each year by five dollars ($5) for members who have accrued an additional full year of service as a participating employee beyond the career threshold, subject to the following Page 13 of 18 SB001010.100 - 229 - XXXX 2/21/2025 9:35 AM GA UNOFFICIAL COPY 25 RS SB 10/GA restrictions:

An employee whose membership date is on or after September 1, 2008, who retires and is reemployed in a regular full-time position required to participate in the system or the Kentucky Retirement Systems shall not Page 14 of 18 SB001010.100 - 229 - XXXX 2/21/2025 9:35 AM GA UNOFFICIAL COPY 25 RS SB 10/GA be eligible for health insurance coverage or benefits provided by this section and shall take coverage with his or her employing agency during the period of reemployment in a regular full-time position;

"Career threshold" for a member with service in a nonhazardous position means twenty-seventwenty- seven (27) years of service credited under KRS 16.543(1), 61.543(1), 78.615(1), or another state-state-administered administered retirement system and for a member with service in a hazardous position means the service requirements specified by KRS 78.5514(2)(a)2.

Each state-administered retirement system shall pay annually to the insurance trust fund established under KRS 61.701 the portion of the system's cost of the retiree's monthly contribution for single coverage for hospital and medical insurance plan which shall be equal to the percentage of the member's number of months of service in Page 15 of 18 SB001010.100 - 229 - XXXX 2/21/2025 9:35 AM GA UNOFFICIAL COPY 25 RS SB 10/GA the other state-administered retirement plan divided by his or her total combined service and in conjunction with the reciprocal agreement established between the system and the other state-administered retirement systems.

CHAPTER 37 7 2.

Are eligible for retiree health subsidies as provided by subsection (4)(e) Page 16 of 18 SB001010.100 - 229 - XXXX 2/21/2025 9:35 AM GA UNOFFICIAL COPY 25 RS SB 10/GA of this section, except for those recipients eligible for full premium subsidies under subsection (4)(e)5.

The amendments to the employee contribution provisions specified in subsection (3)(b) of Section 1 of this Act, shall apply to employee contributions Page 17 of 18 SB001010.100 - 229 - XXXX 2/21/2025 9:35 AM GA UNOFFICIAL COPY 25 RS SB 10/GA payable on or after July 1, 2026.

PageSigned 18by ofGovernor 18March SB001010.10019, -2025. 229 - XXXX 2/21/2025 9:35 AM GA

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