HB 54/AA (BR 86) - B. Montell, C. Embry Jr., B. Housman, T. Moore
AN ACT relating to retirement.
Amend KRS 6.505 to close the Legislators' Retirement Plan to legislators who have not previously participated in the plan and who begin their first term of office on or after July 1, 2011; create new sections of KRS Chapter 6 to establish the Legislators' Defined Contribution Plan for legislators who begin their first term of office on or after July 1, 2011; provide that the plan shall be administered by the Kentucky Deferred Compensation Authority; allow the authority to utilize plans already established or to establish new plans to administer the Legislators' Defined Contribution Plan; provide an employer match of up to 5 percent of the legislator's wages; provide that a legislator participating in the plan shall be vested for employer contributions on a sliding scale that fully vests the legislator for the employer contributions at five years; provide that the benefits provided by the Legislators' Defined Contribution Plan shall not constitute an inviolable contract of the Commonwealth; amend KRS 18A.245 to establish responsibilities of the board of the Kentucky Deferred Compensation Authority to administer the Legislators' Defined Contribution Plan; amend KRS 61.680 and 161.607, governing the Kentucky Retirement Systems and the Kentucky Teachers' Retirement System, to clarify that a legislator who begin his or her first term of office on or after July 1, 2011, shall not participate in these plans as a result of service in the General Assembly; provide that the service earned in the Legislators' Defined Contribution Plan may be used for purposes of determining eligibility for retirement in the state-administered retirement systems, but not the amount of benefits; require the board of the Legislators' Defined Contribution Plan to provide an update on the development of the plan, including any state or federal law issues that need to be resolved, to the Interim Joint Committee on State Government by October 31, 2010.
(Prefiled by the sponsor(s).)
Nov 4-To: Interim Joint Committee on State Government
Jan 5-introduced in House; to State Government (H)