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Kentucky Public Pensions Authority explains Senate Bill 10 changes to CERS health insurance contributions
Summary
KPPA staff summarized Senate Bill 10 (2025), saying it raises monthly KPPA payments for eligible CERS retirees who meet career thresholds and requires new employee pre-funding contributions beginning July 1, 2026.
Kentucky Public Pensions Authority (KPPA) staff outlined how Senate Bill 10, enacted in the 2025 legislative session, changes health insurance funding for members of the County Employees Retirement System (CERS) on dollar-contribution plans. The presenter said the law increases the dollar amount KPPA pays for retirees who meet a career service threshold and that some employees will begin making health-insurance contributions to pre-fund the insurance funds.
The presentation noted multiple effective dates: the increased KPPA payment for qualifying retirees becomes effective January 1, 2026, while the employee health-insurance contribution and some changes in compensation-based withholding take effect July 1, 2026. The presenter said the new retiree payment amount is “subject to an annual Cost of Living Adjustment,” and gave examples showing how the monthly amounts will be calculated and adjusted.
KPPA emphasized the changes affect only CERS members in the dollar contribution plan who are not eligible for Medicare and do not affect KERS or SPRS employees or members on percentage-based insurance groups. Members with questions were directed to contact KPPA at 1-800-928-4646 for individual guidance.
