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AN ACT relating to retirement benefit spiking. Create a new section of KRS Chapter 21 to provide that members of the Legislators' Retirement Plan or Judicial Retirement Plan who retire on or after January 1, 2015, shall be limited to a 10% growth in the creditable compensation earned during their last five years of employment if that compensation is used to calculate their retirement benefits; provide that only creditable compensation earned on or after July 1, 2014, shall be subject to the creditable compensation growth limitations; exempt lump-sum payments for compensatory time from the compensation growth limitation; exempt from the compensation growth limitation those years of compensation where in the immediately preceding fiscal year the member had 5 weeks of paid worker's compensation benefits or 5 weeks of unpaid maternity, FMLA, or approved sick leave; exempt bona fide promotions or salary advancements from the compensation growth limitation; define "bona fide promotion or salary advancements" as a professional advancement in substantially the same line of work held by the member in the 4 years immediately prior to the 5-year period or a change in employment position based upon training, education or expertise; provide that a bona fide promotion or salary advancement does not include situations where a legislator or judge takes a position of employment with a different employer participating in any of the state-administered retirement systems; provide that the Judicial Form Retirement System shall refund contributions and interest on contributions, for any reductions in creditable compensation provided by this section; provide that the Judicial Form Retirement System shall determine what constitutes a bona fide promotion or salary advancement and allow the member to appeal a decision of the system to the full board of trustees; amend KRS 61.598 to provide that members of the Kentucky Employees Retirement System, the County Employees Retirement System, and the State Police Retirement System, who retire on or after January 1, 2015, shall be limited to a 10% growth in the creditable compensation earned during their last five years of employment if that compensation is used to calculate their retirement benefits; provide that only creditable compensation earned on or after July 1, 2014, shall be subject to the creditable compensation growth limitations; exempt lump-sum payments for compensatory time from the compensation growth limitation; exempt from the compensation growth limitation those years of compensation where in the immediately preceding fiscal year the member had 5 weeks of paid worker's compensation benefits or 5 weeks of unpaid maternity, FMLA, or approved sick leave; exempt bona fide promotions or salary advancements from the compensation growth limitation; provide that the Kentucky Retirement Systems shall refund contributions and interest on contributions, for any reductions in creditable compensation provided by this section; provide that the Kentucky Retirement Systems shall determine what constitutes a bona fide promotion or salary advancement and allow the member to appeal a decision of the system to the board; remove provisions charging employers for creditable compensation growth greater than 10% during the employee's last five years of employment; amend KRS 6.525, 16.645, 61.645, and 78.545 to conform.

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Sponsor

  • C. McDaniel
  • D. Thayer