PRIA Logo™
KentuckySB 852026 Regular SessionSenateWALLET

AN ACT relating to designating a special needs trust to receive state-administered retirement benefits.

Sponsored By: Robin L. Webb (Republican)

Signed by Governor

Actuarial AnalysisJudges And Court CommissionersPublic Officers And EmployeesRetirement And PensionsState AgenciesTeachers

Your PRIA Score

Score Hidden

Personalized for You

How does this bill affect your finances?

Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.

Free to start

Bill Overview

Analyzed Economic Effects

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

Name special needs trusts and pick payouts

You can name a special needs trust as your beneficiary in the State Police, Kentucky Employees, and County Employees plans. If the beneficiary is a person or a special needs trust, and the member had a written designation on file and met service or age rules at death, the beneficiary may choose a lifetime monthly payment (100% survivorship), a Social Security‑adjusted option, 60‑ or 120‑month payments, or, for some pre‑2014 members, a refund or a one‑time lump sum equal to 60 months. Some optional retirement choices are available only when the beneficiary is a person or a single‑beneficiary special needs trust. When a trust is named, the beneficiary’s age sets the actuarial factors, trustees must report deaths, and any improper payments must be returned; returned amounts are not subject to Medicaid payback. You may also direct your own monthly payments to a trust that gives you full access or is only for your benefit; this is not treated as assigning your benefits.

Judicial plan: trusts and children get benefits

The Judicial Retirement Plan lets you name children under 21, disabled children, or a special needs trust to receive the death benefit; you can split percentages by filing the form. You may also name a trust, including a special needs trust, to receive your accumulated account if you die without a spouse or eligible children; otherwise, it goes to your estate. Members who started on or after January 1, 2014 may elect before retirement to have survivorship benefits paid to a dependent child or a special needs trust by completing the system’s forms. A surviving spouse’s monthly allowance may be paid into a special needs trust for the spouse’s benefit. However, some older survivorship rules in KRS 21.425(1) to (3) do not apply to members who started on or after January 1, 2014.

Teachers’ pensions paid to special needs trusts

Teachers’ Retirement System payments can be made to a special needs trust when the retiree, beneficiary, or survivor is the trust’s sole beneficiary. If you are the beneficiary of a special needs trust, your retirement payments can be sent to the trustee, and payments stop when the beneficiary dies. If a surviving spouse or legal dependent is the sole beneficiary of a special needs trust, required annuity payments go to that trust. Checks may be mailed to the trust instead of only by electronic transfer. Trustees must tell TRS when the retiree or beneficiary dies, and any overpayments to a trust must be repaid to TRS; repaid amounts are not subject to Medicaid payback claims. TRS may issue rules to run these payments.

Sponsors & Cosponsors

Sponsor

  • Robin L. Webb

    Republican • Senate

Cosponsors

  • Danny Carroll

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 126 • No: 0

House vote • 3/27/2026

3rd reading, passed

Yes: 90 • No: 0

Senate vote • 2/18/2026

3rd reading, passed

Yes: 36 • No: 0

Actions Timeline

  1. signed by Governor (Acts Ch. 18)

    4/3/2026

  2. delivered to Governor

    3/27/2026

  3. enrolled, signed by Speaker of the House

    3/27/2026

  4. enrolled, signed by President of the Senate

    3/27/2026

  5. received in Senate

    3/27/2026Senate

  6. 3rd reading, passed 90-0

    3/27/2026

  7. posted for passage in the Regular Orders of the Day for Friday, March 27 2026

    3/26/2026

  8. 2nd reading, to Rules

    3/20/2026

  9. reported favorably, 1st reading, to Calendar

    3/19/2026

  10. to State Government (H)

    3/16/2026House

  11. to Committee on Committees (H)

    2/19/2026House

  12. received in House

    2/19/2026House

  13. 3rd reading, passed 36-0

    2/18/2026

  14. posted for passage in the Regular Orders of the Day for Wednesday, February 18 2026

    2/13/2026

  15. 2nd reading, to Rules

    2/5/2026

  16. reported favorably, 1st reading, to Calendar

    2/4/2026

  17. to State & Local Government (S)

    2/2/2026Senate

  18. to Committee on Committees (S)

    1/13/2026Senate

  19. introduced in Senate

    1/13/2026Senate

Bill Text

  • Current

    2/18/2026

    PDF

  • Introduced

    2/18/2026

    PDF

Related Bills

Back to State Legislation