KLC 2020 Legislative Update
The 2020 Legislative Update provides a review of measures passed in the 2020 Regular Session of the Kentucky General Assembly that impact cities.
The 2020 Legislative Update provides a review of measures passed in the 2020 Regular Session of the Kentucky General Assembly that impact cities.
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9) RETIREMENT & PENSIONS<br />
Senate Bill 239<br />
LOCAL GOVERNMENT PENSION ISSUES<br />
Sponsor: Senator Mike Wilson (R-Bowling Green)<br />
SB 239 amends KRS 90.400, 90.410, 95.290, 95.530, 95.620, 95.622, 95.767 and 95.869 relating to<br />
cities with legacy pension plans for member police officers and firefighters prior to participation by cities in<br />
the County Employees Retirement System effective August 1, 1988. Due to reduced membership in the cityadministered<br />
plans for members who opted to remain in the legacy plans after August 1, 1988, SB 239<br />
provides cities a way to transition out of legacy plans. If there are fewer than 12 active and retired members<br />
or beneficiaries of a pension fund, the governing body may elect to offer to individuals entitled to benefits<br />
from the fund a onetime irrevocable option to convert monthly pension benefits from the fund to monthly<br />
annuity benefits from an insurance company for the same amount. An insurance company accepting a<br />
benefit transfer shall honor any features and options available under the existing plan. If the governing<br />
body of the fund elects to offer the option to convert monthly pension benefits to monthly annuity<br />
benefits, it shall provide to individuals entitled to benefits from the fund sufficiently complete and<br />
appropriate disclosures to assist in making an informed decision.<br />
KRS 95.620 is further amended to provide, if there are fewer than six active and retired members of<br />
the pension fund from either the police department or fire department, the board of trustees of the<br />
pension fund shall be composed of the mayor, city treasurer or chief financial officer, one retired member<br />
of the department with six or more active or retired members of the fund who shall be elected by ballot by<br />
the retired members of the department, and one employee appointed by the mayor from the department<br />
with fewer than six active and retired members of the fund who shall serve for one year and until their<br />
respective successors are appointed and qualified.<br />
SB 239 additionally amends KRS 61.637 to provide that a mayor or member of a city legislative<br />
body who is at least 62 years of age and eligible to retire from the County Employees Retirement System<br />
shall not be required to resign from his or her position as a mayor or member of a city legislative body in<br />
order to begin drawing benefits from the system. If a mayor or member of a city legislative body who is at<br />
least 62 years of age retires from the systems administered by the Kentucky Retirement Systems but<br />
remains in office after his or her effective retirement date, the mayor or member of the city legislative body<br />
shall not accrue any further service credit or benefits in the Kentucky Retirement Systems for any<br />
employment occurring on or after the effective retirement date.<br />
Senator Mike Wilson (R-Bowling Green) and <strong>KLC</strong><br />
Director of Governmental Affairs Bryanna Carroll<br />
testify before the Senate State and Local<br />
Government Committee on March 11.<br />
www.<strong>KLC</strong>.org<br />
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