Committee backs bill to limit pension 'spiking,' makes change retroactive to July 2022
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Summary
The House State Government Committee approved House Bill 220 to clarify pension "spiking" rules under the Kentucky Public Pension Authority and make the correction retroactive to July 1, 2022; a retired KSP captain requested an earlier retroactive date but the committee approved the bill as written, 17-0.
FRANKFORT, Ky. — The House State Government Committee voted to report House Bill 220 favorably after Representative John Blanton told members the measure would correct how pension "spiking" is treated under systems administered by the Kentucky Public Pension Authority.
Blanton, the sponsor and Republican representative for the 92nd District, said the bill would "back up to 07/01/2022" to correct an unintended gap created after a previous bill and a court ruling concerning 2022 across-the-board pay raises.
A retired Kentucky State Police captain, Tristan Truesdale, testified in support and asked the committee to consider making the change retroactive to 2021 so those who retired in 2021 would not face reduced benefits. "I was hit with pension spiking when I retired in 2021," Truesdale said, adding that the adjustment would have "very little impact on the budget versus the impact it would have on my household."
Representative Blanton and other members referenced an actuarial analysis the bill's fiscal note cited: "based on the AA, it's saying it would have a .01% impact to the [nonhazardous] and a .06% to the hazardous" retirement funds, figures Blanton summarized during questions about fiscal impact.
Chair Hale closed discussion and the committee approved House Bill 220 with a favorable recommendation by voice and roll call; the clerk recorded a committee tally of 17 yeas, 0 nays and 0 passes. The bill will move to the full House for consideration.
Next steps: House Bill 220 proceeds to the House floor with a favorable committee recommendation.