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HB252 • 2026

AN ACT relating to in line of duty disability benefits and declaring an emergency.

AN ACT relating to in line of duty disability benefits and declaring an emergency.

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
E. Callaway
Last action
2026-01-15
Official status
01/15/26: to State Government (H)
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

AN ACT relating to in line of duty disability benefits and declaring an emergency.

AN ACT relating to in line of duty disability benefits and declaring an emergency.

What This Bill Does

  • AN ACT relating to in line of duty disability benefits and declaring an emergency.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-01-15 Kentucky Legislative Research Commission

    to State Government (H)

  2. 2026-01-08 Kentucky Legislative Research Commission

    introduced in House to Committee on Committees (H)

Official Summary Text

AN ACT relating to in line of duty disability benefits and declaring an emergency.

Current Bill Text

Read the full stored bill text
UNOFFICIAL COPY 26 RS BR 107
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AN ACT relating to in line of duty disability benefits and declaring an emergency. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 61.702 is amended to read as follows: 3
(1) For purposes of this section: 4
(a) "Hospital and medical insurance plan" may include, at the board's discretion, 5
any one (1) or more of the following: 6
1. Any hospital and me dical expense policy or certificate, provider -7
sponsored integrated health delivery network, self -insured medical plan, 8
health maintenance organization contract, or other health benefit plan; 9
2. Any health savings account as permitted by 26 U.S.C. sec. 223 or health 10
reimbursement arrangement or a similar account as may be permitted by 11
26 U.S.C. sec. 105 or 106. Such arrangement or account, at the board's 12
discretion, may reimburse any medical expen se permissible under 26 13
U.S.C. sec. 213; or 14
3. A medical insurance reimbursement program established by the board 15
through the promulgation of administrative regulation under which 16
members purchase individual health insurance coverage through a health 17
insurance exchange established under 42 U.S.C. sec. 18031 or 18041; 18
(b) "Monthly contribution rate" is the amount determined by the board based 19
upon the requirements of subsection (4)(a) to (d) of this section, except that 20
for members who began participating in the system on or after July 1, 2003, 21
the term shall mean the amount determined in subsection (4)(e) of this 22
section; and 23
(c) "Months of service" means the total months of combined service used to 24
determine benefits under the system, except service added t o determine 25
disability benefits or service otherwise prohibited from being used to 26
determine retiree health benefits under KRS 16.505 to 16.652 or 61.510 to 27
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61.705 shall not be counted as "months of service." For current and former 1
employees of the Council on Postsecondary Education who were employed 2
prior to January 1, 1993, and who earn at least fifteen (15) years of service 3
credit in the Kentucky Employees Retirement System, "months of service" 4
shall also include vested service in another retirement syst em other than the 5
Kentucky Teachers' Retirement System sponsored by the Council on 6
Postsecondary Education. 7
(2) (a) 1. The board of trustees of the system shall arrange by appropriate contract 8
or on a self -insured basis to provide a group hospital and medi cal 9
insurance plan coverage for: 10
a. Present and future recipients of a retirement allowance from the 11
Kentucky Employees Retirement System and the State Police 12
Retirement System; and 13
b. The spouse and each qualified dependent of a recipient who is a 14
former member or the beneficiary, provided the spouse and 15
dependent meet the requirements to participate in the hospital and 16
medical insurance plans established, contracted, or authorized by 17
the system. 18
2. Any recipient who chooses coverage under a hospital and medical 19
insurance plan shall pay, by payroll deduction from the retirement 20
allowance, electronic funds transfer, or by another method, the 21
difference between the premium cost of the hospital and medical 22
insurance plan coverage selected and the monthly cont ribution rate to 23
which he or she would be entitled under this section. 24
(b) 1. For present and future recipients of a retirement allowance from the 25
system who are not eligible for Medicare and for those recipients 26
described in subparagraph 3.b. of this para graph, the board may 27
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authorize these participants to be included in the Kentucky Employees 1
Health Plan as provided by KRS 18A.225 to 18A.2287 and shall provide 2
benefits for recipients in the plan equal to those provided to state 3
employees having the same M edicare hospital and medical insurance 4
eligibility status. Notwithstanding the provisions of any other statute 5
except subparagraph 3.b. of this paragraph, system recipients shall be 6
included in the same class as current state employees for purposes of 7
determining medical insurance policies and premiums in the Kentucky 8
Employees Health Plan as provided by KRS 18A.225 to 18A.2287. 9
2. Regardless of age, if a recipient or the spouse or dependent child of a 10
recipient who elects coverage becomes eligible for Medi care, he or she 11
shall participate in the plans offered by the systems for Medicare 12
eligible recipients. Individuals participating in the Medicare eligible 13
plans may be required to obtain and pay for Medicare Part A and Part B 14
coverage, in order to particip ate in the Medicare eligible plans offered 15
by the system. 16
3. The system shall continue to provide the same hospital and medical 17
insurance plan coverage for recipients and qualifying dependents after 18
the age of sixty-five (65) as before the age of sixty-five (65), if: 19
a. The recipient is not eligible for Medicare coverage; or 20
b. The recipient would otherwise be eligible for Medicare coverage 21
but is subject to the Medicare Secondary Payer Act under 42 22
U.S.C. sec. 1395y(b) and has been reemployed by a particip ating 23
agency which offers the recipient a hospital and medical insurance 24
benefit or by a participating agency which is prevented from 25
offering a hospital and medical benefit to the recipient as a 26
condition of reemployment under KRS 70.293, 95.022, or 27
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164.952. Individuals who are eligible, pursuant to this subdivision, 1
to be included in the Kentucky Employees Health Plan as provided 2
by KRS 18A.225 to 18A.2287 may be rated as a separate class 3
from other eligible employees and retirees for the purpose of 4
determining medical insurance premiums. 5
(c) For recipients of a retirement allowance who are not eligible for the same 6
level of hospital and medical benefits as recipients living in Kentucky having 7
the same Medicare hospital and medical insurance eligibility st atus, the board 8
shall provide a medical insurance reimbursement plan as described in 9
subsection (6) of this section. 10
(d) Notwithstanding anything in KRS Chapter 16 or 61 to the contrary, the board 11
of trustees, in its discretion, may take necessary steps to ensure compliance 12
with 42 U.S.C. sec.[secs.] 300bb-1 et seq. 13
(3) (a) Each employer participating in the Kentucky Employees Retirement System 14
or the State Police Retirement System as provided in KRS 16.505 to 16.652 or 15
61.510 to 61.705 shall contribute to the insurance trust fund established under 16
KRS 61.701 the amount necessary to provide the monthly contribution rate as 17
provided for under this section. Such employer contribution rate shall be 18
developed by appropriate actuarial method as a part of the dete rmination of 19
each respective employer contribution rate determined under KRS 61.565. 20
(b) 1. Each employer described in paragraph (a) of this subsection shall deduct 21
from the creditable compensation of each member whose membership 22
date begins on or after Se ptember 1, 2008, an amount equal to one 23
percent (1%) of the member's creditable compensation. The deducted 24
amounts shall, at the discretion of the board, be credited to accounts 25
established pursuant to 26 U.S.C. sec. 401(h), within the funds 26
established in KRS 16.510 and 61.515, or the insurance trust fund 27
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established under KRS 61.701. Notwithstanding the provisions of this 1
paragraph, a transfer of assets between the accounts established pursuant 2
to 26 U.S.C. sec. 401(h), within the funds established in KRS 16.510 3
and 61.515, and the insurance trust fund established under KRS 61.701 4
shall not be allowed. 5
2. The employer shall file the contributions as provided by subparagraph 1. 6
of this paragraph at the retirement office in accordance with KRS 7
61.675. Any in terest or penalties paid on any delinquent contributions 8
shall be credited to accounts established pursuant to 26 U.S.C. sec. 9
401(h), within the funds established in KRS 16.510 and 61.515, or the 10
insurance trust fund established under KRS 61.701. Notwithst anding 11
any minimum compensation requirements provided by law, the 12
deductions provided by this paragraph shall be made, and the 13
compensation of the member shall be reduced accordingly. 14
3. Each employer shall submit payroll reports, contributions lists, and other 15
data as may be required by administrative regulation promulgated by the 16
board of trustees pursuant to KRS Chapter 13A. 17
4. Every member shall be deemed to consent and agree to the deductions 18
made pursuant to this paragraph, and the payment of salary o r 19
compensation less the deductions shall be a full and complete discharge 20
of all claims for services rendered by the person during the period 21
covered by the payment, except as to any benefits provided by KRS 22
16.505 to 16.652 or 61.510 to 61.705. No member may elect whether to 23
participate in, or choose the contribution amount to accounts established 24
pursuant to 26 U.S.C. sec. 401(h) within the funds established in KRS 25
16.510 and 61.515, or the insurance trust fund established under KRS 26
61.701. The member sha ll have no option to receive the contribution 27
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required by this paragraph directly instead of having the contribution 1
paid to accounts established pursuant to 26 U.S.C. sec. 401(h) within the 2
funds established in KRS 16.510 and 61.515, or the insurance trus t fund 3
established under KRS 61.701. No member may receive a rebate or 4
refund of contributions. If a member establishes a membership date 5
prior to September 1, 2008, pursuant to KRS 61.552(2) or (3), then this 6
paragraph shall not apply to the member and all contributions previously 7
deducted in accordance with this paragraph shall be refunded to the 8
member without interest. The contribution made pursuant to this 9
paragraph shall not act as a reduction or offset to any other contribution 10
required of a member o r recipient under KRS 16.505 to 16.652 or 11
61.510 to 61.705. 12
5. The board of trustees, at its discretion, may direct that the contributions 13
required by this paragraph be accounted for within accounts established 14
pursuant to 26 U.S.C. sec. 401(h) within the funds established in KRS 15
16.510 and 61.515, or the insurance trust fund established under KRS 16
61.701, through the use of separate accounts. 17
(4) (a) The premium required to provide hospital and medical insurance plan 18
coverage under this section shall be pai d wholly or partly from funds 19
contributed by: 20
1. The recipient of a retirement allowance, by payroll deduction from his 21
or her retirement allowance, or by other method; 22
2. The insurance trust fund established under KRS 61.701 or accounts 23
established pursu ant to 26 U.S.C. sec. 401(h) within the funds 24
established in KRS 16.510 and 61.515; 25
3. Another state -administered retirement system, including the County 26
Employees Retirement System, under a reciprocal arrangement, except 27
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that any portion of the premium paid from the funds specified by 1
subparagraph 2. of this paragraph under a reciprocal agr eement shall not 2
exceed the amount that would be payable under this section if all the 3
member's service were in the systems administered by the Kentucky 4
Retirement Systems. If the board provides for cross -referencing of 5
insurance premiums, the employer's c ontribution for the working 6
member or spouse shall be applied toward the premium, and the 7
insurance trust fund established under KRS 61.701 or accounts 8
established pursuant to 26 U.S.C. sec. 401(h) within the funds 9
established in KRS 16.510 and 61.515 shall pay the balance; or 10
4. A combination of the fund sources described by subparagraphs 1. to 3. 11
of this paragraph. 12
Group rates under the hospital and medical insurance plan shall be made 13
available to the spouse, each dependent child, and each disabled chil d, 14
regardless of the disabled child's age, of a recipient who is a former member 15
or the beneficiary, if the premium for the hospital and medical insurance for 16
the spouse, each dependent child, and each disabled child, or beneficiary is 17
paid by payroll dedu ction from the retirement allowance, electronic funds 18
transfer, or by another method. For purposes of this subsection only, a child 19
shall be considered disabled if he or she has been determined to be eligible for 20
federal Social Security disability benefits or meets the dependent disability 21
standard established by the Department of Employee Insurance in the 22
Personnel Cabinet. 23
(b) For a member who began participating in the system prior to July 1, 2003, the 24
monthly contribution rate shall be paid by the system from the funds specified 25
under paragraph (a)2. of this subsection and shall be equal to a percentage of 26
the single premium to cover the retired member as follows: 27
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1. One hundred percent (100%) of the monthly premium for single 1
coverage shall be paid for a retired member who had two hundred forty 2
(240) months of service or more upon retirement or for a retired member 3
who when he or she was an employee became disabled as a direct result 4
of an act in line of duty as defined in KRS 16.505 or as a result of a 5
duty-related injury as defined in KRS 61.621; 6
2. Seventy-five percent (75%) of the monthly premium for single coverage 7
shall be paid for a retired member who had less than two hundred forty 8
(240) months of service but at least one hundred eighty (180) mont hs of 9
service upon retirement, provided such retired member agrees to pay the 10
remaining twenty-five percent (25%) by payroll deduction from his or 11
her retirement allowance, electronic funds transfer, or by another 12
method; 13
3. Fifty percent (50%) of the monthly premium for single coverage shall be 14
paid for a retired member who had less than one hundred eighty (180) 15
months of service but had at least one hundred twenty (120) months of 16
service upon retirement, provided such retired member agrees to pay the 17
remaining fifty percent (50%) by payroll deduction from his or her 18
retirement allowance, electronic funds transfer, or by another method; or 19
4. Twenty-five percent (25%) of the monthly premium for single coverage 20
shall be paid for a retired member who had less than one hundred twenty 21
(120) months of service but had at least forty -eight (48) months of 22
service upon retirement, provided such retired member agrees to pay the 23
remaining seventy-five percent (75%) by payroll deduction from his or 24
her retirement allowa nce, electronic funds transfer, or by another 25
method. 26
(c) Notwithstanding paragraph (b) of this subsection, for a member participating 27
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in the system prior to July 1, 2003, who: 1
1. Dies as a direct result of an act in line of duty as defined in KRS 16.505 2
or dies as a result of a duty -related injury as defined in KRS 61.621, the 3
monthly premium shall be paid for his or her spouse so long as the 4
spouse remains eligible for a monthly retirement benefit; 5
2. Becomes totally and permanently disabled as defined in KRS 16.582 as 6
a direct result of an act in line of duty as defined in KRS 16.505 , 7
receives a satisfactory determination of a hazardous disability that is a 8
direct result of an act in line of duty as defined in KRS 16.505, or 9
becomes disabled as a result o f a duty -related injury as defined in KRS 10
61.621 and is eligible for the benefits provided by KRS 61.621(5)(a), the 11
monthly premium shall be paid for his or her spouse so long as the 12
member and the spouse individually remain eligible for a monthly 13
retirement benefit; and 14
3. Dies as a direct result of an act in line of duty as defined in KRS 16.505, 15
dies as a result of a duty -related injury as defined in KRS 61.621, 16
becomes totally and permanently disabled as defined in KRS 16.582 as a 17
direct result of an ac t in line of duty as defined in KRS 16.505, receives 18
a satisfactory determination of a hazardous disability that is a direct 19
result of an act in line of duty as defined in KRS 16.505, or becomes 20
disabled as a result of a duty -related injury as defined in K RS 61.621 21
and is eligible for the benefits provided by KRS 61.621(5)(a), the 22
monthly premium shall be paid for each dependent child as defined in 23
KRS 16.505, so long as the member remains eligible for a monthly 24
retirement benefit, unless deceased, and each dependent child 25
individually remains eligible under KRS 16.505. 26
(d) 1. For a member who began participating in the system prior to July 1, 27
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2003, who was determined to be in a hazardous position in the Kentucky 1
Employees Retirement System or in a position in the State Police 2
Retirement System, or who is receiving a retirement allowance based on 3
General Assembly service, the funds specified under paragraph (a)2. of 4
this subsection shall also pay a percentage of the monthly contribution 5
rate sufficient to fun d the premium costs for hospital and medical 6
insurance coverage for the spouse and for each dependent child of a 7
recipient. 8
2. The percentage of the monthly contribution rate paid for the spouse and 9
each dependent child of a recipient who was in a hazardou s position or 10
who is receiving a retirement allowance based on General Assembly 11
service in accordance with subparagraph 1. of this paragraph shall be 12
based solely on the member's service in a hazardous position using the 13
formula in paragraph (b) of this subsection. 14
(e) For members who begin participating in the system on or after July 1, 2003: 15
1. Participation in the insurance benefits provided under this section shall 16
not be allowed until the member has earned at least one hundred twenty 17
(120) months of se rvice in the state -administered retirement systems, 18
except that for members who begin participating in the system on or 19
after September 1, 2008, participation in the insurance benefits provided 20
under this section shall not be allowed until the member has e arned at 21
least one hundred eighty (180) months of service credited under KRS 22
16.543(1) or 61.543(1), or another state-administered retirement system. 23
2. A member who meets the minimum service requirements as provided by 24
subparagraph 1. of this paragraph sh all upon retirement be eligible for 25
the following monthly contribution rate to be paid on his or her behalf, 26
or on behalf of the spouse or dependent of a member with service in a 27
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hazardous position, from the funds specified under paragraph (a)2. of 1
this subsection: 2
a. For members with service in a nonhazardous position, a monthly 3
insurance contribution of ten dollars ($10) for each year of service 4
as a participating employee in a nonhazardous position; 5
b. For members with service in a hazardous position or who 6
participate in the State Police Retirement System, a monthly 7
insurance contribution of fifteen dollars ($15) for each year of 8
service as a participating employee in a hazardous position or the 9
State Police Retirement System; and 10
c. Upon the death of th e retired member, the beneficiary, if the 11
beneficiary is the member's spouse, shall be entitled to a monthly 12
insurance contribution of ten dollars ($10) for each year of service 13
the member attained as a participating employee in a hazardous 14
position. 15
3. The minimum service requirement to participate in benefits as provided 16
by subparagraph 1. of this paragraph shall be waived for a member who 17
receives a satisfactory determination of a hazardous disability that is a 18
direct result of an act in line of duty as defined in KRS 16.505, and the 19
premium for the member, the member's spouse, and for each 20
dependent child as defined in KRS 16.505 shall be paid in full by the 21
systems so long as the member, member's spouse, or dependent child 22
individually remains eligible for a monthly retirement benefit [member 23
shall be entitled to the benefits payable under this subsection as though 24
the member had twenty (20) years of service in a hazardous position]. 25
4. The minimum service required to participate in benefits as provided b y 26
subparagraph 1. of this paragraph shall be waived for a member who is 27
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disabled as a result of a duty -related injury as defined in KRS 61.621 1
and is eligible for the benefits provided by KRS 61.621(5)(b), and the 2
member shall be entitled to the benefits p ayable under this subsection as 3
though the member had twenty (20) years of service in a nonhazardous 4
position. 5
5. Notwithstanding the provisions of this paragraph, the minimum service 6
requirement to participate in benefits as provided by subparagraph 1. of 7
this paragraph shall be waived for a for a member who dies as a direct 8
result of an act in line of duty as defined in KRS 16.505, who becomes 9
totally and permanently disabled as defined in KRS 16.582 as a direct 10
result of an act in line of duty as defined in KRS 16.505, who dies as a 11
result of a duty -related injury as defined in KRS 61.621, or who 12
becomes disabled as a result of a duty -related injury as defined in KRS 13
61.621 and is eligible for the benefits provided by KRS 61.621(5)(a), 14
and the premium for the member, the member's spouse, and for each 15
dependent child as defined in KRS 16.505 shall be paid in full by the 16
systems so long as the member, member's spouse, or dependent child 17
individually remains eligible for a monthly retirement benefit. 18
6. Except as provided by subparagraphs 3. and [subparagraph] 5. of this 19
paragraph, the monthly insurance contribution amount shall be 20
increased: 21
a. On July 1 of each year by one and one -half percent (1.5%). The 22
increase shall be cumulative and shall continue to acc rue after the 23
member's retirement for as long as a monthly insurance 24
contribution is payable to the retired member or beneficiary but 25
shall not apply to any increase in the contribution attributable to 26
the increase specified by subdivision b. of this subparagraph; and 27
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b. On January 1 of each year by five dollars ($5) for members who 1
have accrued an additional full year of service as a participating 2
employee beyond the career threshold, subject to the following 3
restrictions: 4
i. The additional insurance contribution provided by this 5
subdivision shall only be applied to the monthly contribution 6
amounts provided under subparagraph 2.a. and b. of this 7
paragraph; 8
ii. The additional insurance contribution provided by this 9
subdivision s hall only be payable towards the health plans 10
offered by the system to retirees who are not eligible for 11
Medicare or for reimbursements provided to retirees not 12
eligible for Medicare pursuant to subsection (6)(a)2. of this 13
section; and 14
iii. In order for th e annual increase to occur as provided by this 15
subdivision, the funding level of retiree health benefits for 16
the system in which the employee is receiving the additional 17
insurance contribution shall be at least ninety percent (90%) 18
as of the most recent ac tuarial valuation and be projected by 19
the actuary to remain ninety percent (90%) for the year in 20
which the increase is provided. 21
7. The benefits of this paragraph provided to a member whose participation 22
begins on or after July 1, 2003, shall not be consid ered as benefits 23
protected by the inviolable contract provisions of KRS 16.652 or 24
61.692. The General Assembly reserves the right to suspend or reduce 25
the benefits conferred in this paragraph if in its judgment the welfare of 26
the Commonwealth so demands. 27
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8. An employee whose membership date is on or after September 1, 2008, 1
who retires and is reemployed in a regular full -time position required to 2
participate in the system or the County Employees Retirement System 3
shall not be eligible for health insurance c overage or benefits provided 4
by this section and shall take coverage with his or her employing agency 5
during the period of reemployment in a regular full-time position. 6
9. For purposes of this paragraph: 7
a. "Career threshold" for a member with service in a nonhazardous 8
position means twenty -seven (27) years of service credited under 9
KRS 16.543(1), 61.543(1), 78.615(1), or another state -10
administered retirement system and for a member with service in a 11
hazardous position means the service requirements specif ied by 12
KRS 16.577(2) or (3) or 16.583(6)(b), as applicable; and 13
b. "Funding level" means the actuarial value of assets divided by the 14
actuarially accrued liability expressed as a percentage that is 15
determined and reported by the system's actuary in the ann ual 16
actuarial valuation. 17
(f) For members with service in another state -administered retirement system 18
who select hospital and medical insurance plan coverage through the system: 19
1. The system shall compute the member's combined service, including 20
service credit in another state -administered retirement system, and 21
calculate the portion of the member's premium monthly contribution rate 22
to be paid by the funds specified under paragraph (a)2. of this subsection 23
according to the criteria established in paragrap hs (a) to (e) of this 24
subsection. Each state -administered retirement system shall pay 25
annually to the insurance trust fund established under KRS 61.701 the 26
portion of the system's cost of the retiree's monthly contribution for 27
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single coverage for hospital and medical insurance plan which shall be 1
equal to the percentage of the member's number of months of service in 2
the other state -administered retirement plan divided by his or her total 3
combined service and in conjunction with the reciprocal agreement 4
established between the system and the other state -administered 5
retirement systems. The amounts paid by the other state -administered 6
retirement plans and by the Kentucky Retirement Systems from funds 7
specified under paragraph (a)2. of this subsection shall not be more than 8
one hundred percent (100%) of the monthly contribution adopted by the 9
respective boards of trustees; 10
2. A member may not elect coverage for hospital and medical benefits 11
through more than one (1) of the state -administered retirement systems; 12
and 13
3. A state -administered retirement system shall not pay any portion of a 14
member's monthly contribution for medical insurance unless the 15
member is a recipient or annuitant of the plan. 16
(5) Premiums paid for hospital and medical insurance coverage procur ed under 17
authority of this section shall be exempt from any premium tax which might 18
otherwise be required under KRS Chapter 136. The payment of premiums by the 19
funds described by subsection (4)(a)2. of this section shall not constitute taxable 20
income to an insured recipient. No commission shall be paid for hospital and 21
medical insurance procured under authority of this section. 22
(6) (a) The board shall promulgate an administrative regulation to establish a medical 23
insurance reimbursement plan to provide reim bursement for hospital and 24
medical insurance plan premiums of recipients of a retirement allowance who: 25
1. Are not eligible for the same level of hospital and medical benefits as 26
recipients living in Kentucky and having the same Medicare hospital 27
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and medical insurance eligibility status; or 1
2. Are eligible for retiree health subsidies as provided by subsection (4)(e) 2
of this section, except for those recipients eligible for full premium 3
subsidies under subsection (4)(e)5. of this section. The reimbursement 4
program as provided by this subparagraph shall be available to the 5
recipient regardless of the hospital and medical insurance plans offered 6
by the systems. 7
(b) An eligible recipient shall file proof of payment for hospital and medical 8
insurance plan coverage with the retirement office. Reimbursement to eligible 9
recipients shall be made on a quarterly basis. The recipient shall be eligible 10
for reimbursement of substantiated medical insurance premiums for an 11
amount not to exceed the total monthly contribution rate determined under 12
subsection (4) of this section. 13
(c) For purposes of recipients described by paragraph (a)1. of this subsection, the 14
plan shall not be made available if all recipients are eligible for the same 15
coverage as recipients living in Kentucky. 16
Section 2. KRS 78.5536 is amended to read as follows: 17
(1) For purposes of this section: 18
(a) "Hospital and medical insurance plan" may include, at the board's discretion, 19
any one (1) or more of the following: 20
1. Any ho spital and medical expense policy or certificate, provider -21
sponsored integrated health delivery network, self -insured medical plan, 22
health maintenance organization contract, or other health benefit plan; 23
2. Any health savings account as permitted by 26 U.S .C. sec. 223 or health 24
reimbursement arrangement or a similar account as may be permitted by 25
26 U.S.C. sec. 105 or 106. Such arrangement or account, at the board's 26
discretion, may reimburse any medical expense permissible under 26 27
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U.S.C. sec. 213; or 1
3. A medical insurance reimbursement program established by the board 2
through the promulgation of administrative regulation under which 3
members purchase individual health insurance coverage through a health 4
insurance exchange established under 42 U.S.C. sec. 18031 or 18041; 5
(b) "Monthly contribution rate" shall be the amount determined by the board 6
based upon the requirements of subsection (4)(a) to (d) of this section, except 7
that for members who began participating in the system on or after July 1, 8
2003, the term shall mean the amount determined in subsection (4)(e) of this 9
section; and 10
(c) "Months of service" shall mean the total months of combined service used to 11
determine benefits under the system, except service added to determine 12
disability benefits or service otherwise pro hibited from being used to 13
determine retiree health benefits under KRS 78.510 to 78.852 shall not be 14
counted as "months of service." 15
(2) (a) 1. The board of trustees of the system shall arrange by appropriate contract 16
or on a self -insured basis to provide a group hospital and medical 17
insurance plan coverage for: 18
a. Present and future recipients of a retirement allowance from the 19
County Employees Retirement System; and 20
b. The spouse and each qualified dependent of a recipient who is a 21
former member or the be neficiary, provided the spouse and 22
dependent meet the requirements to participate in the hospital and 23
medical insurance plans established, contracted, or authorized by 24
the system. 25
2. Any recipient who chooses coverage under a hospital and medical 26
insurance plan shall pay, by payroll deduction from the retirement 27
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allowance, electronic funds transfer, or by another method, the 1
difference between the premium cost of the hospital and medical 2
insurance plan coverage selected and the monthly contribution rate to 3
which he or she would be entitled under this section. 4
(b) 1. For present and future recipients of a retirement allowance from the 5
system who are not eligible for Medicare and for those recipients 6
described in subparagraph 3.b. of this paragraph, the board may 7
authorize these participants to be included in the Kentucky Employees 8
Health Plan as provided by KRS 18A.225 to 18A.2287 and shall provide 9
benefits for recipients in the plan equal to those provided to state 10
employees having the same Medicare hospital and medical insurance 11
eligibility status. Notwithstanding the provisions of any other statute 12
except subparagraph 3.b. of this paragraph, system recipients shall be 13
included in the same class as current state employees for purposes of 14
determining medical i nsurance policies and premiums in the Kentucky 15
Employees Health Plan as provided by KRS 18A.225 to 18A.2287. 16
2. Regardless of age, if a recipient or the spouse or dependent child of a 17
recipient who elects coverage becomes eligible for Medicare, he or she 18
shall participate in the plans offered by the systems for Medicare 19
eligible recipients. Individuals participating in the Medicare eligible 20
plans may be required to obtain and pay for Medicare Part A and Part B 21
coverage in order to participate in the Medicare eligible plans offered by 22
the system. 23
3. The system shall continue to provide the same hospital and medical 24
insurance plan coverage for recipients and qualifying dependents after 25
the age of sixty-five (65) as before the age of sixty-five (65), if: 26
a. The recipient is not eligible for Medicare coverage; or 27
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b. The recipient would otherwise be eligible for Medicare coverage 1
but is subject to the Medicare Secondary Payer Act under 42 2
U.S.C. sec. 1395y(b) and has been reemployed by a participating 3
agency which offers the recipient a hospital and medical insurance 4
benefit or by a participating agency which is prevented from 5
offering a hospital and medical benefit to the recipient as a 6
condition of reemployment under KRS 70.293, 95.022, or 7
164.952. Individuals who are eligible, pursuant to this subdivision, 8
to be included in the Kentucky Employees Health Plan as provided 9
by KRS 18A.225 to 18A.2287 may be rated as a separate class 10
from other eligible employees and retirees for the purpose of 11
determining medical insurance premiums. 12
(c) For recipients of a retirement allowance who are not eligible for the same 13
level of hospital and medical benefits as recipients living in Kentucky having 14
the same Medicare hospital and medical insurance eligibility status, the board 15
shall provide a medical insurance reimbursement plan as described in 16
subsection (6) of this section. 17
(d) Notwithstanding anything in KRS Chapter 78 to the contrary, the board of 18
trustees, in its discretion, may take necessary steps to ensure compliance with 19
42 U.S.C. sec. 300bb-1 et seq. 20
(3) (a) Each employer participating in the County Employees Retirement System as 21
provided in KRS 78.510 to 78.852 shall contribute to the insurance trust fund 22
established by KRS 61.701 the amount necessary to provide the mont hly 23
contribution rate as provided for under this section. Such employer 24
contribution rate shall be developed by appropriate actuarial method as a part 25
of the determination of each respective employer contribution rate determined 26
under KRS 78.635. 27
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(b) 1. Each employer described in paragraph (a) of this subsection shall deduct 1
from the creditable compensation of each member whose membership 2
date begins on or after July 1, 2003, and who is subject to the benefits 3
provided under subsection (4)(e) of this sectio n, an amount equal to one 4
percent (1%) of the member's creditable compensation if the member is 5
participating in a nonhazardous position and two percent (2%) of the 6
member's creditable compensation if the member is participating in a 7
hazardous position. The deducted amounts shall, at the discretion of the 8
board, be credited to accounts established pursuant to 26 U.S.C. sec. 9
401(h), within the funds established in KRS 78.520, or the insurance 10
trust fund established under KRS 61.701. Notwithstanding the 11
provisions of this paragraph, a transfer of assets between the accounts 12
established pursuant to 26 U.S.C. sec. 401(h), within the funds 13
established in KRS 78.520, and the insurance trust fund established 14
under KRS 61.701 shall not be allowed. 15
2. The employer shall file the contributions as provided by subparagraph 1. 16
of this paragraph at the retirement office in accordance with KRS 17
78.625. Any interest or penalties paid on any delinquent contributions 18
shall be credited to accounts established pursuant to 26 U.S. C. sec. 19
401(h), within the funds established in KRS 78.520, or the insurance 20
trust fund established under KRS 61.701. Notwithstanding any 21
minimum compensation requirements provided by law, the deductions 22
provided by this paragraph shall be made, and the co mpensation of the 23
member shall be reduced accordingly. 24
3. Each employer shall submit payroll reports, contributions lists, and other 25
data as may be required by administrative regulation promulgated by the 26
board of trustees pursuant to KRS Chapter 13A. 27
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4. Every member shall be deemed to consent and agree to the deductions 1
made pursuant to this paragraph, and the payment of salary or 2
compensation less the deductions shall be a full and complete discharge 3
of all claims for services rendered by the person durin g the period 4
covered by the payment, except as to any benefits provided by KRS 5
78.510 to 78.852. No member may elect whether to participate in, or 6
choose the contribution amount to accounts established pursuant to 26 7
U.S.C. sec. 401(h) within the funds est ablished in KRS 78.520, or the 8
insurance trust fund established under KRS 61.701. The member shall 9
have no option to receive the contribution required by this paragraph 10
directly instead of having the contribution paid to accounts established 11
pursuant to 26 U.S.C. sec. 401(h) within the funds established in KRS 12
78.520, or the insurance trust fund established under KRS 61.701. No 13
member may receive a rebate or refund of contributions. If a member 14
establishes a membership date prior to July 1, 2003, pursuant t o KRS 15
61.552(2) or (3) or who is subject to the benefits provided under 16
subsection (4)(b) or (d) of this section, then this paragraph shall not 17
apply to the member and all contributions previously deducted in 18
accordance with this paragraph shall be refunde d to the member without 19
interest. The contribution made pursuant to this paragraph shall not act 20
as a reduction or offset to any other contribution required of a member 21
or recipient under KRS 78.510 to 78.852. 22
5. The board of trustees, at its discretion, m ay direct that the contributions 23
required by this paragraph be accounted for within accounts established 24
pursuant to 26 U.S.C. sec. 401(h) within the funds established in KRS 25
78.520, or the insurance trust fund established under KRS 61.701, 26
through the use of separate accounts. 27
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(4) (a) The premium required to provide hospital and medical insurance plan 1
coverage under this section shall be paid wholly or partly from funds 2
contributed by: 3
1. The recipient of a retirement allowance, by payroll deduction from h is 4
or her retirement allowance, electronic funds transfer, or by other 5
method; 6
2. The insurance trust fund established by KRS 61.701 or accounts 7
established pursuant to 26 U.S.C. sec. 401(h) within the funds 8
established in KRS 78.520; 9
3. Another state -administered retirement system, including the systems 10
administered by Kentucky Retirement Systems, under a reciprocal 11
arrangement, except that any portion of the premium paid from the 12
funds specified by subparagraph 2. of this paragraph under a reciprocal 13
agreement shall not exceed the amount that would be payable under this 14
section if all the member's service were in the County Employees 15
Retirement System. If the board provides for cross -referencing of 16
insurance premiums, the employer's contribution for the wo rking 17
member or spouse shall be applied toward the premium, and the 18
insurance trust fund established under KRS 61.701 or accounts 19
established pursuant to 26 U.S.C. sec. 401(h) within the funds 20
established in KRS 78.520, shall pay the balance; or 21
4. A combination of the fund sources described by subparagraphs 1. to 3. 22
of this paragraph. 23
Group rates under the hospital and medical insurance plan shall be m ade 24
available to the spouse, each dependent child, and each disabled child, 25
regardless of the disabled child's age, of a recipient who is a former member 26
or the beneficiary, if the premium for the hospital and medical insurance for 27
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the spouse, each depende nt child, and each disabled child, or beneficiary is 1
paid by payroll deduction from the retirement allowance, electronic funds 2
transfer, or by another method. For purposes of this subsection only, a child 3
shall be considered disabled if he or she has been determined to be eligible for 4
federal Social Security disability benefits or meets the dependent disability 5
standard established by the Department of Employee Insurance in the 6
Personnel Cabinet. 7
(b) For a member who began participating in the system prior to July 1, 2003, the 8
monthly contribution rate shall be paid by the system from the funds specified 9
under paragraph (a)2. of this subsection and shall be equal to a percentage of 10
the single premium to cover the retired member as follows: 11
1. One hundred per cent (100%) of the monthly premium for single 12
coverage shall be paid for a retired member who had two hundred forty 13
(240) months of service or more upon retirement or for a retired member 14
who when he or she was an employee was disabled as a direct result o f 15
an act in line of duty as defined in KRS 78.510 [(48)] or as a result of a 16
duty-related injury as defined in KRS 61.621; 17
2. Seventy-five percent (75%) of the monthly premium for single coverage 18
shall be paid for a retired member who had less than two hund red forty 19
(240) months of service but at least one hundred eighty (180) months of 20
service upon retirement, provided such retired member agrees to pay the 21
remaining twenty-five percent (25%) by payroll deduction from his or 22
her retirement allowance, electro nic funds transfer, or by another 23
method; 24
3. Fifty percent (50%) of the monthly premium for single coverage shall be 25
paid for a retired member who had less than one hundred eighty (180) 26
months of service but had at least one hundred twenty (120) months of 27
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service upon retirement, provided such retired member agrees to pay the 1
remaining fifty percent (50%) by payroll deduction from his or her 2
retirement allowance, electronic funds transfer, or by another method; or 3
4. Twenty-five percent (25%) of the monthly premium for single coverage 4
shall be paid for a retired member who had less than one hundred twenty 5
(120) months of service but had at least forty -eight (48) months of 6
service upon retirement, provided such retired member agrees to pay the 7
remaining seventy-five percent (75%) by payroll deduction from his or 8
her retirement allowance, electronic funds transfer, or by another 9
method. 10
(c) Notwithstanding paragraph (b) of this subsection, for a member participating 11
in the system prior to July 1, 2003, who: 12
1. Dies as a direct result of an act in line of duty as defined in KRS 78.510 13
or dies as a result of a duty -related injury as defined in KRS 61.621, the 14
monthly premium shall be paid for his or her spouse so long as the 15
spouse remains eligible for a monthly retirement benefit; 16
2. Becomes totally and permanently disabled as defined in KRS 78.5524 as 17
a direct result of an act in line of duty as defined in KRS 78.510 , 18
receives a satisfactory determination of a hazardous disability that is a 19
direct result of an ac t in line of duty as defined in KRS 78.510, or 20
becomes disabled as a result of a duty -related injury as defined in KRS 21
61.621 and is eligible for the benefits provided by KRS 61.621(5)(a), the 22
monthly premium shall be paid for his or her spouse so long as the 23
member and the spouse individually remain eligible for a monthly 24
retirement benefit; and 25
3. Dies as a direct result of an act in line of duty as defined in KRS 78.510, 26
dies as a result of a duty -related injury as defined in KRS 61.621, 27
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becomes totally and permanently disabled as defined in KRS 78.5524 as 1
a direct result of an act in line of duty as defined in KRS 78.510, 2
receives a satisfactory determination of a hazardous disability that is a 3
direct result of an act in line of duty as defined in KRS 78 .510, or 4
becomes disabled as a result of a duty -related injury as defined in KRS 5
61.621 and is eligible for the benefits provided by KRS 61.621(5)(a), the 6
monthly premium shall be paid for each dependent child as defined in 7
KRS 78.510, so long as the membe r remains eligible for a monthly 8
retirement benefit, unless deceased, and each dependent child 9
individually remains eligible under KRS 78.510. 10
(d) 1. For a member who began participating in the system prior to July 1, 11
2003, who was determined to be in a ha zardous position in the County 12
Employees Retirement System, or who is receiving a retirement 13
allowance based on General Assembly service, the funds specified under 14
paragraph (a)2. of this subsection shall also pay a percentage of the 15
monthly contribution r ate sufficient to fund the premium costs for 16
hospital and medical insurance coverage for the spouse and for each 17
dependent child of a recipient. 18
2. The percentage of the monthly contribution rate paid for the spouse and 19
each dependent child of a recipient who was in a hazardous position or 20
who is receiving a retirement allowance based on General Assembly 21
service in accordance with subparagraph 1. of this paragraph shall be 22
based solely on the member's service in a hazardous position using the 23
formula in paragraph (b) of this subsection, except that for any recipient 24
of a retirement allowance from the County Employees Retirement 25
System who was contributing to the system on January 1, 1998, for 26
service in a hazardous position, the percentage of the monthly 27
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contribution shall be based on the total of hazardous service and any 1
nonhazardous service as a police or firefighter with the same agency, if 2
that agency was participating in the County Employees Retirement 3
System but did not offer hazardous duty coverage fo r its police and 4
firefighters at the time of initial participation. 5
(e) For members who begin participating in the system on or after July 1, 2003: 6
1. Participation in the insurance benefits provided under this section shall 7
not be allowed until the member has earned at least one hundred twenty 8
(120) months of service in the state -administered retirement systems, 9
except that for members who begin participating in the system on or 10
after September 1, 2008, participation in the insurance benefits provided 11
under this section shall not be allowed until the member has earned at 12
least one hundred eighty (180) months of service credited under KRS 13
78.615(1) or another state-administered retirement system; 14
2. A member who meets the minimum service requirements as provided by 15
subparagraph 1. of this paragraph shall upon retirement be eligible for 16
the following monthly contribution rate to be paid on his or her behalf, 17
or on behalf of the spouse or dependent of a member with service in a 18
hazardous position, from the fund s specified under paragraph (a)2. of 19
this subsection: 20
a. For members with service in a nonhazardous position who do not 21
meet the career threshold, a monthly insurance contribution of ten 22
dollars ($10) for each year of service as a participating employee 23
in a nonhazardous position; 24
b. For members with service in a nonhazardous position who meet 25
the career threshold, a monthly insurance contribution towards the 26
health plans offered to retirees who are not eligible for Medicare 27
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of forty dollars ($40) for each year of service as a participating 1
employee in a nonhazardous position and a monthly insurance 2
contribution towards the health plans offered to retirees who are 3
eligible for Medicare of ten dollars ($10) for each year of service 4
as a participating employee in a nonhazardous position. The 5
monthly insurance contribution payable to retirees eligible for 6
Medicare under this subdivision shall be adjusted as necessary so 7
that it is equivalent to the monthly contribution amount computed 8
under subdivision a. of thi s subparagraph as adjusted by 9
subparagraph 6.a. of this paragraph; 10
c. For members with service in a hazardous position who do not meet 11
the career threshold, a monthly insurance contribution of fifteen 12
dollars ($15) for each year of service as a participati ng employee 13
in a hazardous position; 14
d. For members with service in a hazardous position who meet the 15
career threshold, a monthly insurance contribution towards the 16
health plans offered to retirees who are not eligible for Medicare 17
of fifty dollars ($50) f or each year of service as a participating 18
employee in a hazardous position and a monthly insurance 19
contribution towards the health plans offered to retirees who are 20
eligible for Medicare of fifteen dollars ($15) for each year of 21
service as a participating employee in a hazardous position. The 22
monthly insurance contribution payable to retirees eligible for 23
Medicare under this subdivision shall be adjusted as necessary so 24
that it is equivalent to the monthly contribution amount computed 25
under subdivision c. of this subparagraph as adjusted by 26
subparagraph 6.a. of this paragraph; and 27
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e. Upon the death of the retired member, the beneficiary, if the 1
beneficiary is the member's spouse, shall be entitled to a monthly 2
insurance contribution of ten dollars ($10) for each year of service 3
the member attained as a participating employee in a hazardous 4
position; 5
3. The minimum service requirement to participate in benefits as provided 6
by subparagraph 1. of this paragraph shall be waived for a member who 7
receives a satisf actory determination of a hazardous disability that is a 8
direct result of an act in line of duty as defined in KRS 78.510 [(48)] and 9
the premium for the member, the member's spouse, and for each 10
dependent child as defined in KRS 78.510 shall be paid in full by the 11
systems so long as the member, member's spouse, or dependent child 12
individually remains eligible for a monthly retirement benefit [member 13
shall be entitled to the benefits payable under this subsection as though 14
the member had twenty (20) years of service in a hazardous position]; 15
4. The minimum service required to participate in benefits as provided by 16
subparagraph 1. of this paragraph shall be waived for a member who is 17
disabled as a result of a duty -related injury as defined in KRS 61.621 18
and is e ligible for the benefits provided by KRS 61.621(5)(b), and the 19
member shall be entitled to the benefits payable under this subsection as 20
though the member had twenty (20) years of service in a nonhazardous 21
position; 22
5. Notwithstanding the provisions of thi s paragraph, the minimum service 23
requirement to participate in benefits as provided by subparagraph 1. of 24
this paragraph shall be waived for a member who dies as a direct result 25
of an act in line of duty as defined in KRS 78.510 [(48)], who becomes 26
totally and permanently disabled as defined in KRS 78.5524 as a direct 27
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result of an act in line of duty as defined in KRS 78.510, who dies as a 1
result of a duty -related injury as defined in KRS 61.621, or who 2
becomes disabled as a result of a duty -related injury as defined in KRS 3
61.621 and is eligible for the benefits provided by KRS 61.621(5)(a), 4
and the premium for the member, the member's spouse, and for each 5
dependent child as defined in KRS 78.510 shall be paid in full by the 6
systems so long as the member, me mber's spouse, or dependent child 7
individually remains eligible for a monthly retirement benefit; 8
6. Except as provided by subparagraphs 3. and [subparagraph] 5. of this 9
paragraph, the monthly insurance contribution amount shall be 10
increased: 11
a. On July 1 o f each year by one and one -half percent (1.5%). The 12
increase shall be cumulative and shall continue to accrue after the 13
member's retirement for as long as a monthly insurance 14
contribution is payable to the retired member or beneficiary but 15
shall not apply to any increase in the contribution attributable to 16
the increase specified by subdivision b. of this subparagraph; and 17
b. On January 1 of each year by five dollars ($5) for members who 18
have accrued an additional full year of service as a participating 19
employee beyond the career threshold, subject to the following 20
restrictions: 21
i. The additional insurance contribution provided by this 22
subdivision shall only be applied to the monthly contribution 23
amounts provided under subparagraph 2.b. and d. of this 24
paragraph; 25
ii. The additional insurance contribution provided by this 26
subdivision shall only be payable towards the health plans 27
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offered by the syste m to retirees who are not eligible for 1
Medicare or for reimbursements provided to retirees not 2
eligible for Medicare pursuant to subsection (6)(a)2. of this 3
section; and 4
iii. In order for the annual increase to occur as provided by this 5
subdivision, the fu nding level of retiree health benefits for 6
the system in which the employee is receiving the additional 7
insurance contribution shall be at least ninety percent (90%) 8
as of the most recent actuarial valuation and be projected by 9
the actuary to remain ninety percent (90%) for the year in 10
which the increase is provided; 11
7. The benefits of this paragraph provided to a member whose participation 12
begins on or after July 1, 2003, shall not be considered as benefits 13
protected by the inviolable contract provisions o f KRS 78.852. The 14
General Assembly reserves the right to suspend or reduce the benefits 15
conferred in this paragraph if in its judgment the welfare of the 16
Commonwealth so demands; 17
8. An employee whose membership date is on or after September 1, 2008, 18
who retires and is reemployed in a regular full -time position required to 19
participate in the system or the Kentucky Retirement Systems shall not 20
be eligible for health insurance coverage or benefits provided by this 21
section and shall take coverage with his or he r employing agency during 22
the period of reemployment in a regular full-time position; and 23
9. For purposes of this paragraph: 24
a. "Career threshold" for a member with service in a nonhazardous 25
position means twenty -seven (27) years of service credited under 26
KRS 16.543(1), 61.543(1), 78.615(1), or another state -27
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administered retirement system and for a member with service in a 1
hazardous position means the service requirements specified by 2
KRS 78.5514(2)(a)2. or (3)(b), or 78.5516(6)(b), as applicable; 3
and 4
b. "Funding level" means the actuarial value of assets divided by the 5
actuarially accrued liability expressed as a percentage that is 6
determined and reported by the system's actuary in the annual 7
actuarial valuation. 8
(f) For members with service in another stat e-administered retirement system 9
who select hospital and medical insurance plan coverage through the system: 10
1. The system shall compute the member's combined service, including 11
service credit in another state -administered retirement system, and 12
calculate the portion of the member's premium monthly contribution rate 13
to be paid by the funds specified under paragraph (a)2. of this subsection 14
according to the criteria established in paragraphs (a) to (e) of this 15
subsection. Each state -administered retirement s ystem shall pay 16
annually to the insurance trust fund established under KRS 61.701 the 17
portion of the system's cost of the retiree's monthly contribution for 18
single coverage for hospital and medical insurance plan which shall be 19
equal to the percentage of t he member's number of months of service in 20
the other state -administered retirement plan divided by his or her total 21
combined service and in conjunction with the reciprocal agreement 22
established between the system and the other state -administered 23
retirement systems. The amounts paid by the other state -administered 24
retirement plans and by the County Employees Retirement System from 25
funds specified under paragraph (a)2. of this subsection shall not be 26
more than one hundred percent (100%) of the monthly contrib ution 27
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adopted by the respective boards of trustees; 1
2. A member may not elect coverage for hospital and medical benefits 2
through more than one (1) of the state -administered retirement systems; 3
and 4
3. A state -administered retirement system shall not pay any portion of a 5
member's monthly contribution for medical insurance unless the 6
member is a recipient or annuitant of the plan. 7
(5) Premiums paid for hospital and medical insurance coverage procured under 8
authority of this section shall be exempt from any pre mium tax which might 9
otherwise be required under KRS Chapter 136. The payment of premiums by the 10
funds described by subsection (4)(a)2. of this section shall not constitute taxable 11
income to an insured recipient. No commission shall be paid for hospital an d 12
medical insurance procured under authority of this section. 13
(6) (a) The board shall promulgate an administrative regulation to establish a medical 14
insurance reimbursement plan to provide reimbursement for hospital and 15
medical insurance plan premiums of recipients of a retirement allowance who: 16
1. Are not eligible for the same level of hospital and medical benefits as 17
recipients living in Kentucky and having the same Medicare hospital 18
and medical insurance eligibility status; or 19
2. Are eligible for retiree health subsidies as provided by subsection (4)(e) 20
of this section, except for those recipients eligible for full premium 21
subsidies under subsection (4)(e)5. of this section. The reimbursement 22
program as provided by this subparagraph shall be available to the 23
recipient regardless of the hospital and medical insurance plans offered 24
by the systems. 25
(b) An eligible recipient shall file proof of payment for hospital and medical 26
insurance plan coverage with the retirement office. Reimbursement to eligible 27
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recipients shall be made on a quarterly basis. The recipient shall be eligible 1
for reimbursement of substantiated medical insurance premiums paid by the 2
recipient to obtain coverage for an amount not to exceed the total monthly 3
contribution rate determined under subsection (4) of this section. For 4
reimbursements provided under paragraph (a)2. of this subsection, the full 5
subsidy under subsection (4)(e)2. of this section shall be reimbursed by the 6
system to the recipient up to the amount individually paid by the r ecipient to 7
obtain coverage. In the case of recipients of a retirement allowance from a 8
nonhazardous position, the reimbursement shall be limited to the amount paid 9
by the recipient to obtain single coverage. 10
(c) For purposes of recipients described by par agraph (a)1. of this subsection, the 11
plan shall not be made available if all recipients are eligible for the same 12
coverage as recipients living in Kentucky. 13
Section 3. Whereas protecting and honoring the public safety of ficers who have 14
given their health and their lives in service to the Commonwealth is a value held by all 15
Kentuckians, an emergency is declared to exist, and this Act takes effect upon its passage 16
and approval by the Governor or upon its otherwise becoming a law. 17