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How Senate Bill 10 changes monthly KPPA health-insurance support for eligible CERS retirees
Summary
KPPA said eligible non-Medicare CERS retirees who meet career-service thresholds will receive increased monthly KPPA payments: $40 per year of nonhazardous service and $50 per year of hazardous service, with annual COLAs beginning July 1, 2026.
Kentucky Public Pensions Authority staff explained that Senate Bill 10 sets specific dollar-per-year contribution amounts for qualifying CERS retirees who are on non‑Medicare plans and who meet a career-service threshold. The presenter said, "CERS Nonhazardous members who reach the career threshold in service before retirement will have the dollar contribution amount of $40.00 per month for each year of service," and that hazardous members meeting the threshold will have "$50.00 per month for each year of Hazardous service."
The presenter defined the career thresholds as 27 years (324 months) for nonhazardous service; hazardous thresholds are 20 years (240 months) for Tier 1 and 25 years (300 months) for Tiers 2 and 3. KPPA gave numeric examples: a nonhazardous retiree with 324 months (27 years) would receive $1,080 monthly (27 x $40); a Tier 1 hazardous retiree with 252 months (21 years) would receive $1,050 monthly (21 x $50). The presentation noted those monthly amounts "will receive annual COLA’s, each July beginning 7/1/2026."
KPPA also said that once a retiree becomes Medicare-eligible (typically at age 65), the monthly contribution will revert to the non-enhanced amount and COLA-adjusted original amounts will apply.
