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KentuckyHB 6422026 Regular SessionHouseWALLET

AN ACT relating to the Kentucky Teachers' Retirement System.

Sponsored By: James Tipton (Republican)

Signed by Governor

Actuarial AnalysisEducation, Elementary And SecondaryEducation, HigherPublic Officers And EmployeesRetirement And PensionsTeachersUniversities And Colleges

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 1 benefits, 0 costs, 6 mixed.

Monthly survivor payments for TRS families

The law pays set monthly survivor checks to families of TRS members. A surviving spouse gets $180 per month, or $240 per month if the spouse’s yearly income is $6,600 or less. Unmarried dependent 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 disability gets $200 per month. If the only eligible survivors are dependent parents age 65+, one parent gets $200 per month or both get $290. A dependent brother or sister who is the sole survivor can get $165 per month. Legally adopted children qualify, including certain cases dating back to children born after January 1, 1990.

How TRS calculates your pension

For non‑university members: service before July 1, 1983 uses 2.0% per year; service on/after that date uses 2.5%. If you joined from 2002–2008, the rate is 2.0% per year with under 10 years, or 2.5% with 10+ years. If you joined from 2008–2021, rates are tiered: 1.7%, 2.0%, 2.3%, 2.5%, and 3.0% for years beyond 30 if the board allows. If you joined on/after Jan 1, 2022, your base is 1.7% per year, plus 0.04% for each full year over age 60 (up to 1.9% at 65+), and an extra 0.25% per year for 20–29 years or 0.50% for 30+ years. For university members: 2008–2021 tiers are 1.5%, 1.7%, 1.85%, and 2.0%; on/after Jan 1, 2022 the base is 0.7% plus the same age and service add‑ons (capped at 0.9% base at 65+). Your annual pension cannot exceed the larger of your last yearly salary or your final average salary.

Return-to-work limits for TRS retirees

You must separate from service before returning: one year for full‑time work with the same employer, three months for full‑time at a different employer, and three months for part‑time. If you retired with 30+ years, you can earn up to 75% of your last annual pay; with less than 30 years (retired after June 30, 2002), up to 65%. Part‑time teaching is capped at 12 teaching hours or 100 days per fiscal year; going over can void your retirement or cut your checks dollar‑for‑dollar. Employers can hire retirees full‑time up to 10% of their active full‑time staff, with possible board or state education department exceptions. In critical shortage roles, districts can hire retirees beyond normal pay caps, but the district and retiree must meet added rules. These limits apply to jobs that are the same or very similar to your prior job and other covered positions; TRS will prorate days and hours if you work in mixed roles.

Full-time return and pension recalculation rules

If you return to full‑time TRS‑covered work, you must stop your monthly checks and pay retirement contributions again. After at least one full contract year, TRS recalculates your pension, but your new monthly amount cannot rise by more than 10% for each full year you worked during the waiver (prorated for partial years). TRS may raise your last daily pay each July 1 by the CPI‑U, capped at 5% a year, and local‑district retirees can earn at least $200 per day without cutting their retirement. You cannot buy service credit for time after you first retired, and if you first joined TRS on or after January 1, 2022, you cannot build a second TRS account while reemployed. Employers must pay actuarial costs for rehired retirees, and you can request a contribution refund within 90 days of the employer’s annual report posting. These return‑to‑work rules operate under their own statute.

Rules and refunds for survivor benefits

Survivor payments end when a child reaches 18 (or 19 in high school), or at 23 if a full‑time college student, and end if the person marries or is no longer dependent. A surviving spouse who is the primary beneficiary and the parent or legal guardian of all eligible children can choose a lump‑sum refund of the member’s account instead of monthly checks, but any competent child age 18+ must sign a waiver. If no survivor gets benefits or the spouse declines them, TRS pays the member’s account balance to the estate or named beneficiaries. Anyone who keeps payments after losing eligibility must repay them; after 60 days, interest is 8% per year and TRS can place a lien. The TRS board decides eligibility and can require proof and records.

Health coverage while working after retirement

If you return to work for a TRS‑participating employer, you must waive TRS medical insurance while employed and take the employer’s plan. If you work for an employer that does not participate in the state retirement systems, you can keep your TRS health coverage while working. Medicare rules still apply for people on Medicare.

Moving between state retirement systems

TRS uses your earlier entry date from another state retirement system to set your status and locks that date in your TRS record. Beginning July 1, 2026, if you start in TRS and later reinstate earlier service in another system, your TRS account type does not change.

Sponsors & Cosponsors

Sponsor

  • James Tipton

    Republican • House

Cosponsors

  • Beverly Chester-Burton

    Democrat • House

  • Jason Nemes

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 133 • No: 1

Senate vote • 3/31/2026

passed

Yes: 37 • No: 1

House vote • 3/18/2026

3rd reading, passed

Yes: 96 • No: 0

Actions Timeline

  1. Actuarial Analysis to House Committee Substitute 1

    4/7/2026

  2. signed by Governor (Acts Ch. 34)

    4/7/2026

  3. delivered to Governor

    4/1/2026

  4. enrolled, signed by President of the Senate

    4/1/2026

  5. enrolled, signed by Speaker of the House

    4/1/2026

  6. received in House

    3/31/2026House

  7. passed 37-1

    3/31/2026

  8. committee amendment (1) withdrawn

    3/31/2026

  9. committee substitute (1) withdrawn

    3/31/2026

  10. 3rd reading

    3/31/2026

  11. posted for passage in the Consent Orders of the Day for Friday, March 27 2026

    3/26/2026

  12. 2nd reading, to Rules as a consent bill

    3/26/2026

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

    3/25/2026

  14. to State & Local Government (S)

    3/24/2026Senate

  15. to Committee on Committees (S)

    3/19/2026Senate

  16. received in Senate

    3/19/2026Senate

  17. 3rd reading, passed 96-0 with Committee Substitute (1)

    3/18/2026

  18. posted for passage in the Regular Orders of the Day for Tuesday, March 17 2026

    3/16/2026

  19. 2nd reading, to Rules

    3/13/2026

  20. reported favorably, 1st reading, to Calendar with Committee Substitute (1)

    3/12/2026

  21. to State Government (H)

    2/23/2026House

  22. to Committee on Committees (H)

    2/13/2026House

  23. introduced in House

    2/13/2026House

Bill Text

  • Current

    3/25/2026

    PDF

  • Introduced

    2/13/2026

    PDF

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