CHAPTER 181
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CHAPTER 181
( HB 259 )
AN ACT relating to employees of the Kentucky State Police and declaring an emergency.
Be it enacted by the General Assembly of the Commonwealth of Kentucky:
Section 1. KRS 16.052 is amended to read as follows:
(1) The base compensation of troopers and commercial vehicle enforcement officers shall be determined based
on years of service and rank, as provided in this section.
(2) (a) The years-of-service requirements for the salary schedule for ranks below sergeant are as follows:
1. A trooper and a commercial vehicle enforcement officer shall have[is an officer with] less than
three (3) years of continuous service as a commissioned trooper or commercial vehicle
enforcement officer with the department;
2. A senior trooper and a senior commercial vehicle enforcement officer shall have:
a. At least three (3) years of continuous service as a commissioned trooper or commercial
vehicle enforcement officer with the department and sixty (60) college credit hours;
b. At least four (4) years of continuous service as a commissioned trooper or commercial
vehicle enforcement officer with the department and thirty-two (32) college credit hours;
or
c. Five (5) years of continuous service as a commissioned trooper or commercial vehicle
enforcement officer with the department with no college credit requirement;
3. A trooper first class and a commercial vehicle enforcement officer first class shall have at least
ten (10) years of continuous service as a commissioned trooper or commercial vehicle
enforcement officer with the department; and
4. A master trooper and a master commercial vehicle enforcement officer shall have at least
fifteen (15) years of continuous service as a commissioned trooper or commercial vehicle
enforcement officer with the department.
(b) In addition to meeting the years of service requirements established by paragraph (a) of this subsection,
troopers and commercial vehicle enforcement officers listed in the salary schedule for troopers and
commercial vehicle enforcement officers below the rank of sergeant shall also meet the requirements
for promotion in rank established by the commissioner pursuant to KRS 16.050.
(c) Requirements for promotion to sergeant, lieutenant, and captain are as established by KRS 16.055.
(3) Any overtime and any salary supplement received from the Law Enforcement Foundation Program pursuant to
KRS 15.410 to 15.510 or any comparable supplements received from another funding source shall be in
addition to the amounts reflected in the base salary schedules established by subsection (4) of this section.
(4) (a) The salary schedules established in this subsection are based on a combination of trooper and
commercial vehicle enforcement officer classification and years of service.
(b) When "NA" appears in the schedule, it is not possible for a[an] trooper or commercial vehicle
enforcement officer to be in that classification and years-of-service combination based upon statutory
or regulatory conditions established for promotion or advancement.
(c) Salary increases based on years of service shall be effective on the first day of the month during which
the anniversary of the trooper's or commercial vehicle enforcement officer's appointment as a
commissioned Kentucky State Police officer falls.
(d) Salary increases based on promotion to a higher rank shall be effective on the first day the trooper and
commercial vehicle enforcement officer is promoted.
(e) If a[an] trooper or commercial vehicle enforcement officer is reverted to a previous rank, the trooper's
or commercial vehicle enforcement officer's salary shall be adjusted to the salary reflected in the base
salary schedule for the trooper's or commercial vehicle enforcement officer's applicable number of ACTS OF THE GENERAL ASSEMBLY 2
years of service and rank. The adjustment shall take effect the first pay period following the pay period
in which the reversion occurs.
(f) The base salary for a cadet trooper or commercial vehicle enforcement officer cadet shall be forty-
five[thirty-five] thousand dollars ($45,000[$35,000]).
(g) The salary for a legislative security specialist, as established in KRS 16.187 and 16.188, shall be the
equivalent of the base salary for a trooper or commercial vehicle enforcement officer with the same
number of years of service.
BASE SALARY SCHEDULE FOR RANKS BELOW SERGEANT
Years of Service Trooper Salary Steps Based on Rank
Trooper Senior First Class Master
Base Pay $55,888.80 N/A N/A N/A
3 years $59,583.12 $61,422.00 N/A N/A
5 years N/A $62,719.20 N/A N/A
7 years N/A $64,053.12 N/A N/A
9 years N/A $65,428.08 N/A N/A
10 years N/A N/A $65,723.76 N/A
13 years N/A N/A $68,368.08 N/A
15 years N/A N/A N/A $74,742.00
17 years N/A N/A N/A $77,837.04
19 years N/A N/A N/A $81,116.88
21 years N/A N/A N/A $84,499.20
23 years N/A N/A N/A $88,081.20
25 years N/A N/A N/A $88,834.56
27 years N/A N/A N/A $89,594.16
29 years N/A N/A N/A $90,361.68
[Base Pay $37,887 $43,014 NA NA
3 years $41,310 NA NA NA
5 years $43,014 $44,216 NA NA
7 years NA $45,452 NA NA
9 years NA $46,726 NA NA
10 years NA NA $47,000 NA
13 years NA NA $49,450 NA
15 years NA NA NA $55,356
17 years NA NA NA $58,224
19 years NA NA NA $61,263
21 years NA NA NA $64,397
23 years NA NA NA $67,716
25 years NA NA NA $68,414
27 years NA NA NA $69,118
29 years NA NA NA $69,829 CHAPTER 181
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BASE SALARY SCHEDULE SERGEANT AND ABOVE
Years of Service Salary Steps Based on Rank
Sergeant Lieutenant Captain
6 years $45,271 NA NA
7 years $47,271 $53,500 NA
8 years $47,805 NA $59,100
9 years $49,918 $54,500 NA
11 years $50,911 $56,000 $61,199
13 years $53,108 $58,000 $63,798
15 years $56,966 $61,000 $67,188
17 years $61,093 $65,000 $70,747
19 years $65,510 $70,436 $74,845
21 years $70,235 $74,158 $78,409
23 years $75,292 $78,066 $82,529
25 years $80,702 $82,169 $86,755
27 years $85,491 $86,478 $90,306
29 years $90,686 $91,002 $93,998]
(5) The base salary for ranks defined in KRS 16.055 and 16.191 shall be set at:
(a) Ten percent (10%) above the base salary for the trooper's or commercial vehicle enforcement
officer's applicable number of years of service for the rank of sergeant;
(b) Twenty percent (20%) above the base salary for the trooper's or commercial vehicle enforcement
officer's applicable number of years of service for the rank of lieutenant; and
(c) Thirty percent (30%) above the base salary for the trooper's or commercial vehicle enforcement
officer's applicable number of years of service for the rank of captain.
(6) Beginning on July 1, 2023[2018], the salary schedule established by subsection (4) of this section shall be
adjusted annually to incorporate any increase in the nonseasonally adjusted Consumer Price Index for all urban
consumers, U.S. city average, all items, published by the United States Department of Labor, Bureau of Labor
Statistics.
(7)[(6)] The salary schedules shall be applied to troopers and commercial vehicle enforcement officers
employed by the department on July 1, 2022[July 15, 2016], as follows:
(a) Except as provided in paragraph (b) of this subsection:
1. Any trooper or commercial vehicle enforcement officer whose base salary exceeds the amount
established for his or her years of service and rank in subsection (4) of this section shall retain his
or her base salary and shall not receive an increase under the salary schedule until the trooper's
or commercial vehicle enforcement officer's years of service and rank require a higher base
salary than the base salary he or she was receiving on July 1, 2022[July 15, 2016]; and
2. Any trooper or commercial vehicle enforcement officer whose base salary is below the amount
established for his or her years of service and rank in subsection (4) of this section shall receive
the base salary he or she qualifies for under the salary schedule for the pay period beginning July
1, 2022[August 1, 2016]; and
(b) Any trooper or commercial vehicle enforcement officer who is receiving compensation under KRS
16.165 shall not receive any years of service or rank increases during any period that he or she is
receiving compensation under KRS 16.165. ACTS OF THE GENERAL ASSEMBLY 4
(8)[(7)] The commissioner may establish additional ranks beyond those provided in the salary schedules
established by this section, including the ranks of major, lieutenant colonel, colonel, and executive security
detail. If the commissioner establishes any of these ranks, the commissioner shall set forth in a policy the
conditions under which a[an] trooper or commercial vehicle enforcement officer may be promoted to the
rank, and the salary that the trooper or commercial vehicle enforcement officer will receive while serving in
that rank.
Section 2. KRS 16.583 is amended to read as follows:
(1) A member of the State Police Retirement System, a member of the Kentucky Employees Retirement System in
a hazardous duty position covered by this section, whose participation begins on or after January 1, 2014, or a
member making an election pursuant to KRS 61.5955, shall receive the retirement benefits provided by this
section in lieu of the retirement benefits provided under KRS 16.576 and 16.577. The retirement benefit
provided by this section shall be known as the hybrid cash balance plan and shall operate as another benefit
tier within the State Police Retirement System and the Kentucky Employees Retirement System.
(2) The hybrid cash balance plan shall provide a retirement benefit based upon the member's accumulated account
balance, which shall include:
(a) Contributions made by the member as provided by KRS 16.505 to 16.652 and 61.510 to 61.705, except
for employee contributions prescribed by KRS 61.702(3)(b);
(b) 1. An employer pay credit of seven and one-half percent (7.5%) of the creditable compensation
earned by the employee for each month the employee is contributing to the hybrid cash balance
plan provided by this section; and
2. For members of the State Police Retirement System covered by this section, an employer pay
credit for the value of accumulated sick leave as determined and limited by Section 3 of this
Act; and
(c) Interest credits added annually to the member's accumulated account balance as provided by this
section.
(3) (a) Member contributions and employer pay credits as provided by subsection (2)(a) and (b)1. of this
section shall be credited to the member's account monthly as contributions are reported and posted to
the system in accordance with KRS 61.675.
(b) Interest credits, as provided by subsection (2)(c) of this section, shall be credited to the member's
account annually on June 30 of each fiscal year, as determined by subsection (4) of this section.
(c) Employer pay credits for accumulated sick leave shall be credited to the member's account as
determined by Section 3 of this Act.
(4) (a) On June 30 of each fiscal year, the system shall determine if the member contributed to the hybrid cash
balance plan during the fiscal year.
(b) If the member contributed to the hybrid cash balance plan during the fiscal year, the interest credit
added to the member's account for that fiscal year shall be determined by multiplying the member's
accumulated account balance on June 30 of the preceding fiscal year by a percentage increase equal to:
1. Four percent (4%); plus
2. Seventy-five percent (75%) of the system's geometric average net investment return in excess of
a four percent (4%) rate of return.
(c) If the member did not contribute to the hybrid cash balance plan during the fiscal year, the interest
credit added to the member's account for that fiscal year shall be determined by multiplying the
member's accumulated account balance on June 30 of the preceding fiscal year by four percent (4%).
(d) For purposes of this subsection, "system's geometric average net investment return":
1. Means the annual average geometric investment return, net of administrative and investment fees
and expenses, over the last five (5) fiscal years as of the date the interest is credited to the
member's account; and
2. Shall be expressed as a percentage and based upon the system in which the member has an
account. CHAPTER 181
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(e) No employer pay credits or interest credits shall be provided to a member who has taken a refund of
contributions as provided by KRS 61.625 or who has retired and annuitized his or her accumulated
account balance as prescribed by this section.
(5) (a) Upon termination of employment, a member who has less than five (5) years of service credited under
KRS 16.543(1), 61.543(1), and 78.615(1), who elects to take a refund of his or her accumulated account
balance as provided by KRS 61.625, shall forfeit the accumulated employer credit, and shall only
receive a refund of his or her accumulated contributions.
(b) Upon termination of employment, a member who has five (5) or more years of service credited under
KRS 16.543(1), 61.543(1), and 78.615(1), who elects to take a refund of his or her accumulated account
balance as provided by KRS 61.625, shall receive a full refund of his or her accumulated account
balance.
(6) A member participating in the hybrid cash balance plan provided by this section may retire:
(a) At his or her normal retirement date, provided he or she has earned five (5) or more years of service
credited under KRS 16.543(1), 61.543(1), or 78.615(1), or another state-administered retirement
system; or
(b) At any age, provided he or she has earned twenty-five (25) or more years of service credited under KRS
16.543(1), 61.543(1), or 78.615(1), or another state-administered retirement system.
(7) A member eligible to retire under subsection (6) of this section may elect to:
(a) Receive a monthly retirement allowance payable for life by having his or her accumulated account
balance annuitized by the retirement systems in accordance with the actuarial assumptions and actuarial
methods adopted by the board and in effect on the member's retirement date;
(b) Receive the actuarial equivalent of his or her retirement allowance calculated under paragraph (a) of
this subsection payable under one (1) of the options set forth in KRS 61.635, except for the option
provided by KRS 61.635(11); or
(c) Take a refund of his or her account balance as provided by KRS 61.625.
(8) The provisions of this section shall not apply to members who began participating in the Kentucky Employees
Retirement System, the County Employees Retirement System, or the State Police Retirement System prior to
January 1, 2014, except for those members who make an election pursuant to KRS 61.5955.
SECTION 3. A NEW SECTION OF KRS 16.505 TO 16.652 IS CREATED TO READ AS FOLLOWS:
(1) Subject to the limitations and requirements provided by this section, the following shall apply to members of
the State Police Retirement System who are eligible for benefits from the hybrid cash balance plan
established by Section 2 of this Act:
(a) Within thirty (30) days following the close of each fiscal year ending on or after June 30, 2023,
members participating in the State Police Retirement System in the hybrid cash balance plan who
have five (5) or more years of service credited under KRS 16.543(1), 61.543(1), and 78.615(1), shall
receive an employer pay credit under subsection (2)(b)2. of Section 2 of this Act equal to an amount
determined by multiplying the member's hours of accumulated sick leave in excess of four hundred
eighty (480) hours as of the most recently completed fiscal year by the member's hourly base pay
determined under Section 1 of this Act, including any annual adjustments provided by subsection (6)
of Section 1 of this Act. The member's hourly base pay shall not include any payments for overtime
or any salary supplement received from the Law Enforcement Foundation Program established
pursuant to KRS 15.410 to 15.510; and
(b) Effective July 1, 2023, members with an account in the hybrid cash balance plan who retire from the
State Police Retirement System shall receive an employer pay credit under subsection (2)(b)2. of
Section 2 of this Act equal to an amount determined by multiplying the member's hours of
accumulated sick leave upon termination of employment by the member's hourly base pay
determined under Section 1 of this Act, including any annual adjustments provided by subsection (6)
of Section 1 of this Act. The member's hourly base pay shall not include any payments for overtime
or any salary supplement received from the Law Enforcement Foundation Program established
pursuant to KRS 15.410 to 15.510. ACTS OF THE GENERAL ASSEMBLY 6
(2) The Department of Kentucky State Police shall report the information required by the Kentucky Public
Pensions Authority to carry out the provisions of this section and shall reduce the member's accumulated
sick leave by the amount of sick leave converted to an employer pay credit pursuant to this section.
(3) The provisions of subsection (2)(b)2. of Section 2 of this Act and this section are subject to funding for the
benefit in the executive branch budget. In the event funding for this additional employer credit is not
provided in the executive branch budget, no employer credits for accumulated sick leave shall be provided
during the period the budget is effective.
Section 4. KRS 7A.255 is amended to read as follows:
(1) Notwithstanding KRS 21.345 to 21.580, 61.661, 61.870 to 61.884, or 161.585 to the contrary, on or before
November 15 following the close of each fiscal year, the state-administered retirement systems shall
collectively file a report with the Public Pension Oversight Board that shall include the following information
for each member or recipient of a retirement allowance from any of the state-administered retirement systems:
(a) A unique identification number for each member or recipient that is created solely for purposes of
compiling the report provided by this section and which shall not be the member's Social Security
number or personal identification number issued by the systems. For individual members or recipients
with multiple accounts in the state-administered retirement systems, all of the state-administered
retirement systems shall use the same unique identification number;
(b) The system or systems in which the member has an account or from which the retired member is
receiving a monthly retirement allowance;
(c) The status of the member or recipient, including but not limited to whether he or she is a contributing
member, a member who is not currently contributing to the systems but has not retired, a retired
member, a beneficiary, or a retired member who has returned to work following retirement with an
agency participating in the systems;
(d) If the individual is a retired member or beneficiary, the annualized monthly retirement allowance that
he or she was receiving at the end of the most recently completed fiscal year; and
(e) If the individual is a member who has not yet retired, the estimated annual retirement allowance that he
or she is eligible to receive at his or her normal retirement date based upon his or her service credit,
final compensation, and accumulated account balance at the end of the most recently completed fiscal
year.
Under no circumstances shall the member's name, address, or Social Security number be included in the
information required to be reported to the board by this section, nor shall the unique identification number
established by subsection (1) of this section be capable of being linked to a specific member's retirement
account with a state-administered retirement system.
(2) On or before November 15 following the close of each fiscal year, the state-administered retirement systems
shall report to the Public Pension Oversight Board the percentage of system assets and managers for which
fees and commissions are being reported in accordance with KRS 21.540(4)(m), 61.645(19)(i), and
161.250(4)(i). This subsection shall apply on a fiscal year basis beginning on or after July 1, 2017.
(3) On or before November 15, 2017, the state-administered retirement systems shall tender to the Public Pension
Oversight Board a copy of their board-adopted investment procurement policy along with certification from
the secretary of the Finance and Administration Cabinet that the investment procurement policy meets or does
not meet the best practices for investment management procurement. If the board amends its investment
procurement policy, it shall tender a copy of its amended investment procurement policy to the Public Pension
Oversight Board within sixty (60) days of adoption along with certification from the secretary of the Finance
and Administration Cabinet that the policy meets or does not meet the best practices for investment
management procurement.
(4) On or before November 15 following the close of each fiscal year, the Kentucky Public Pensions Authority
shall report to the Public Pension[Pensions] Oversight Board the number of individuals and total payments to
members who become totally and permanently disabled as a direct result of an act in line of duty as defined in
KRS 16.505 or become disabled as a result of a duty-related injury as defined in KRS 61.621. The data shall
be broken down by system and for recipients who are drawing a benefit from the disablement of a hazardous
member, a nonhazardous member who worked in a nonhazardous position that could be certified as a
hazardous position based upon KRS 61.592, and a nonhazardous member who worked in a nonhazardous
position that could not be certified as a hazardous position based upon KRS 61.592. CHAPTER 181
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(5) On or before November 15, 2023, and on or before November 15th every fourth year thereafter, the
Department of State Police and the Kentucky Public Pensions Authority shall jointly report to the Public
Pension Oversight Board on the costs and effectiveness of the program established by subsection (2)(b)2. of
Section 2 of this Act and Section 3 of this Act.
Section 5. KRS 16.080 is amended to read as follows:
(1) The commissioner shall promulgate administrative regulations for the enlistment, training, code of ethics,
discipline, and conduct of officers of the department and individuals employed as a Trooper R Class or CVE R
Class, and the commissioner may promulgate administrative regulations for the governing and operation of the
department as appear to him or her reasonably necessary to carry out the provisions of KRS 16.010 to 16.170.
(2) The commissioner may require any officer, individual employed as a Trooper R Class or CVE R Class, or
civilian who receives or disburses public funds in the course of his or her duties to file a bond, conditioned that
he or she will honestly, correctly, and according to law, receive, disburse, and account for all public moneys
coming into his or her hands. The commissioner, each officer, and each individual employed as a Trooper R
Class or CVE R Class, shall execute a bond to the Commonwealth of Kentucky in the sum of not less than two
thousand dollars ($2,000), conditioned upon the faithful discharge of his or her duties. The premium on the
bonds shall be paid by the department. The commissioner, each officer of the department, and each individual
employed as a Trooper R Class or CVE R Class shall, before entering upon the discharge of their official
duties, take the constitutional oath of office.
(3) Subject to the provisions of KRS 56.440 to 56.550, the commissioner, with the approval of the Governor and
the secretary of the Finance and Administration Cabinet, may acquire real estate or interests therein, by
purchase, lease, or otherwise, necessary for the purposes of the department, and, with like approval, provide
for the acquisition or construction of necessary buildings and other permanent structures and facilities. Title to
any real estate acquired shall be taken in the name of the Commonwealth.
(4) Subject to the provisions of Sections 2 and 3 of this Act, the commissioner shall direct the department to
reduce sick leave balances of officers subject to the provisions of Sections 2 and 3 of this Act by the amount
of sick leave credited to the hybrid cash balance plan for State Police Retirement System members under
Sections 2 and 3 of this Act.
Section 6. KRS 16.565 is amended to read as follows:
The retirement allowance account shall be the account in which shall be accumulated all employer contributions,
amounts transferred from the member account, and to which all income from the investment assets of the system
shall be credited. From this account there shall be paid administrative expenses and in addition all benefits payable
under KRS 16.510 to 16.652. There shall be transferred from this account to the member account:
(1) The employer pay credit added monthly to each member's individual accounts as provided by subsection
(2)(b)1. of Section 2 of this Act or annually as provided by subsection (2)(b)2. of Section 2 of this Act and
Section 3 of this Act[KRS 16.583]; and
(2) The interest credited annually to each member's individual accounts as provided by KRS 16.505 to 16.652.
Section 7. KRS 18A.110 is amended to read as follows:
(1) The secretary shall promulgate comprehensive administrative regulations for the classified service governing:
(a) Applications and examinations;
(b) Certification and selection of eligibles;
(c) Classification and compensation plans;
(d) Incentive programs;
(e) Lay-offs;
(f) Registers;
(g) Types of appointments;
(h) Attendance; hours of work; compensatory time; annual, court, military, sick, voting, living organ donor,
and special leaves of absence, provided that the secretary shall not promulgate administrative ACTS OF THE GENERAL ASSEMBLY 8
regulations that would reduce the rate at which employees may accumulate leave time below the rate
effective on December 10, 1985; and
(i) Employee evaluations.
(2) The secretary shall promulgate comprehensive administrative regulations for the unclassified service.
(3) (a) Except as provided by KRS 18A.355, the secretary shall not promulgate administrative regulations that
would reduce an employee's salary; and
(b) As provided by KRS 18A.0751(4)(e), the secretary may submit a proposed administrative regulation
providing for an initial probationary period in excess of six (6) months to the board for its approval.
(4) The secretary may promulgate administrative regulations to implement state government's affirmative action
plan under KRS 18A.138.
(5) (a) The administrative regulations shall comply with the provisions of this chapter and KRS Chapter 13A,
and shall have the force and effect of law after compliance with the provisions of KRS Chapters 13A
and 18A and the procedures adopted thereunder;
(b) Administrative regulations promulgated by the secretary shall not expand or restrict rights granted to, or
duties imposed upon, employees and administrative bodies by the provisions of this chapter; and
(c) No administrative body other than the Personnel Cabinet shall promulgate administrative regulations
governing the subject matters specified in this section.
(6) Prior to filing an administrative regulation with the Legislative Research Commission, the secretary shall
submit the administrative regulation to the board for review.
(a) The board shall review the administrative regulation proposed by the secretary not less than twenty (20)
days after its submission to it;
(b) Not less than five (5) days after its review, the board shall submit its recommendations in writing to the
secretary;
(c) The secretary shall review the recommendations of the board and may revise the proposed
administrative regulation if he deems it necessary; and
(d) After the secretary has completed the review provided for in this section, he may file the proposed
administrative regulation with the Legislative Research Commission pursuant to the provisions of KRS
Chapter 13A.
(7) The administrative regulations shall provide:
(a) For the preparation, maintenance, and revision of a position classification plan for all positions in the
classified service, based upon similarity of duties performed and responsibilities assumed, so that the
same qualifications may reasonably be required for, and the same schedule of pay may be equitably
applied to, all positions in the same class. The secretary shall allocate the position of every employee in
the classified service to one (1) of the classes in the plan. The secretary shall reallocate existing
positions, after consultation with appointing authorities, when it is determined that they are incorrectly
allocated, and there has been no substantial change in duties from those in effect when such positions
were last classified. The occupant of a position being reallocated shall continue to serve in the
reallocated position with no reduction in salary;
(b) For a pay plan for all employees in the classified service, after consultation with appointing authorities
and the state budget director. The plan shall take into account such factors as:
1. The relative levels of duties and responsibilities of various classes of positions;
2. Rates paid for comparable positions elsewhere taking into consideration the effect of seniority on
such rates; and
3. The state's financial resources.
Amendments to the pay plan shall be made in the same manner. Each employee shall be paid at one (1)
of the rates set forth in the pay plan for the class of position in which he is employed, provided that the
full amount of the annual increment provided for by the provisions of KRS 18A.355, and the full
amount of an increment due to a promotion, salary adjustment, reclassification, or reallocation, shall be
added to an employee's base salary or wages; CHAPTER 181
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(c) For open competitive examinations to test the relative fitness of applicants for the respective positions.
The examinations shall be announced publicly and applications accepted at least ten (10) days prior to
certification of a register, and may be advertised through the press, radio, and other media. The
secretary shall continue to receive applications and examine candidates on a continuous basis long
enough to assure a sufficient number of eligibles to meet the needs of the service. Except as provided by
this chapter, he shall add the names of successful candidates to existing eligible lists in accordance with
their respective ratings. The secretary shall be free to use any investigation of education and experience
and any test of capacity, knowledge, manual skill, character, personal traits, or physical fitness, which
in his judgment, serves the need to discover the relative fitness of applicants;
(d) As provided by this chapter, for the establishment of eligible lists for appointment, upon which lists
shall be placed the names of successful candidates in the order of their relative excellence in the
respective examinations. Except as provided by this chapter, an eligible's score shall expire
automatically one (1) year from the date of testing, unless the life of the score is extended by action of
the secretary for a period not to exceed one (1) additional year. Except for those individuals exercising
reemployment rights, all eligibles may be removed from the register when a new examination is
established;
(e) For the rejection of candidates or eligibles who fail to comply with reasonable requirements of the
secretary in regard to such factors as age, physical condition, training, and experience, or who have
attempted any deception or fraud in connection with an examination;
(f) Except as provided by this chapter, for the appointment of a person whose score is included in the five
(5) highest scores earned on the examination;
(g) For annual, sick, and special leaves of absence, with or without pay, or reduced pay, after approval by
the Governor as provided by KRS 18A.155(1)(d);
(h) For lay-offs, in accordance with the provisions of KRS 18A.113, 18A.1131, and 18A.1132, by reasons
of lack of work, abolishment of a position, a material change in duties or organization, or a lack of
funds;
(i) For the development and operation of programs to improve the work effectiveness of employees in the
state service, including training, whether in-service or compensated educational leave, safety, health,
welfare, counseling, recreation, employee relations, and employee mobility without written
examination;
(j) For a uniform system of annual employee evaluation for classified employees, with status, that shall be
considered in determining eligibility for discretionary salary advancements, promotions, and
disciplinary actions. The administrative regulations shall:
1. Require the secretary to determine the appropriate number of job categories to be evaluated and a
method for rating each category;
2. Provide for periodic informal reviews during the evaluation period which shall be documented
on the evaluation form and pertinent comments by either the employee or supervisor may be
included;
3. Establish a procedure for internal dispute resolution with respect to the final evaluation rating;
4. Permit a classified employee, with status, who receives either of the two (2) lowest possible
evaluation ratings to appeal to the Personnel Board for review after exhausting the internal
dispute resolution procedure. The final evaluation shall not include supervisor comments on
ratings other than the lowest two (2) ratings;
5. Require that an employee who receives the highest possible rating shall receive the equivalent of
two (2) workdays, not to exceed sixteen (16) hours, credited to his or her annual leave balance.
An employee who receives the second highest possible rating shall receive the equivalent of one
(1) workday, not to exceed eight (8) hours, credited to his or her annual leave balance; and
6. Require that an employee who receives the lowest possible evaluation rating shall either be
demoted to a position commensurate with the employee's skills and abilities or be terminated;
and ACTS OF THE GENERAL ASSEMBLY 10
(k) For other administrative regulations not inconsistent with this chapter and KRS Chapter 13A, as may be
proper and necessary for its enforcement.
(8) For any individual hired or elected to office before January 1, 2015, and paid through the Kentucky Human
Resources Information System, the Personnel Cabinet shall not require payroll payments to be made by direct
deposit or require the individual to use a Web-based program to access his or her salary statement.
(9) To the extent that Sections 3 and 5 of this Act, KRS 16.010 to 16.199, and administrative regulations
promulgated by the commissioner of the Department of Kentucky State Police under authority granted in KRS
Chapter 16 conflict with this section or any administrative regulation promulgated by the secretary pursuant to
authority granted in this section, the provisions of KRS Chapter 16 shall prevail.
Section 8. KRS 61.565 is amended to read as follows:
(1) (a) Each employer participating in the State Police Retirement System as provided for in KRS 16.505 to
16.652 and the Kentucky Employees Retirement System as provided for in KRS 61.510 to 61.705 shall
contribute annually to the respective retirement system an amount determined by the actuarial valuation
completed in accordance with KRS 61.670 and as specified by this section. Employer contributions for
each respective retirement system shall be equal to the sum of the "normal cost contribution" and the
"actuarially accrued liability contribution."
(b) For purposes of this section, the normal cost contribution shall be computed as a percentage of pay and
shall be an annual amount that is sufficient when combined with employee contributions to fund
benefits earned during the year in the respective system. The amount shall be:
1. Paid as a percentage of creditable compensation reported for each employee participating in the
system and accruing benefits; and
2. The same percentage of pay for all employees who are participating in the same retirement
system, except that separate percentage rates shall be developed in each system for those
employers whose employees are participating in hazardous duty retirement coverage as provided
by KRS 61.592.
(c) For purposes of this section, the actuarially accrued liability contribution for all employers, except for
contributions paid by nonhazardous employers in the Kentucky Employees Retirement System on or
after July 1, 2021, shall be:
1. Computed by amortizing the total unfunded actuarially accrued liability of each system over a
closed period of thirty (30) years beginning with the 2019 actuarial valuation using the level
percentage of payroll amortization method, except that any increase or decrease in the unfunded
actuarially accrued liability occurring after the completion of the 2019 actuarial valuation shall
be amortized over a closed period of twenty (20) years beginning with the actuarial valuation in
which the increase or decrease in the unfunded actuarially accrued liability is recognized. An
increase or decrease in the unfunded actuarially accrued liability may result from, but not be
limited to, legislative changes to benefits, changes in actuarial methods or assumptions, or
actuarial gains or losses;
2. Paid as a percentage of payroll on the creditable compensation reported for each employee
participating in the system and accruing benefits; and
3. The same percentage of pay for all employees who are participating in the same retirement
system, except that separate percentage rates shall be developed in each system for those
employers whose employees are participating in hazardous duty retirement coverage as provided
by KRS 61.592.
(d) 1. For purposes of this section, the actuarially accrued liability contribution for nonhazardous
employers in the Kentucky Employees Retirement System on or after July 1, 2021:
a. Shall be an annual dollar amount that is sufficient to amortize the total unfunded
actuarially accrued liability of the system over a closed period of thirty (30) years
beginning with the 2019 actuarial valuation using the level percentage of payroll
amortization method, except that any increase or decrease in the unfunded actuarially
accrued liability occurring after the completion of the 2019 actuarial valuation shall be
amortized over a closed period of twenty (20) years beginning with the actuarial valuation
in which the increase or decrease in the unfunded actuarially accrued liability is CHAPTER 181
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recognized. An increase or decrease in the unfunded actuarially accrued liability may
result from but not be limited to legislative changes to benefits, changes in actuarial
methods or assumptions, or actuarial gains or losses;
b. Shall be prorated to each individual nonhazardous employer in the Kentucky Employees
Retirement System by multiplying the annual dollar amount of the actuarially accrued
liability contribution for the system as determined by subdivision a. of this subparagraph
by the individual employer's percentage of the system's total actuarially accrued liability
as of the June 30, 2019, actuarial valuation which shall be determined solely by the
system's consulting actuary and assigned to each employer based upon the last
participating employer of the member or retiree as of June 30, 2019. The individual
employer's percentage of the system's total actuarially accrued liability as of the June 30,
2019, actuarial valuation shall be used to determine the individual employer's prorated
dollar amount of the system's actuarially accrued liability contribution in all future fiscal
years of the amortization period or periods, except that the employer's percentage shall be
adjusted to reflect any employer who voluntarily or involuntarily ceases participation as
provided by KRS 61.522 and except as provided by subparagraphs 4. and 5. of this
paragraph. For purposes of this subdivision, all executive branch departments, program
cabinets and their respective departments, and administrative bodies enumerated in KRS
12.020, and any other executive branch agencies administratively attached to a
department, program cabinet, or administrative body enumerated in KRS 12.020, shall be
considered a single individual employer and only one (1) value shall be computed for
these executive branch employers. For purposes of this subdivision, all employers of the
legislative branch, including the Legislative Research Commission and the General
Assembly that covers legislators and staff who participate in the Kentucky Employees
Retirement System, shall be considered a single individual employer and only one (1)
value shall be computed for these employers. For purposes of this subdivision, all
employers of the judicial branch, including the Administrative Office of the Courts, the
Judicial Form Retirement System, and all master commissioners, shall be considered a
single individual employer and only one (1) value shall be computed for these employers;
c. Shall be payable by an individual employer in equal monthly dollar installments during
the fiscal year in accordance with the reporting requirements specified by KRS 61.675 so
that the individual employer pays its full prorated dollar amount of the actuarially accrued
liability contribution as determined by subdivision b. of this subparagraph; and
d. Notwithstanding subdivision b. of this subparagraph for those individual participating
employers who are local and district health departments governed by KRS Chapter 212,
community mental health centers, and employers whose employees are not subject to
KRS 18A.005 to 18A.200, who received or were eligible to receive a distribution of
general fund appropriations in the 2018-2020 biennial executive branch budget to assist in
paying retirement costs under 2018 Ky. Acts ch. 169, Part I, G., 4., (5); 2018 Ky. Acts ch.
169, Part I, G., 5., (2); or 2018 Ky. Acts ch. 169, Part I, G., 9., (2), shall not, once the
initial dollar amounts are established in accordance with this paragraph, be adjusted in
terms of dollars paid by the individual employer, except that adjustments shall be made by
the system upon completion of an actuarial investigation as provided by KRS 61.670, so
long as at least four (4) years have passed since the last adjustment to the actuarially
accrued liability contribution for these employers. The provisions of this subdivision shall
not be interpreted to mean that employers described by this subdivision may continue
paying the dollar value of contributions or employer contribution rates established or paid
by the employer in budget periods occurring prior to July 1, 2021.
2. Individual employers, solely for purposes of collecting employer contributions from various fund
sources during the fiscal year, may convert the actuarially accrued liability contribution
established by this paragraph to a percentage of pay and may adjust the percent of pay during the
fiscal year in order to pay the required dollar value of actuarially accrued liability contribution
required by this paragraph. No provision of this subparagraph shall be construed to reduce an
individual employer's actuarially accrued liability contribution as otherwise provided by this
paragraph. ACTS OF THE GENERAL ASSEMBLY 12
3. The provisions of this paragraph shall not apply to those employers who cease participation as
provided by KRS 61.522.
4. In the event an individual Kentucky Employees Retirement System nonhazardous employer who
is required to pay an actuarially accrued liability contribution as provided by this paragraph and
as calculated from the 2019 actuarial valuation or subsequent valuations, merges with another
employer or entity, forms a new or separate employer or entity, or splits or separates operations
into multiple employers or entities, the system shall, except for those employers or entities who
pay the costs to cease participation as provided by KRS 61.522, have full authority to assign a
portion or all of the total actuarially accrued liability contribution to the merged, new, split, or
separate employers or entities, regardless of whether or not the merged, new, split, or separate
employers or entities participate in the system. In the case of a district health department
established pursuant to KRS Chapter 212, which ceases to operate or which has a county or
counties that withdraw from the district health department, the systems shall assign the total
actuarially accrued liability contribution based upon the proportion of taxable property of each
county as certified by the Department for Public Health in the Cabinet for Health and Family
Services in accordance with KRS 212.132. The system shall establish by administrative
regulations the process of assigning actuarially accrued liability contributions as authorized by
this subparagraph.
5. a. An employer who is not in the executive, legislative, or judicial branch of Kentucky state
government as enumerated in subparagraph 1.b. of this paragraph may on or before July 1,
2021, appeal to the board regarding any current or former employees or retirees the
employer believes should not be used to determine the employer's percentage of the
system's total actuarially accrued liability. The only appeals that shall be submitted by the
employer or considered by the board shall be potential errors where the last participating
employer is in dispute, situations where employees of the employer were hired through a
contract between the executive branch and the employer for the employee to provide
services to the executive branch, or situations where a community mental health center
was contracted to provide services at a facility previously operated by the executive
branch. The employer shall submit the information required by the board to verify
potential errors or contract employees with employers.
b. The board shall review and issue a final determination regarding any appeals by
December 31, 2021. In situations where the board determines the last participating
employer was incorrect and should be assigned to another employer, the system shall,
effective for employer contributions payable on or after July 1, 2022, assign the cost to the
executive branch until such time ownership of the liability can be determined and
assigned to the correct employer. In situations where the board determines certain
employees of employers were hired through a contract between the executive branch and
the employer for an employee or employees to provide services to the executive branch,
those liabilities shall, effective for employer contributions payable on or after July 1,
2022, be assigned to the executive branch. In situations where the board determines the
community mental health center was contracted to provide services at a facility previously
operated by the executive branch, the liabilities for employees providing services at that
facility shall be assigned to the executive branch.
c. No appeal shall be submitted by the employer or considered by the board regarding the
assumptions or methodology used by the actuary to determine a particular employer's
percentage of the system's total actuarially accrued liability or the use of the last
participating employer to assign liabilities to an employer, except as otherwise provided
by this subparagraph.
d. The board shall within thirty (30) days following the final determinations submit to the
Public Pension Oversight Board the list of appeals that were approved, the number of
employees involved, and any costs that will be transferred to the executive branch
effective July 1, 2022.
(e) The employer contributions computed under this section shall be determined using:
1. The entry age normal cost funding method; CHAPTER 181
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2. An asset smoothing method that smooths investment gains and losses over a five (5) year period;
and
3. Other funding methods and assumptions established by the board in accordance with KRS
61.670.
(2) (a) Except as limited by subsection (1)(d)1.d. of this section as it relates to the Kentucky Employees
Retirement System, normal cost contribution rates and the actuarially accrued liability contribution shall
be determined by the board on the basis of the annual actuarial valuation last preceding the July 1 of a
new biennium.
(b) The board shall not have the authority to amend contribution rates as of July 1 of the second year of the
biennium for the Kentucky Employees Retirement System and the State Police Retirement System.
(3) (a) The system shall advise each employer prior to July 1 of any change in the employer contribution rate.
(b) Costs for the benefits provided under subsection (2)(b)2. of Section 2 of this Act and Section 3 of this
Act shall be included in the employer contribution rate payable to the State Police Retirement System
but shall be reported as a separate line item in the actuarial valuation for purposes of Section 3 of
this Act and in any correspondence to the Department of Kentucky State Police, the state budget
director, and the Legislative Research Commission regarding employer costs for the State Police
Retirement System.
(c) Based on the employer contribution rate, each employer shall include in the budget sufficient funds to
pay the employer contributions as determined by the board under this section.
(4) All employers, including the General Assembly, shall pay the full actuarially required contributions, as
prescribed by this section, to the Kentucky Employees Retirement System and the State Police Retirement
System in fiscal years occurring on or after July 1, 2020, except as authorized for the program established by
subsection (2)(b)2. of Section 2 of this Act and Section 3 of this Act.
Section 9. KRS 61.592 is amended to read as follows:
(1) (a) "Hazardous position" for employees participating in the Kentucky Employees Retirement System
means:
1. Any position whose principal duties involve active law enforcement, including the positions of
probation and parole officer and Commonwealth detective, active fire suppression or prevention,
or other positions, including but not limited to pilots of the Transportation Cabinet and
paramedics and emergency medical technicians, with duties that require frequent exposure to a
high degree of danger or peril and also require a high degree of physical conditioning;
2. Positions in the Department of Corrections in state correctional institutions and the Kentucky
Correctional Psychiatric Center with duties that regularly and routinely require face-to-face
contact with inmates; and
3. Positions of employees who elect coverage under KRS 196.167(3)(b)2. and who continue to
provide educational services and support to inmates as a Department of Corrections employee.
(b) The effective date of participation under hazardous duty coverage for positions in the Department of
Alcoholic Beverage Control shall be April 1, 1998. The employer and employee contributions shall be
paid by the employer and forwarded to the retirement system for the period not previously reported.
(2) Each employer may request of the board hazardous duty coverage for those positions as defined in subsection
(1) of this section. Upon request, each employer shall certify to the system, in the manner prescribed by the
board, the names of all employees working in a hazardous position as defined in subsection (1) of this section
for which coverage is requested. The certification of the employer shall bear the approval of the agent or
agency responsible for the budget of the department or county indicating that the required employer
contributions have been provided for in the budget of the employing department or county. The system shall
determine whether the employees whose names have been certified by the employer are working in positions
meeting the definition of a hazardous position as provided by subsection (1) of this section. This process shall
not be required for employees who elect coverage under KRS 196.167(3)(b)2.
(3) (a) An employee who elects coverage under KRS 196.167(3)(b)2., and an employee participating in the
Kentucky Employees Retirement System who is determined by the system to be working in a hazardous ACTS OF THE GENERAL ASSEMBLY 14
position in accordance with subsection (2) of this section, shall contribute, for each pay period for
which he or she receives compensation, eight percent (8%) of his or her creditable compensation.
(b) Each employer shall pay employer contributions based on the creditable compensation of the employees
determined by the system to be working in a hazardous position at the employer contribution rate as
determined by the board. The rate shall be determined by actuarial methods consistent with the
provisions of KRS 61.565.
(c) If the employer participated in the system prior to electing hazardous duty coverage, the employer may
pay to the system the cost of converting the nonhazardous service to hazardous service from the date of
participation to the date the payment is made, or the employer may establish a payment schedule for
payment of the cost of the hazardous service above that which would be funded within the existing
employer contribution rate. The employer may extend the payment schedule to a maximum of thirty
(30) years. Payments made by the employer under this subsection shall be deposited to the retirement
allowance account of the proper retirement system and these funds shall not be considered accumulated
contributions of the individual members. If the employer elects not to make the additional payment, the
employee may pay the cost of converting the service and provide payment for the cost as provided by
KRS 61.552(9). Payments made by the employee under this subsection shall not be picked up, as
described in KRS 61.560(4), by the employer. If neither the employer nor employee makes the
payment, the service prior to hazardous coverage shall remain nonhazardous. The provisions of this
paragraph shall not apply to members who begin participating in the systems administered by Kentucky
Retirement Systems on or after January 1, 2014.
(4) The normal retirement age, retirement allowance, hybrid cash balance plans except as provided by subsection
(2)(b)2. of Section 2 of this Act and Section 3 of this Act, other benefits, eligibility requirements, rights, and
responsibilities of a member in a hazardous position, as prescribed by subsections (1), (2), and (3) of this
section, and the responsibilities, rights, and requirements of his or her employer shall be as prescribed for a
member and employer participating in the State Police Retirement System as provided for by KRS 16.505 to
16.652.
(5) Any person employed in a hazardous position after July 1, 1972, shall be required to undergo a thorough
medical examination by a licensed physician, and a copy of the medical report of the physician shall be
retained on file by the employee's department or county and made available to the system upon request.
(6) If doubt exists regarding the benefits payable to a hazardous position employee under this section, the board
shall determine the benefits payable under KRS 61.510 to 61.705 or 16.505 to 16.652.
Section 10. In the event that budgeted funds in fiscal year 2023-2024 of the executive branch budget are
insufficient to fund the program established by subsection (2)(b)2. of Section 2 of this Act and Section 3 of this Act
for that fiscal year, the program shall, notwithstanding any provision of Section 3 to the contrary, still be provided in
fiscal year 2023-2024 and any additional funding needed for the benefits provided in fiscal year 2023-2024 shall be
included in the employer contribution rates payable for fiscal years occurring on or after July 1, 2024.
Section 11. Whereas it is critical to ensure that Kentucky State Police are able to attract and retain highly
qualified peace officers, an emergency is declared to exist, and Section 1 of this Act takes effect on July 1, 2022.
Section 12. Sections 2 to 10 of this Act take effect on April 1, 2023.
Signed by Governor April 8, 2022.