SB 193/AA (BR 1124) - R. Palmer II
AN ACT relating to legislative retirement benefits.
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, 2013; amend KRS 6.515 to increase the cost of purchasing active duty military service to the full actuarial cost in the Legislators' Retirement Plan, to prohibit service purchases made on or after July 1, 2013, from being used to vest for pension and retiree health benefits in the Legislators' Retirement Plan, and to require service purchased on or after July 1, 2013, in the Legislators' Retirement Plan to assume the earliest retirement date and cost-of-living adjustments in determining the appropriate actuarial cost; 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, 2013; 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 one-half the amount contributed by the employee subject to a maximum employer contribution of 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 six years; provide that the benefits under 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 61.510, governing the Kentucky Retirement Systems, to clarify that a legislator who begins his or her first term of office on or after the effective date of the Act shall not participate in these plans as a result of service in the General Assembly; amend KRS 61.680 to conform; EFFECTIVE JULY 1, 2013.
Feb 15-introduced in Senate
Feb 19-to State & Local Government (S)