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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

Actuarial AnalysisLocal MandatePolice, StatePublic Officers And EmployeesRetirement And PensionsRetroactive LegislationState Employees

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

Public workers face pension-spike limits

If you retire on or after January 1, 2018, the system reviews your last five fiscal years of pay. Any year your pensionable pay rose more than 10% over the prior year, the extra above 10% is left out. Only pay earned on or after July 1, 2017 can be reduced, and cuts under $25 a month do not apply. Raises from bona fide promotions, some overtime (like grant-funded or emergency), unpaid-leave situations, and certain lump-sum payouts are exempt; hybrid cash balance members are not subject to these rules. If an amount is excluded, you get back your own contributions and interest tied to that amount.

Class-wide raises count toward pensions

Class-wide raises that your employer approved or a union contract required now count as bona fide promotions. These raises are included in pension pay and are not cut by the 10% rule. This change applies to members who retired on or after July 1, 2022. The pension authority reviews those accounts and pays any benefits you should have received.

Public employers pay for past spikes

For employees who retired from January 1, 2014 through June 30, 2017, the last public employer must pay added actuarial costs from pay jumps over 10% that were not bona fide promotions. Employers can pay the bill over one year without interest. Before a hire or job change, an employer can get a binding ruling on whether it is a bona fide promotion, and may appeal later decisions. Starting with the fiscal year that began July 1, 2017, the systems added reporting fields and training to flag exemptions. The pension authority can write rules, and all systems must help carry them out.

Sponsors & Cosponsors

Sponsor

  • John Blanton

    Republican • House

Cosponsors

  • Chris Fugate

    Republican • House

  • Jim Gooch Jr.

    Republican • House

  • Michael Meredith

    Republican • House

  • Jason Nemes

    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. J. Blanton

    4/17/2026

  2. Sponsor

    4/17/2026

  3. signed by Governor (Acts Ch. 189)

    4/17/2026

  4. delivered to Governor

    4/15/2026

  5. enrolled, signed by President of the Senate

    4/15/2026

  6. enrolled, signed by Speaker of the House

    4/15/2026

  7. received in House

    4/15/2026House

  8. passed 36-0

    4/15/2026

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

    4/15/2026

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

    4/15/2026

  11. to Rules (S)

    3/31/2026Senate

  12. received in Senate

    3/31/2026Senate

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

    3/31/2026Senate

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

    3/27/2026Senate

  15. to Rules (H)

    3/20/2026House

  16. received in House

    3/20/2026House

  17. 3rd reading, passed 37-0 with Committee Substitute (1) and Committee Amendment (1-title)

    3/20/2026

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

    3/19/2026

  19. 2nd reading, to Rules as a consent bill

    3/19/2026

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

    3/18/2026

  21. to State & Local Government (S)

    3/16/2026Senate

  22. to Committee on Committees (S)

    2/26/2026Senate

  23. received in Senate

    2/26/2026Senate

  24. 3rd reading, passed 95-0 with Floor Amendment (1)

    2/25/2026

  25. floor amendment (1) filed

    2/23/2026

Bill Text

  • Current

    2/25/2026

    PDF

  • Introduced

    2/25/2026

    PDF

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