AN ACT relating to actuarial costs of annual leave payments in the Teachers' Retirement System.

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AN ACT relating to actuarial costs of annual leave payments in the Teachers' 1
Retirement System. 2
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 3
Section 1. KRS 161.540 is amended to read as follows: 4
(1) (a) Each individual who becomes a contributing nonuniversity member prior to 5
January 1, 2022, shall contribute to the retirement system twelve and eight 6
hundred fifty-five thousandths percent (12.855%) of annual compensation, of 7
which: 8
1. Nine and one hundred five thousandths percent (9.105%) of annual 9
compensation shall be used to fund pension benefits; and 10
2. Three and three -quarters percent (3.75%) of annual compensation shall 11
be used to fund retiree health benefits. 12
(b) Each individual who becomes a contributing university member prior to 13
January 1, 2022, shall contribute to the retirement system ten and four -tenths 14
percent (10.4%) of annual compensation, of which: 15
1. Seven and six hundred twenty -five thousandths percent (7.625%) of 16
annual compensation shall be used to fund pension benefits; and 17
2. Two and seven hundred seventy -five thousandths percent (2.775%) of 18
annual compensation shall be used to fund retiree health benefits. 19
(c) Each individual who becomes a contribut ing nonuniversity member on or 20
after January 1, 2022, shall contribute to the retirement system fourteen and 21
three-quarters percent (14.75%) of annual compensation, of which: 22
1. Nine percent (9%) of annual compensation shall be used to fund pension 23
benefits in the foundational benefit component as described by KRS 24
161.633. The contribution provided by this subparagraph shall not be 25
used to fund the supplemental benefit account as provided by KRS 26
161.635; 27
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2. Two percent (2%) of annual compensation shall fund the required 1
employee contribution in the supplemental benefit component in KRS 2
161.635, except that the board may direct these contributions on a 3
prospective basis into the pension and life insurance funds to contain 4
costs of the foundational benefit com ponent within the provisions of 5
KRS 161.633; and 6
3. Three and three -quarters percent (3.75%) of annual compensation shall 7
be used to fund retiree health benefits. 8
(d) Each individual who becomes a contributing university member on or after 9
January 1, 2022, shall contribute to the retirement system nine and seven 10
hundred seventy-five thousandths percent (9.775%) of annual compensation, 11
of which: 12
1. Five percent (5%) of annual compensation shall be used to fund pension 13
benefits in the foundational benefit com ponent as described by KRS 14
161.634. The contribution provided by this subparagraph shall not be 15
used to fund the supplemental benefit account as provided by KRS 16
161.636; 17
2. Two percent (2%) of annual compensation shall fund the required 18
employee contributi on in the supplemental benefit component in KRS 19
161.636, except that the board may direct these contributions on a 20
prospective basis into the pension and life insurance funds to contain 21
costs of the foundational benefit component within the provisions of 22
KRS 161.634; and 23
3. Two and seven hundred and seventy -five thousandths percent (2.775%) 24
of annual compensation shall be used to fund retiree health benefits. 25
(e) When the funds established to actuarially fund pension annuities and the 26
medical insurance fund established under KRS 161.420 become fully funded 27
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as determined by the annual actuarial valuation, the board of trustees shall 1
recommend to the General Assembly that the contributions required under 2
paragraph (a)2., (b)2., (c)3., or (d)3. of this subsecti on shall, in an actuarially 3
accountable manner, be either decreased, suspended, or eliminated. 4
(f) 1. Payments authorized by statute that are made to retiring members[,] who 5
became members of the system before July 1, 2008, for not more than 6
sixty (60) day s of unused accrued annual leave shall, subject to KRS 7
161.220(10), be considered as part of the member's annual 8
compensation, and shall be used only for the member's final year of 9
active service. Notwithstanding the provisions of this subsection or any 10
other statute to the contrary, for retirement calculation purposes, 11
members may only be credited for payment of annual leave under the 12
following conditions: 13
a.[1.] Payment by an employer for unused accrued annual leave at 14
retirement shall be equally available to all members serving under 15
contracts requiring the same number of worked days and greater; [ 16
and] 17
b.[2.] At least two (2) members of the employer shall receive payment 18
for unused accrued annual leave; 19
c. The member shall have accrued annual leave prior to August 1, 20
2026, with an employer who compensates unused accrued 21
annual leave for retirement calculation purposes pursuant to this 22
paragraph; and 23
d. The payment for unused accrued annual leave must be with an 24
employer who began compensating unused accrued annual leave 25
for retirement calculation purposes prior to August 1, 2026. 26
2. a. Actuarial costs to the Teachers' Retirement System for the 27
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inclusion of payment for unused accrued annual leave days that 1
are eligible for compensation under subparagraph 1. of this 2
paragraph shall be funded in accordance with subdivision b. of 3
this subparagraph. 4
b. i. In the case of an employer specified in subsection (4)(a) 5
and (c) of Section 2 of this Act, the state shall pay the 6
actuarial costs for the compensation attrib utable to the 7
actual unused annual leave accrued as of July 31, 2026, 8
plus annual adjustments to the annual leave balance each 9
fiscal year thereafter, based upon the annual leave accrued 10
or used by the teacher or employee, not to exceed five (5) 11
additional days per year. 12
ii. In the case of an employer except those specified in 13
subsection (4)(a) and (c) of Section 2 of this Act, the state 14
shall pay the actuarial costs for the compensation 15
attributable to the actual unused annual leave accrued as 16
of July 31, 2026. 17
iii. The last employer who is compensating the unused accrued 18
annual leave as provided in subparagraph 1. of this 19
paragraph shall pay the actuarial costs of compensation for 20
unused accrued annual leave days not paid by the state 21
under subparts i. to ii. of this subdivision. Upon the 22
teacher's or employee's retirement, the Teachers' 23
Retirement System shall bill the last employer for the cost 24
of the unused accrued annual leave days, and the employer 25
shall pay the costs within fifteen (15) days after rec eiving 26
notification of the cost from the system. 27
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iv. The actuarial costs of the unused accrued annual leave 1
days shall be the amount payable for days after the fixed 2
statutory employee and employer contributions have been 3
paid as provided in this section a nd KRS 161.550(1) and 4
that is necessary to fund the benefit. The amount 5
contributed by the state or the last employer to fund the 6
benefit provided by this paragraph may be adjusted by the 7
General Assembly if in its judgment the welfare of the 8
Commonwealth so demands. 9
3. The provisions of this paragraph shall only apply to unused accrued 10
annual leave that is included for retirement calculation purposes in 11
the Teachers' Retirement System and this paragraph shall not limit an 12
employer's option to compensate employees for unu sed annual leave 13
that is not included for retirement calculation purposes in the 14
Teachers' Retirement System. 15
(g) The contribution of members shall not exceed the applicable percentages on 16
annual compensation as set forth in this section or as where otherw ise limited 17
by statute. When a member retires, if it is determined that he or she has made 18
contributions on a salary in excess of the amount to be included for the 19
purpose of calculating his or her final average salary, any excess contribution 20
shall be refunded in a lump sum to the member's employer for distribution to 21
the member. 22
(2) Each public board, institution, or agency listed in KRS 161.220(4) shall, solely for 23
the purpose of compliance with Section 414(h) of the United States Internal 24
Revenue Code, pick up the member contributions required by this section for all 25
compensation earned after August 1, 1982, and the contributions so picked up shall 26
be treated as employer contributions in determining tax treatment under the United 27
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States Internal Revenue Code and KRS 141.010. The picked -up member 1
contribution shall satisfy all obligations to the retirement system satisfied prior to 2
August 1, 1982, by the member contribution, and the picked -up member 3
contribution shall be in lieu of a member contribution. E ach employer shall pay 4
these picked-up member contributions from the same source of funds which is used 5
to pay earnings to the member. The member shall have no option to receive the 6
contributed amounts directly instead of having them paid by the employer t o the 7
system. Member contributions picked -up after August 1, 1982, shall be treated for 8
all purposes of KRS 161.220 to 161.714 in the same manner and to the same extent 9
as member contributions made prior to August 1, 1982. 10
Section 2. KRS 161.220 is amended to read as follows: 11
As used in KRS 161.220 to 161.716 and 161.990: 12
(1) "Retirement system" means the arrangement provided for in KRS 161.220 to 13
161.716 and 161.990 for payment of allowances to members; 14
(2) "Retirement a llowance" means the amount annually payable during the course of 15
his or her natural life to a member who has been retired by reason of service; 16
(3) "Disability allowance" means the amount annually payable to a member retired by 17
reason of disability; 18
(4) "Member" means the commissioner of education, deputy commissioners, associate 19
commissioners, and all division directors in the State Department of Education, 20
employees participating in the system pursuant to KRS 196.167(3)(b)1., and any 21
full-time teacher or professional occupying a position requiring certification or 22
graduation from a four (4) year college or university, as a condition of employment, 23
and who is employed by public boards, institutions, or agencies as follows: 24
(a) Local boards of education and public charter schools if the public charter 25
school satisfies the criteria set by the Internal Revenue Service to participate 26
in a governmental retirement plan; 27
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(b) Eastern Kentucky University, Kentucky State University, Morehead State 1
University, Murray S tate University, Western Kentucky University, and any 2
community colleges established under the control of these universities; 3
(c) State-operated secondary area vocational education or area technology 4
centers, Kentucky School for the Blind, and Kentucky School for the Deaf; 5
(d) Other public education agencies as created by the General Assembly and 6
those members of the administrative staff of the Teachers' Retirement System 7
of the State of Kentucky whom the board of trustees may designate by 8
administrative regulation; 9
(e) Regional cooperative organizations formed by local boards of education or 10
other public educational institutions listed in this subsection, for the purpose 11
of providing educational services to the participating organizations; 12
(f) All full -time members of the staffs of the Kentucky Association of School 13
Administrators, Kentucky Education Association, Kentucky Vocational 14
Association, Kentucky High School Athletic Association, Kentucky 15
Academic Association, and the Kentucky School Boards Associati on who 16
were members of the Kentucky Teachers' Retirement System or were 17
qualified for a position covered by the system at the time of employment by 18
the association in the event that the board of directors of the respective 19
association petitions to be inclu ded. The board of trustees of the Kentucky 20
Teachers' Retirement System may designate by resolution whether part -time 21
employees of the petitioning association are to be included. The state shall 22
make no contributions on account of these employees, either fu ll-time or part-23
time. The association shall make the employer's contributions, including any 24
contribution that is specified under KRS 161.550. The provisions of this 25
paragraph shall be applicable to persons in the employ of the associations on 26
or subsequent to July 1, 1972; 27
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(g) Employees of the Council on Postsecondary Education who were employees 1
of the Department for Adult Education and Literacy and who were members 2
of the Kentucky Teachers' Retirement System at the time the department was 3
transferred to the council pursuant to Executive Order 2003-600; 4
(h) The Office of Career and Technical Education; 5
(i) The Office of Vocational Rehabilitation; 6
(j) The Kentucky Educational Collaborative for State Agency Children; 7
(k) The Governor's Scholars Program; 8
(l) Any person who is retired for service from the retirement system and is 9
reemployed by an employer identified in this subsection in a position that the 10
board of trustees deems to be a member, except that any person who becomes 11
a member on or after January 1 , 2022, and subsequently draws a monthly 12
lifetime retirement allowance, shall upon reemployment after retirement not 13
earn a second retirement account; 14
(m) Employees of the former Cabinet for Workforce Development who are 15
transferred to the Kentucky Communi ty and Technical College System and 16
who occupy positions covered by the Kentucky Teachers' Retirement System 17
shall remain in the Teachers' Retirement System. New employees occupying 18
these positions, as well as newly created positions qualifying for Teacher s' 19
Retirement System coverage that would have previously been included in the 20
former Cabinet for Workforce Development, shall be members of the 21
Teachers' Retirement System; 22
(n) Effective January 1, 1998, employees of state community colleges who are 23
transferred to the Kentucky Community and Technical College System shall 24
continue to participate in federal old age, survivors, disability, and hospital 25
insurance, and a retirement plan other than the Kentucky Teachers' Retirement 26
System offered by Kentucky Community and Technical College System. New 27
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employees occupying positions in the Kentucky Community and Technical 1
College System as referenced in KRS 164.5807(5) that would not have 2
previously been included in the former Cabinet for Workforce Development, 3
shall participate in federal old age, survivors, disability, and hospital 4
insurance and have a choice at the time of employment of participating in a 5
retirement plan provided by the Kentucky Community and Technical College 6
System, including participation in the Kentucky Teachers' Retirement System, 7
on the same basis as faculty of the state universities as provided in KRS 8
161.540 and 161.620; 9
(o) Employees of the Office of General Counsel, the Office of Budget and 10
Administrative Services, and the Office of Quali ty and Human Resources 11
within the Office of the Secretary of the former Cabinet for Workforce 12
Development and the commissioners of the former Department for Adult 13
Education and Literacy and the former Department for Technical Education 14
who were contributin g to the Kentucky Teachers' Retirement System as of 15
July 15, 2000; 16
(p) Employees of the Kentucky Department of Education only who are graduates 17
of a four (4) year college or university, notwithstanding a substitution clause 18
within a job classification, and who are serving in a professional job 19
classification as defined by the department; 20
(q) The Governor's School for Entrepreneurs Program; 21
(r) Employees of the Office of Adult Education within the Department of 22
Workforce Development in the Education and Labor Cabinet who were 23
employees of the Council on Postsecondary Education, Kentucky Adult 24
Education Program and who were members of the Kentucky Teachers' 25
Retirement System at the time the Program was transferred to the cabinet 26
pursuant to Executive Orders 2019-0026 and 2019-0027; 27
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(s) Employees of the Education Professional Standards Board who were 1
members of the Kentucky Teachers' Retirement Syst em at the time the 2
employees were transferred to the Kentucky Department of Education 3
pursuant to Executive Order 2020-590; and 4
(t) WeLeadCS, the virtual computer science career academy established in KRS 5
158.809; 6
(5) "Present teacher" means any teacher wh o was a teacher on or before July 1, 1940, 7
and became a member of the retirement system created by 1938 (1st Extra. Sess.) 8
Ky. Acts ch. 1, on the date of the inauguration of the system or within one (1) year 9
after that date, and any teacher who was a membe r of a local teacher retirement 10
system in the public elementary or secondary schools of the state on or before July 11
1, 1940, and continued to be a member of the system until he or she, with the 12
membership of the local retirement system, became a member of the state Teachers' 13
Retirement System or who becomes a member under the provisions of KRS 14
161.470(4); 15
(6) "New teacher" means any member not a present teacher; 16
(7) "Prior service" means the number of years during which the member was a teacher 17
in Kentucky prior to July 1, 1941, except that not more than thirty (30) years' prior 18
service shall be allowed or credited to any teacher; 19
(8) "Subsequent service" means the number of years during which the teacher is a 20
member of the Teachers' Retirement System after July 1, 1941; 21
(9) "Final average salary" means the average of the five (5) highest annual salaries 22
which the member has received for service in a covered position and on which the 23
member has made contributions, or on which the public board, institution, or 24
agency has picked -up member contributions pursuant to KRS 161.540(2), or the 25
average of the five (5) years of highest salaries as defined in KRS 61.680(2)(a), 26
which shall include picked -up member contributions. Additionally, the board of 27
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trustees may approve a final average salary based upon the average of the three (3) 1
highest salaries for individuals who become members prior to January 1, 2022, who 2
are at least fifty -five (55) years of age and have a minimum of twenty -seven (27) 3
years of Kentucky service credit. However, if any of the five (5) or three (3) highest 4
annual salaries used to calculate the final average salary was paid within the three 5
(3) years immediately prior to the date of the member's retirement for individuals 6
who become members prior t o January 1, 2022, or within the five (5) years 7
immediately prior to the date of the member's retirement for individuals who 8
become members on or after January 1, 2022, the amount of salary to be included 9
for each of those three (3) years or five (5) years , as applicable, for the purpose of 10
calculating the final average salary shall be limited to the lesser of: 11
(a) The member's actual salary; or 12
(b) The member's annual salary that was used for retirement purposes during each 13
of the prior three (3) years or five (5) years, as applicable, plus a percentage 14
increase equal to the percentage increase received by all other members 15
employed by the public board, institution, or agency, or for members of 16
school districts, the highest percentage increase received by m embers on any 17
one (1) rank and step of the salary schedule of the school district. The increase 18
shall be computed on the salary that was used for retirement purposes. The 19
board of trustees may promulgate an administrative regulation in accordance 20
with KRS Chapter 13A to establish a methodology for measuring the 21
limitation so that the combined increases in salary for each of the last three (3) 22
full years of salary prior to retirement shall not exceed the total permissible 23
percentage increase received by othe r members of the employer for the same 24
three (3) year period. 25
For individuals who became members of the retirement system prior to July 1, 26
2021, this limitation shall not apply if the member receives an increase in salary in a 27
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percentage exceeding that re ceived by the other members, and this increase was 1
accompanied by a corresponding change in position or in length of employment. 2
The board of trustees may promulgate an administrative regulation in accordance 3
with KRS Chapter 13A to provide definitions for a corresponding change in 4
position or in length of employment. This limitation shall also not apply to the 5
payment to a member for unused accrued annual leave as provided by subsection 6
(1)(f) of Section 1 of this Act if the individual becomes a member bef ore July 1, 7
2008, or accrued sick leave which is authorized by statute and which shall, for 8
individuals subject to KRS 161.155(10) who became nonuniversity members of the 9
system prior to January 1, 2022, be included as part of a retiring member's annual 10
compensation for the member's last year of active service; 11
(10) "Annual compensation" means the total salary received by a member as 12
compensation for all services performed in employment covered by the retirement 13
system during a fiscal year. Annual compensation shall not include payment for any 14
benefit or salary adjustments made by the public board, institution, or agency to the 15
member or on behalf of the member which is not available as a benefit or salary 16
adjustment to other members employed by that public board, institution, or agency. 17
Annual compensation shall not include the salary supplement received by a member 18
under KRS 157.197(2)(c), 158.6455, or 158.782 on or after July 1, 1996. Under no 19
circumstances shall annual compensation include compensation th at is earned by a 20
member while on assignment to an organization or agency that is not a public 21
board, institution, or agency listed in subsection (4) of this section. In the event that 22
federal law requires that a member continue membership in the retiremen t system 23
even though the member is on assignment to an organization or agency that is not a 24
public board, institution, or agency listed in subsection (4) of this section, the 25
member's annual compensation for retirement purposes shall be deemed to be the 26
annual compensation, as limited by subsection (9) of this section, last earned by the 27
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member while still employed solely by and providing services directly to a public 1
board, institution, or agency listed in subsection (4) of this section. The board of 2
trustees shall determine if any benefit or salary adjustment qualifies as annual 3
compensation. For an individual who becomes a member on or after July 1, 2008, 4
and as limited by subsection (1)(f) of Section 1 of this Act, annual compensation 5
shall not include l ump-sum payments upon termination of employment for unused 6
accrued[accumulated] annual or compensatory leave; 7
(11) "Age of member" means the age attained on the first day of the month immediately 8
following the birthdate of the member. This definition is l imited to retirement 9
eligibility and does not apply to tenure of members; 10
(12) "Employ," and derivatives thereof, means relationships under which an individual 11
provides services to an employer as an employee, as an independent contractor, as 12
an employee of a third party, or under any other arrangement as long as the services 13
provided to the employer are provided in a position that would otherwise be 14
covered by the Kentucky Teachers' Retirement System and as long as the services 15
are being provided to a publi c board, institution, or agency listed in subsection (4) 16
of this section; 17
(13) "Regular interest" means: 18
(a) For an individual who becomes a member prior to July 1, 2008, interest at 19
three percent (3%) per annum; 20
(b) For an individual who becomes a member on or after July 1, 2008, but prior to 21
January 1, 2022, interest at two and one -half percent (2.5%) per annum for 22
purposes of crediting interest to the teacher savings account or any other 23
contributions made by the employee that are refundable to the emplo yee upon 24
termination of employment; and 25
(c) For an individual who becomes a member on or after January 1, 2022, the 26
rolling five (5) year yield on a thirty (30) year United States Treasury bond as 27
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of the end of May prior to the most recently completed fisc al year, except 1
that: 2
1. Once the member has at least sixty (60) months of service in the system 3
it shall mean interest at two and one -half percent (2.5%) per annum for 4
purposes of crediting interest to employee contributions in the 5
foundational benefit co mponent or any other contributions made by the 6
employee to the foundational benefit component that are refundable to 7
the employee upon termination of employment; and 8
2. The board shall have the authority to adjust the regular interest rate for 9
individuals who become members on or after January 1, 2022, in 10
accordance with KRS 161.633 and 161.634; 11
(14) "Accumulated contributions" means the contributions of a member to the teachers' 12
savings fund, including picked -up member contributions as described in KRS 13
161.540(2), plus accrued regular interest; 14
(15) "Annuitant" means a person who receives a retirement allowance or a disability 15
allowance; 16
(16) "Local retirement system" means any teacher retirement or annuity system created 17
in any public school district in Kentucky in accordance with the laws of Kentucky; 18
(17) "Fiscal year" means the twelve (12) month period from July 1 to June 30. The 19
retirement plan year is concurrent with this fiscal year. A contract for a member 20
employed by a local board of education may n ot exceed two hundred sixty -one 21
(261) days in the fiscal year; 22
(18) "Public schools" means the schools and other institutions mentioned in subsection 23
(4) of this section; 24
(19) "Dependent" as used in KRS 161.520 and 161.525 means a person who was 25
receiving, at the time of death of the member, at least one -half (1/2) of the support 26
from the member for maintenance, including board, lodging, medical care, and 27
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related costs; 1
(20) "Active contributing member" means a member currently making contributions to 2
the Teachers' Retirement System, who made contributions in the immediate 3
preceding fiscal year, for whom picked -up member contributions are currently 4
being made, or for whom thes e contributions were made in the immediate 5
preceding fiscal year; 6
(21) "Full-time" means employment in a position that requires services on a continuing 7
basis equal to at least seven -tenths (7/10) of normal full -time service on a fiscal 8
year basis; 9
(22) "Full actuarial cost," when used to determine the payment or payments that a 10
member must pay for service credit means the actuarial value of all costs associated 11
with the enhancement of a member's benefits or eligibility for benefit 12
enhancements, including h ealth insurance supplement payments made by the 13
retirement system. The board may promulgate administrative regulations in 14
accordance with KRS Chapter 13A to provide the methodology for the assessment 15
of and procedures for the payment and collection of the full actuarial cost of the 16
purchased service. The actuary for the retirement system shall determine the full 17
actuarial value costs and actuarial cost factor tables as provided in KRS 161.400; 18
(23) "Last annual compensation" means the annual compensation, a s defined by 19
subsection (10) of this section and as limited by subsection (9) of this section, 20
earned by the member during the most recent period of contributing service, either 21
consecutive or nonconsecutive, that is sufficient to provide the member with one (1) 22
full year of service credit in the Kentucky Teachers' Retirement System, and which 23
compensation is used in calculating the member's initial retirement allowance, 24
excluding bonuses, retirement incentives, payments for accumulated sick leave, 25
annual, personal, and compensatory leave, and any other lump -sum payment. For 26
an individual who becomes a member on or after July 1, 2008, and as limited by 27
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subsection (1)(f) of Section 1 of this Act, payments for unused accrued annual or 1
compensatory leave shall not be included in determining the member's last annual 2
compensation; 3
(24) "Participant" means a member, as defined by subsection (4) of this section, or an 4
annuitant, as defined by subsection (15) of this section; 5
(25) "Qualified domestic relations order" means any judgment, decree, or order, 6
including approval of a property settlement agreement, that: 7
(a) Is issued by a court or administrative agency; and 8
(b) Relates to the provision of child support, alimony payments, or marital 9
property rights to an alternate payee; 10
(26) "Alternate payee" means a spouse, former spouse, child, or other dependent of a 11
participant, who is designated to be paid retirement benefits in a qualified domestic 12
relations order; 13
(27) "University member" means an individual who becom es a member through 14
employment with an employer specified in subsection (4)(b) and (n) of this section; 15
(28) "Nonuniversity member" means an individual who becomes a member through 16
employment with an employer specified under subsection (4) of this section, except 17
for those members employed by an employer specified in subsection (4)(b) and (n) 18
of this section; 19
(29) "Accumulated employer contribution" means the employer contribution deposited 20
to a member's account through the supplemental benefit component an d regular 21
interest credited on such amounts as provided by KRS 161.635 for nonuniversity 22
members and KRS 161.636 for university members; 23
(30) "Accumulated account balance" means: 24
(a) For members who began participating in the system prior to January 1, 202 2, 25
the member's accumulated contributions; or 26
(b) For members who began participating in the system on or after January 1, 27
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2022, the combined sum of the member's accumulated contributions and the 1
member's accumulated employer contributions; 2
(31) "Foundational benefit component" means the benefits provided by KRS 161.220 to 3
161.716 to individuals who become members on or after January 1, 2022, except 4
for the supplemental benefit component and retiree health benefits set forth in KRS 5
161.675; and 6
(32) "Supplemental benefit component" means: 7
(a) The benefit established pursuant to KRS 161.635 for individuals who become 8
nonuniversity members on or after January 1, 2022; or 9
(b) The benefit established pursuant to KRS 161.636 for individuals who become 10
university members on or after January 1, 2022. 11