HB 262 AN ACT relating to state supported universities and community colleges participating in the Kentucky Employees Retirement System and declaring an emergency

About HB-262

Amend KRS 61.522 to permit a state-supported university or community college ceasing participation in the Kentucky Employees Retirement System (KERS) nonhazardous plan by June 30, 2020, under the provisions of subsection

• (8) of KRS 61.522 (2019 SS HB 1), to make an election to retain participation in the retirement plan for only its existing employees who began participating in the systems administered by the Kentucky Retirement Systems prior to September 1, 2008, (Tier I) and, upon its effective cessation date, cease the participation of its existing employees who began participating on or after September 1, 2008, but prior to January 1, 2014 (Tier II); vary assumed rate of return/discount rate used to determine cessation costs from 3% to 4.5% based upon university/college employers' decisions regarding payment type (lump-sum vs

installments) and based on employee type (Tier I and II) and whether those employees will continue to participate in KERS after June 30, 2020; EMERGENCY.