KentuckyHB 6422026 Regular SessionHouseWALLET

AN ACT relating to the Kentucky Teachers' Retirement System.

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 2 benefits, 0 costs, 6 mixed.

Survivor payments for spouses and kids

This law sets clear monthly survivor checks. A spouse named as the primary beneficiary gets $240 per month if total income is $6,600 or less, or $180 per month otherwise. Unmarried minor children get $200 for one child, $340 for two, $400 for three, and $440 for four or more. A dependent adult child with a qualifying mental or physical condition gets $200 per month for life, or until the condition ends or the child marries. If the only eligible survivors are parents 65 or older, pay is $200 per month for one parent or $290 for two; a sole eligible dependent sibling gets $165 per month. Child benefits end at 18, at 19 if a full‑time high school student, or continue to 23 if unmarried and in full‑time postsecondary school. Legally adopted survivor children also qualify, including those born after January 1, 1990 whose member‑parent died before July 15, 2008.

New pension formula for 2022 members

For members who joined on or after January 1, 2022, non‑university service earns 1.7% of final average pay per year, plus 0.04% for each full year of age after 60 up to a 1.9% base at age 65+, and an extra 0.25% per year for 20–29 years of service or 0.50% for 30+ years. University members earn 0.7% per year, plus 0.04% for each year of age after 60 up to a 0.9% base at age 65+, with the same 0.25%/0.50% service add‑ons. The TRS board may adjust the annual retirement increase for this cohort under KRS 161.633/161.634.

Return-to-work pay caps and wait times

Retirees with 30 or more years of service may work and earn up to 75% of their last annual pay; those with less than 30 years have a 65% cap. The board may raise the daily‑rate base each July 1 by CPI‑U, up to 5% a year. A retiree returning to a local district can earn at least $200 per day with no cut to the monthly retirement check. You must wait 1 year to return full‑time to the same employer, and 3 months for full‑time with a different employer or for part‑time work. Part‑time work is capped at 12 teaching hours or 100 days per fiscal year, prorated; breaking these limits or prearranging a return can void retirement and require repayment with interest, and pay over the cap can cut your check dollar‑for‑dollar.

Survivor lump-sum, estate, and payback rules

A surviving spouse named as the primary beneficiary may choose a lump‑sum refund of the member’s account instead of ongoing benefits only if the spouse is the parent or court‑appointed guardian of all eligible children, and any adult children consent in writing when required. For adult dependent children, a lump‑sum in place of their benefits is allowed only if the spouse is primary beneficiary, is the court‑appointed fiduciary for incompetent adult children, and competent adult children consent. If there are no eligible survivors, or total survivor payments are less than the account balance, the estate or named beneficiaries get the remaining money. Anyone who later becomes ineligible must tell TRS and repay benefits; after 60 days, unpaid amounts earn 8% yearly interest, and TRS may place a lien. The TRS Board decides eligibility, can require applications and proof of income, can subpoena records, and must authorize all payments.

Annuity and contributions when you return

If you return to work after retiring, your employer must withhold TRS contributions. You generally pay into a separate post‑retirement account that must vest before it can pay benefits; some refunds are allowed per statute. Members who joined TRS on or after January 1, 2022 and are drawing a lifetime monthly allowance cannot contribute to a second account while reemployed. You may waive your annuity to work full‑time; after at least one contract year, TRS recalculates your benefit, with increases capped at 10% per full year (prorated), and your original discounts may be reduced. You return to the annuity rolls on July 1 after the contract year or the first of the month after you stop work, and you must file a retirement application. You can only use this waive‑and‑return option once every five years if you work 25 days or more, and you cannot change your original retirement option or beneficiary because of reemployment. Life insurance for your estate or named beneficiary continues while you are reemployed.

Critical-shortage rehiring and health coverage

Employers may hire retirees full‑time up to 10% of their active full‑time staff; the TRS board can adjust this cap, and districts can ask to exceed it. Districts can also hire retirees in critical‑shortage jobs without the usual pay limits, up to four people or 10% of staff, whichever is greater; the Department of Education has similar authority and TRS sets its limit. Retirees in these roles must meet separation rules, waive TRS health insurance, and use the employer’s plan; both the retiree and employer must make TRS contributions, and districts must pay actuarially determined liability. If you work for an employer that does not participate in state retirement systems, TRS keeps your TRS health coverage during employment, subject to Medicare rules.

Easy control of adult dependent payment

If you are a retired TRS member with an eligible adult dependent child, you can apply for and manage the $200 monthly payment yourself. No court order is required.

Earlier membership dates and 2026 lock

TRS uses your earliest entry date from Kentucky’s state retirement systems to set your eligibility, and once recorded it does not change. If you start TRS on or after July 1, 2026, later reinstating earlier service in another system does not change your TRS account type.

Sponsors & Cosponsors

Sponsor

James Tipton
Republican • House

Cosponsors

Beverly Chester-Burton
Democrat • House

Roll Call Votes

All Roll Calls

Yes: 133 • No: 1

House vote • 3/31/2026

passed

Yes: 37 • No: 1

House vote • 3/18/2026

3rd reading, passed

Yes: 96 • No: 0

Actions Timeline

signed by Governor (Acts Ch. 34)
4/7/2026
delivered to Governor
4/1/2026
enrolled, signed by President of the Senate
4/1/2026House
enrolled, signed by Speaker of the House
4/1/2026House
passed 37-1
3/31/2026House
received in House
3/31/2026House
committee amendment (1) withdrawn
3/31/2026Senate
committee substitute (1) withdrawn
3/31/2026Senate
3rd reading
3/31/2026Senate
posted for passage in the Consent Orders of the Day for Friday, March 27 2026
3/26/2026Senate
2nd reading, to Rules as a consent bill
3/26/2026Senate
reported favorably, 1st reading, to Consent Calendar with Committee Substitute (1) and Committee Amendment (1-title)
3/25/2026Senate
to State & Local Government (S)
3/24/2026Senate
to Committee on Committees (S)
3/19/2026Senate
received in Senate
3/19/2026Senate
3rd reading, passed 96-0 with Committee Substitute (1)
3/18/2026House
posted for passage in the Regular Orders of the Day for Tuesday, March 17 2026
3/16/2026House
2nd reading, to Rules
3/13/2026House
reported favorably, 1st reading, to Calendar with Committee Substitute (1)
3/12/2026House
to State Government (H)
2/23/2026House
to Committee on Committees (H)
2/13/2026House
introduced in House
2/13/2026House

Bill Text

Current
3/25/2026
PDF
Introduced
2/13/2026
PDF

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