[{"_1":2,"_100":-5,"_101":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6343049,"mediaKeyId","2252924-a08ea9e4ec44cfdc56ffa3b58183530d","parentId",2252924,"title","Proposal would standardize and cap state-paid sick-leave payouts for TRS retirees; districts would pay excess","audioSeconds",833,"startMs",1991000,"endMs",2824000,"viewUrl","/Search/View?dp=1&key=2252924-a08ea9e4ec44cfdc56ffa3b58183530d&start=1991&end=2824","thumbnailUrl","https://assets.pipeline.soar.com/2252924-a08ea9e4ec44cfdc56ffa3b58183530d/thumbnail_1991000.jpg","articleUrl","/articles/6343049/Kentucky/Proposal-would-standardize-and-cap-state-paid-sick-leave-payouts-for-TRS-retirees-districts-would-pay-excess","mediaUrl","https://secure.pipeline.soar.com/6343049-3aa5771235a1104d50360a6225b4c3fd/orig.mp4?Expires=1771151510&Signature=Istf~1hTNePyz0RWcWbfhKGNp9xfheMvbjk3pn~A7XfDBqQD51Ck4k14eJKGKdoeVQKAO54H-MNx5F-dHmJxYNAzwZgiLjR0qYog24Q5JEf9yb2EgBVu3bU5u9N1GPYdogF70m~utTzqaipRly8tj4I~8v0pF1tcV~9dxhG84oy3wWLXtwuThJ7KULHHxOlsLuwmVh0~AzISh7k~7TUtI-TqZpHLB84BGFgGwRIXq55Fvck4qBloAPDnDpdhH~JK-1y8jD8Y9iV~nOCxnXpEUq0t2X-RbMpWE18CaKWEAaRbwVaKMQ-e5rm4v50pvYzadwpnBBbnZpW93ky5i7CMOg__&Key-Pair-Id=KUT5TJCACFTXG","author","Public Pension Oversight","date","2025-01-27T00:00:00Z","article","Senator Jimmy Higdon presented draft legislation to standardize how sick and personal leave are counted in final retirement compensation for educators in the Teachers' Retirement System (TRS) and to limit the state’s future liability for those payouts.

Higdon said state law currently requires school districts to provide at least 10 sick days per year to teachers; some districts offer more or convert personal or emergency days into sick leave that counts toward final compensation. The bill would ensure every teacher receives equal treatment by defaulting to 10 sick days and permitting two personal days to roll into the retirement calculation; any additional days a district allows would become the district’s financial responsibility rather than the state’s.

Higdon told members the bill does not take away benefits already accrued. He said the state would continue to pay the TRS actuarial cost of leave accrued as of the bill’s effective cutoff (the sponsor referenced an implementation date and said the state would pay for accrued leave up to that date), while districts would be billed for leave earned after the cap for amounts above the standardized 12 days per year. Higdon also said administrators who participated in TRS before July 1, 2008, could still have up to 60 annual days included in final compensation under the bill’s transitional rules.

Higdon proposed uniform reporting requirements and oversight for payroll processors and third-party payroll providers to ensure consistency and accountability across the state’s 177 local school districts and co-ops. The draft also would require TRS to report sick- and annual-leave costs and payer responsibility in its annual valuation.

Committee members asked how rollover days are valued for final compensation. Senator Wilson confirmed the payout is calculated as 30% of the face value of those days and is paid at the retiree’s salary at retirement rather than the value in the year the days were earned. Higdon said the bill would not change that calculation.

Higdon also said the bill would include up to 30 paid maternity-leave days for the birth of a child; committee members noted the bill language currently says \"maternity leave for the birth of the child\" and that adoption leave could be considered later in the House.

Members asked about the fiscal magnitude of the unfunded liability for sick-leave payouts. Higdon noted the legislature made a large appropriation in 2022 to address accumulated costs; he and members discussed that the ongoing annual unfunded cost is material and needs clearer accounting. One member estimated an annual cost in the neighborhood of $30–$40 million, but Higdon said he would verify and provide exact figures.

No committee vote occurred on the bill during the meeting; Higdon said he would file the bill and return updated draft language and supporting analysis to members.

Ending

The chair closed the discussion and set a tentative next meeting date; the sponsor said he would provide the requested actuarial or fiscal numbers and bill updates.","mediaType","Video","parentTitle","Public Pension Oversight Board 1-27-25","oneSentenceSummary","Senator Jimmy Higdon proposed legislation to standardize which sick and personal leave days are included in Teachers' Retirement System final compensation and to require school districts to pay for any leave they grant above the standardized amount.","taxTitle","Kentucky Public Pensions Authority, Governor's Boards and Commissions, Organizations\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t, Executive, Kentucky","taxId",29564,"location","Kentucky","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6343058,"Bill would raise CERS retiree health subsidy; proponents say it will aid recruitment while triggering employer/employee cost sharing",1270,173000,1443000,"/Search/View?dp=1&key=2252924-a08ea9e4ec44cfdc56ffa3b58183530d&start=173&end=1443","https://assets.pipeline.soar.com/2252924-a08ea9e4ec44cfdc56ffa3b58183530d/thumbnail_173000.jpg","/articles/6343058/Kentucky/Bill-would-raise-CERS-retiree-health-subsidy-proponents-say-it-will-aid-recruitment-while-triggering-employeremployee-cost-sharing","https://secure.pipeline.soar.com/6343058-a1a3a7caa83a084e9c999bcf88d4367d/orig.mp4?Expires=1771151510&Signature=gR7Wg8N72ubdU8eCjiDQiXfKla-mnas~i~ksQgCZGzL84lVjPqJ1D26ZfeLZOY-Ts6YOmxa1rh2m1noZOZQLt5fCxJNBmUGDBOXJeRjpXeiZPMEEUQn1KSL7EjtpWBXT~qm-UKVc5hIpHzKjXglSpFa1Km-ynJYhAuoDzD-ar8oPCaBt4PLBdwgyo6~3yvLJetWptj2ATPy4FdsO62f6fkmBTsvYw1LeFnjsORWmZ2Hqmc~Oo4Z2L9LK0yDRjix4jbCw03BSOyfvs6yLajCMpG1M-J3Yj2db3SfBwnVNAS1Pop~x6eZjnMvlhD1WKKEfgq0Lyrf3zN~Mu9N4PwmBcQ__&Key-Pair-Id=KUT5TJCACFTXG","Senator Robbie Mills introduced draft legislation to increase the fixed-dollar retiree health subsidy for members of the County Employees Retirement System (CERS), proposing higher monthly payments per year of service and contribution triggers tied to each health trust’s funded status.

Mills said the draft would raise the nonhazardous career retiree subsidy from $14.63 per month per year of service to $40 per month per year of service, and increase the hazardous-duty subsidy from $21.94 per month per year of service to $50 per month per year of service. \"The goal is to better align their benefits with the cost of an 65-year-old health plan,\" Mills told the committee.

Mills said the bill includes provisions that would vary employee contribution rates depending on the funded status of each health fund over time. He summarized tentative contribution triggers during his presentation; he also acknowledged that the committee would receive a preliminary actuarial analysis and that some draft language still may be adjusted. Mills said the current funded ratios are about 22.3% for the nonhazardous fund and about 0.5% for the hazardous fund.

Supporters from public safety and local government told the committee the increase would help recruit, retain and rehire employees who currently find the existing subsidy inadequate. Jerry Wagner, retired sheriff and executive director of the Sheriff’s Association, said the change would \"help us to hire and retain, and, also, it would help us to be able to rehire retired employees.\" Jeff Taylor, legislative affairs director for the Kentucky Professional Firefighters, told the committee the subsidy has not kept pace with plan costs and that the proposal would return control of health benefits to employees considering retirement.

JD Cheney, executive director of the Kentucky League of Cities, said municipal employers had negotiated the shared-cost approach and supported the draft while noting measured employer risk. Cheney described a five-year forward-looking measurement intended to stabilize any changes in employee contributions.

Mills and witnesses told members they have a bill draft and a preliminary actuarial analysis; Mills asked that those materials be distributed to co-chairs and the committee when finalized. Mills also discussed how the subsidy interacts with rehired retirees and existing law; committee members sought clearer, written answers on how the subsidy is applied when a retiree returns to work or obtains coverage through a private employer.

Committee members pressed for clarification about the draft’s details and possible tweaks if a fund’s funded status exceeded certain thresholds; Mills said those points were under discussion and that the fiscal impacts were preliminary. He cited preliminary estimates that the change would add roughly $121,000,000 in unfunded liability to the nonhazardous fund over the amortization period and about $101,000,000 to the hazardous fund.

No formal committee vote was recorded on the draft during the meeting; staff and sponsors said actuarial materials and any revised bill language would be provided to members ahead of further committee consideration.

Ending

Senator Mills invited committee members to contact him with questions and thanked witnesses for attending. Committee staff said the actuarial analysis would be shared when ready.","Senator Robbie Mills introduced draft legislation to increase the fixed-dollar retiree health subsidy for CERS members, proposing higher monthly payments per year of service and contribution triggers tied to each health trust’s funded status.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6343054,"Bill would let state employees name special-needs trusts as retirement beneficiaries",492,1467000,1959000,"/Search/View?dp=1&key=2252924-a08ea9e4ec44cfdc56ffa3b58183530d&start=1467&end=1959","https://assets.pipeline.soar.com/2252924-a08ea9e4ec44cfdc56ffa3b58183530d/thumbnail_1467000.jpg","/articles/6343054/Kentucky/Bill-would-let-state-employees-name-special-needs-trusts-as-retirement-beneficiaries","https://secure.pipeline.soar.com/6343054-65fd88c8ca067fce8fc48353cfad2239/orig.mp4?Expires=1771151510&Signature=ho3k5imdogDOhh1pUBdj52~lVfAs6~LnrdRUrT5M~RPGr7OkbCILb-LoTw7OCU07hznTng2uMKJ3bYh8QWfSHREhEHgOPqCnme5fOcnS48PDxpMcUCbuHYmXnTMM4ANkExwWocHnRqlTiE68tlFTo5EXXEZKBYRyZduq4HRvngXaDzrpodGBsRPCvgquK6Puf0TjQeAt8JLNJppvrOkj3a9oZ~CKx~Bn481lZZhOtu2IKNHMcB0EeDBqzKqFn7KbPeklKufGVX9szbJY2LGfSoV6IS4oca7~d80fkS44aEZcGNGER9o6~s1CXa~BnvnTLPLSXloLFnOy8nnfO0v51Q__&Key-Pair-Id=KUT5TJCACFTXG","Senator Robin Webb introduced Senate Bill 58, which would allow state employees to designate a special-needs trust as a beneficiary of their retirement benefits. Webb said the change would help state employees protect the eligibility of special-needs relatives for federal programs such as Supplemental Security Income (SSI) and Medicaid.

\"Several state employees have brought this to my attention through the last few years,\" Webb told the committee. She said the bill references federal law governing special-needs trusts and that the draft is lengthy only because it must address procedures across each retirement system.

Webb said she was awaiting an actuarial analysis; she told members she had been advised that preliminary indications from the pension authority suggested the bill could be revenue neutral. Representatives of the Kentucky Public Pensions Authority (KPPA) were present for committee questions and discussed a technical request to allow electronic transfers to trusts rather than written checks.

Committee members asked whether the trusts would be revocable and how the bill would interact with federal rules. Webb said the bill adopts federal eligibility language and contains notice provisions and repayment mechanisms for overpayments. Auditor Allison Ball recommended that the sponsor consider including language to permit STABLE accounts as an additional option for people who do not have a full special-needs trust, saying that could be easier for some employees.

No committee vote was taken on SB 58 during the meeting; Webb said she would provide the actuarial work to the committee when it is available.

Ending

Webb told members she would follow up with actuarial information and staff memos addressing technical questions raised during the hearing.","Senator Robin Webb introduced Senate Bill 58 to allow state employees to designate a special-needs trust as a beneficiary of retirement benefits, aiming to preserve eligibility for federal benefits such as SSI and Medicaid; KPPA and committee members discussed technical details and actuarial neutrality.","actionData","errors"]

Article not found

Proposal would standardize and cap state-paid sick-leave payouts for TRS retirees; districts would pay excess

Bill would raise CERS retiree health subsidy; proponents say it will aid recruitment while triggering employer/employee cost sharing

Bill would let state employees name special-needs trusts as retirement beneficiaries