KPPA approves $50.1 million biennium baseline budget, $75 million capital plan and ABR for PAS modernization

The Kentucky Public Pensions Authority approved its FY 2026–2028 biennium budget at the board's Sept. 25 meeting, endorsing a Baseline Budget Submission of $50,115,600, a $75 million capital plan spread across multiple fiscal years, and Additional Budget Requests (ABRs) to support Pension Administration System (PAS) modernization.

Mike Lamb, representing the KPPA budget workgroup, told the board the administrative budget was revised to $50,115,600 after a Personnel Cabinet adjustment of $145,900. Of the total administrative budget, $38,459,400 is allocated for personnel expenses including salaries, employer taxes and employee benefits. The capital planning submission totals $75 million: $15 million for an initial planning phase (FY 2028), $50 million for implementation (FY 2029–2030), and $10 million for closure (FY 2031–2032). The ABR requests $750,000 for FY 2027 and $1.5 million for FY 2028 to support ancillary personnel costs tied to PAS modernization and other IT initiatives.

Lamb stressed the proposed expenditures are funded through restricted trust funds rather than the state's general fund and noted KPPA will present the budget to the Office of State Budget Director and the Legislative Research Commission; the legislature will consider competing proposals during the general session with final authority over appropriations.

Board members commended the staff for planning; William O’Mara moved to approve the biennium budget as presented, Prewitt Lane seconded, and the motion passed unanimously.