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KentuckyHB 2202026 Regular SessionHouseWALLET

AN ACT relating to pension spiking in the systems administered by the Kentucky Public Pensions Authority.

Sponsored By: John Blanton (Republican)

Signed by Governor

Police, StateActuarial AnalysisLocal MandatePublic Officers And EmployeesRetirement And PensionsRetroactive LegislationState Employees

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 3 benefits, 2 costs, 1 mixed.

Pensions cap big late-career raises

If you retire on or after January 1, 2018, the system reviews your last five fiscal years of creditable pay. Any year that is 10% or more above the prior year loses the amount over 10% for pension math. Only pay earned on or after July 1, 2017 can be reduced. If the total cut would be under $25 a month, no reduction applies.

Refunds when pension pay is cut

If your creditable pay is reduced by the 10% rule, the system refunds your employee contributions and the interest tied to that excluded pay. Employer contributions from that pay stay in the fund to lower the unfunded liability.

Retro pension fixes for 2022 retirees

If your retirement took effect on or after July 1, 2022, the pension authority reviews your account. It reapplies the broader promotion rule, adjusts your monthly check, and pays any back amount you should have received since your retirement date.

Employers pay for pre-2017 spikes

For people who retired between January 1, 2014 and June 30, 2017, the last participating employer must pay any extra actuarial cost from raises over 10% that were not bona fide promotions. The systems may let the employer pay the bill over one year without interest.

More raises count toward pensions

Some raises still count in full when the 10% rule applies. Protected items include bona fide promotions and class‑wide raises approved or funded by your governing body or a union contract. Also protected are lump‑sum comp time or alternate sick leave at separation; increases after an unpaid‑leave year; grant‑funded overtime or the first 100 hours of mandatory overtime; and emergency overtime. But if an elected official moves to a different participating employer, that move is not treated as a promotion for pension purposes.

Clear promotion rulings and reporting help

Employers can ask the pension authority, before a hire or job change, for a binding decision on whether it is a bona fide promotion. Employers may request a hearing and appeal if they disagree. Starting July 1, 2017, reporting tools let employers flag the listed exceptions, and the systems provide ongoing instructions and training.

Sponsors & Cosponsors

Sponsor

  • John Blanton

    Republican • House

Cosponsors

  • Chris Fugate

    Republican • House

  • George Brown Jr.

    Democrat • House

  • Michael Meredith

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 168 • No: 0

Senate vote • 4/15/2026

passed

Yes: 36 • No: 0

Senate vote • 3/20/2026

3rd reading, passed

Yes: 37 • No: 0

House vote • 2/25/2026

3rd reading, passed

Yes: 95 • No: 0

Actions Timeline

  1. signed by Governor (Acts Ch. 189)

    4/17/2026

  2. delivered to Governor

    4/15/2026

  3. enrolled, signed by President of the Senate

    4/15/2026House

  4. enrolled, signed by Speaker of the House

    4/15/2026House

  5. received in House

    4/15/2026House

  6. passed 36-0

    4/15/2026Senate

  7. Senate receded from Committee Substitute (1) and Committee Amendment (1-title)

    4/15/2026Senate

  8. posted for passage for receding from Senate Committee Substitute (1) and Committee Amendment (1-title)

    4/15/2026Senate

  9. to Rules (S)

    3/31/2026Senate

  10. received in Senate

    3/31/2026Senate

  11. House refused to concur in Senate Committee Substitute (1) and Committee Amendment (1-title)

    3/31/2026Senate

  12. posted for passage for concurrence in Senate Committee Substitute (1) and Committee Amendment (1-title)

    3/27/2026Senate

  13. to Rules (H)

    3/20/2026House

  14. received in House

    3/20/2026House

  15. 3rd reading, passed 37-0 with Committee Substitute (1) and Committee Amendment (1-title)

    3/20/2026Senate

  16. posted for passage in the Consent Orders of the Day for Friday, March 20 2026

    3/19/2026Senate

  17. 2nd reading, to Rules as a consent bill

    3/19/2026Senate

  18. reported favorably, 1st reading, to Consent Calendar with Committee Substitute (1) and Committee Amendment (1-title)

    3/18/2026Senate

  19. to State & Local Government (S)

    3/16/2026Senate

  20. to Committee on Committees (S)

    2/26/2026Senate

  21. received in Senate

    2/26/2026Senate

  22. 3rd reading, passed 95-0 with Floor Amendment (1)

    2/25/2026House

  23. floor amendment (1) filed

    2/23/2026House

  24. posted for passage in the Regular Orders of the Day for Monday, February 23 2026

    2/20/2026House

  25. 2nd reading, to Rules

    2/20/2026House

Bill Text

  • Current

    2/25/2026

    PDF

  • Introduced

    2/25/2026

    PDF

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