KentuckySB 102025 Regular SessionSenateWALLET

AN ACT relating to retiree health provisions of the County Employees Retirement System.

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Bill Overview

Analyzed Economic Effects

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

More Health Premium Help for Career Retirees

Beginning January 1, 2026, eligible County Employees Retirement System retirees get higher monthly health contributions, regardless of retirement date. Retirees must meet minimum service requirements and career thresholds: 27 years for nonhazardous service, or separate hazardous-service retirement thresholds. The stated monthly amounts per service year are $40 for nonhazardous service without Medicare and $10 with Medicare; hazardous-service amounts are $50 and $15. Medicare amounts adjust to match the applicable noncareer contribution, including the specified 1.5% increase. Amounts rise 1.5% each July 1, continuing after retirement; the changes apply to service earned on or after July 1, 2003. For specified non-Medicare benefits, an additional $5 increase per full service year beyond the career threshold applies on January 1 only when funding meets both tests: at least 90% in the latest actuarial valuation and projected to remain at least 90% that year.

Retirees Get Broader Health Premium Reimbursements

The County Employees Retirement System reimbursement plan covers recipients eligible for subsidies under subsection (4)(e), regardless of system plan offerings. Recipients eligible for full premium subsidies under subsection (4)(e)5 are excluded from this reimbursement benefit. Eligible recipients get their full applicable subsidy, up to what they paid for hospital and medical insurance. They must show proof of payment. For nonhazardous retirees, reimbursement cannot exceed what they paid for single coverage.

Worker Health Deductions and Refunds Set

The amended County Employees Retirement System payroll contribution rules apply to payments due on or after July 1, 2026. Members who joined on or after July 1, 2003, and are covered by subsection (4)(e) must pay. Employers deduct 1% of creditable pay for nonhazardous work and 2% for hazardous work for retiree health coverage. Members covered by subsection (4)(b) or (d), and those who joined before July 1, 2003, are excluded. Excluded members must receive refunds of past deductions, without interest.

Sponsors & Cosponsors

Sponsor

Robby Mills
Republican • Senate

Cosponsors

Jimmy Higdon
Republican • Senate
Michael J. Nemes
Republican • Senate
Matt Nunn
Republican • Senate
Shelley Funke Frommeyer
Republican • Senate
Scott Madon
Republican • Senate
Steve Rawlings
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 129 • No: 0

House vote • 3/13/2025

3rd reading, passed

Yes: 94 • No: 0

Senate vote • 2/21/2025