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AN ACT relating to retiree health provisions of the County Employees Retirement 1
System. 2
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 3
Section 1. KRS 78.5536 is amended to read as follows: 4
(1) For purposes of this section: 5
(a) "Hospital and medical insurance plan" may include, at the board's discretion, 6
any one (1) or more of the following: 7
1. Any hospital and medical expense policy or certificate, provider-8
sponsored integrated health delivery network, self-insured medical plan, 9
health maintenance organization contract, or other health benefit plan; 10
2. Any health savings account as permitted by 26 U.S.C. sec. 223 or health 11
reimbursement arrangement or a similar account as may be permitted by 12
26 U.S.C. sec. 105 or 106. Such arrangement or account, at the board's 13
discretion, may reimburse any medical expense permissible under 26 14
U.S.C. sec. 213; or 15
3. A medical insurance reimbursement program established by the board 16
through the promulgation of administrative regulation under which 17
members purchase individual health insurance coverage through a health 18
insurance exchange established under 42 U.S.C. sec. 18031 or 18041; 19
(b) "Monthly contribution rate" shall be the amount determined by the board 20
based upon the requirements of subsection (4)(a) to (d) of this section, except 21
that for members who began participating in the system on or after July 1, 22
2003, the term shall mean the amount determined in subsection (4)(e) of this 23
section; and 24
(c) "Months of service" shall mean the total months of combined service used to 25
determine benefits under the system, except service added to determine 26
disability benefits or service otherwise prohibited from being used to 27 UNOFFICIAL COPY 25 RS BR 229
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determine retiree health benefits under KRS 78.510 to 78.852 shall not be 1
counted as "months of service." 2
(2) (a) 1. The board of trustees of the system shall arrange by appropriate contract 3
or on a self-insured basis to provide a group hospital and medical 4
insurance plan coverage for: 5
a. Present and future recipients of a retirement allowance from the 6
County Employees Retirement System; and 7
b. The spouse and each qualified dependent of a recipient who is a 8
former member or the beneficiary, provided the spouse and 9
dependent meet the requirements to participate in the hospital and 10
medical insurance plans established, contracted, or authorized by 11
the system. 12
2. Any recipient who chooses coverage under a hospital and medical 13
insurance plan shall pay, by payroll deduction from the retirement 14
allowance, electronic funds transfer, or by another method, the 15
difference between the premium cost of the hospital and medical 16
insurance plan coverage selected and the monthly contribution rate to 17
which he or she would be entitled under this section. 18
(b) 1. For present and future recipients of a retirement allowance from the 19
system who are not eligible for Medicare and for those recipients 20
described in subparagraph 3.b. of this paragraph, the board may 21
authorize these participants to be included in the Kentucky Employees 22
Health Plan as provided by KRS 18A.225 to 18A.2287 and shall provide 23
benefits for recipients in the plan equal to those provided to state 24
employees having the same Medicare hospital and medical insurance 25
eligibility status. Notwithstanding the provisions of any other statute 26
except subparagraph 3.b. of this paragraph, system recipients shall be 27 UNOFFICIAL COPY 25 RS BR 229
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included in the same class as current state employees for purposes of 1
determining medical insurance policies and premiums in the Kentucky 2
Employees Health Plan as provided by KRS 18A.225 to 18A.2287. 3
2. Regardless of age, if a recipient or the spouse or dependent child of a 4
recipient who elects coverage becomes eligible for Medicare, he or she 5
shall participate in the plans offered by the systems for Medicare 6
eligible recipients. Individuals participating in the Medicare eligible 7
plans may be required to obtain and pay for Medicare Part A and Part B 8
coverage in order to participate in the Medicare eligible plans offered by 9
the system. 10
3. The system shall continue to provide the same hospital and medical 11
insurance plan coverage for recipients and qualifying dependents after 12
the age of sixty-five (65) as before the age of sixty-five (65), if: 13
a. The recipient is not eligible for Medicare coverage; or 14
b. The recipient would otherwise be eligible for Medicare coverage 15
but is subject to the Medicare Secondary Payer Act under 42 16
U.S.C. sec. 1395y(b) and has been reemployed by a participating 17
agency which offers the recipient a hospital and medical insurance 18
benefit or by a participating agency which is prevented from 19
offering a hospital and medical benefit to the recipient as a 20
condition of reemployment under KRS 70.293, 95.022, or 21
164.952. Individuals who are eligible, pursuant to this subdivision, 22
to be included in the Kentucky Employees Health Plan as provided 23
by KRS 18A.225 to 18A.2287 may be rated as a separate class 24
from other eligible employees and retirees for the purpose of 25
determining medical insurance premiums. 26
(c) For recipients of a retirement allowance who are not eligible for the same 27 UNOFFICIAL COPY 25 RS BR 229
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level of hospital and medical benefits as recipients living in Kentucky having 1
the same Medicare hospital and medical insurance eligibility status, the board 2
shall provide a medical insurance reimbursement plan as described in 3
subsection (6) of this section. 4
(d) Notwithstanding anything in KRS Chapter 78 to the contrary, the board of 5
trustees, in its discretion, may take necessary steps to ensure compliance with 6
42 U.S.C. secs. 300bb-1 et seq. 7
(3) (a) Each employer participating in the County Employees Retirement System as 8
provided in KRS 78.510 to 78.852 shall contribute to the insurance trust fund 9
established by KRS 61.701 the amount necessary to provide the monthly 10
contribution rate as provided for under this section. Such employer 11
contribution rate shall be developed by appropriate actuarial method as a part 12
of the determination of each respective employer contribution rate determined 13
under KRS 78.635. 14
(b) 1. Each employer described in paragraph (a) of this subsection shall deduct 15
from the creditable compensation of each member whose membership 16
date begins on or after July[September] 1, 2003[2008], and who is 17
subject to the benefits provided under paragraph (4)(e) of this section, 18
an amount equal to one percent (1%) of the member's creditable 19
compensation if the member is participating in a nonhazardous 20
position and two percent (2%) of the membe r's creditable 21
compensation if the member is participating in a hazardous position. 22
The deducted amounts shall, at the discretion of the board, be credited to 23
accounts established pursuant to 26 U.S.C. sec. 401(h), within the funds 24
established in KRS 78.520, or the insurance trust fund established under 25
KRS 61.701. Notwithstanding the provisions of this paragraph, a 26
transfer of assets between the accounts established pursuant to 26 U.S.C. 27 UNOFFICIAL COPY 25 RS BR 229
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sec. 401(h), within the funds established in KRS 78.520, and the 1
insurance trust fund established under KRS 61.701 shall not be allowed. 2
2. The employer shall file the contributions as provided by subparagraph 1. 3
of this paragraph at the retirement office in accordance with KRS 4
78.625. Any interest or penalties paid on any delinquent contributions 5
shall be credited to accounts established pursuant to 26 U.S.C. sec. 6
401(h), within the funds established in KRS 78.520, or the insurance 7
trust fund established under KRS 61.701. Notwithstanding any 8
minimum compensation requirements provided by law, the deductions 9
provided by this paragraph shall be made, and the compensation of the 10
member shall be reduced accordingly. 11
3. Each employer shall submit payroll reports, contributions lists, and other 12
data as may be required by administrative regulation promulgated by the 13
board of trustees pursuant to KRS Chapter 13A. 14
4. Every member shall be deemed to consent and agree to the deductions 15
made pursuant to this paragraph, and the payment of salary or 16
compensation less the deductions shall be a full and complete discharge 17
of all claims for services rendered by the person during the period 18
covered by the payment, except as to any benefits provided by KRS 19
78.510 to 78.852. No member may elect whether to participate in, or 20
choose the contribution amount to accounts established pursuant to 26 21
U.S.C. sec. 401(h) within the funds established in KRS 78.520, or the 22
insurance trust fund established under KRS 61.701. The member shall 23
have no option to receive the contribution required by this paragraph 24
directly instead of having the contribution paid to accounts established 25
pursuant to 26 U.S.C. sec. 401(h) within the funds established in KRS 26
78.520, or the insurance trust fund established under KRS 61.701. No 27 UNOFFICIAL COPY 25 RS BR 229
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member may receive a rebate or refund of contributions. If a member 1
establishes a membership date prior to July 1, 2003[September 1, 2008], 2
pursuant to KRS 61.552(2) or (3) or who is subject to the benefits 3
provided under paragraphs (4)(b) or (4)(d) of this section, then this 4
paragraph shall not apply to the member and all contributions previously 5
deducted in accordance with this paragraph shall be refunded to the 6
member without interest. The contribution made pursuant to this 7
paragraph shall not act as a reduction or offset to any other contribution 8
required of a member or recipient under KRS 78.510 to 78.852. 9
5. The board of trustees, at its discretion, may direct that the contributions 10
required by this paragraph be accounted for within 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, 13
through the use of separate accounts. 14
(4) (a) The premium required to provide hospital and medical insurance plan 15
coverage under this section shall be paid wholly or partly from funds 16
contributed by: 17
1. The recipient of a retirement allowance, by payroll deduction from his 18
or her retirement allowance, electronic funds transfer, or by other 19
method; 20
2. The insurance trust fund established by KRS 61.701 or accounts 21
established pursuant to 26 U.S.C. sec. 401(h) within the funds 22
established in KRS 78.520; 23
3. Another state-administered retirement system, including the systems 24
administered by Kentucky Retirement Systems, under a reciprocal 25
arrangement, except that any portion of the premium paid from the 26
funds specified by subparagraph 2. of this paragraph under a reciprocal 27 UNOFFICIAL COPY 25 RS BR 229
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agreement shall not exceed the amount that would be payable under this 1
section if all the member's service were in the County Employees 2
Retirement System. If the board provides for cross-referencing of 3
insurance premiums, the employer's contribution for the working 4
member or spouse shall be applied toward the premium, and the 5
insurance trust fund established under KRS 61.701 or accounts 6
established pursuant to 26 U.S.C. sec. 401(h) within the funds 7
established in KRS 78.520, shall pay the balance; or 8
4. A combination of the fund sources described by subparagraph 1. to 3. of 9
this paragraph. 10
Group rates under the hospital and medical insurance plan shall be made 11
available to the spouse, each dependent child, and each disabled child, 12
regardless of the disabled child's age, of a recipient who is a former member 13
or the beneficiary, if the premium for the hospital and medical insurance for 14
the spouse, each dependent child, and each disabled child, or beneficiary is 15
paid by payroll deduction from the retirement allowance, electronic funds 16
transfer, or by another method. For purposes of this subsection only, a child 17
shall be considered disabled if he or she has been determined to be eligible for 18
federal Social Security disability benefits or meets the dependent disability 19
standard established by the Department of Employee Insurance in the 20
Personnel Cabinet. 21
(b) For a member who began participating in the system prior to July 1, 2003, the 22
monthly contribution rate shall be paid by the system from the funds specified 23
under paragraph (a)2. of this subsection and shall be equal to a percentage of 24
the single premium to cover the retired member as follows: 25
1. One hundred percent (100%) of the monthly premium for single 26
coverage shall be paid for a retired member who had two hundred forty 27 UNOFFICIAL COPY 25 RS BR 229
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(240) months of service or more upon retirement or for a retired member 1
who when he or she was an employee was disabled as a direct result of 2
an act in line of duty as defined in KRS 78.510(48) or as a result of a 3
duty-related injury as defined in KRS 61.621; 4
2. Seventy-five percent (75%) of the monthly premium for single coverage 5
shall be paid for a retired member who had less than two hundred forty 6
(240) months of service but at least one hundred eighty (180) months of 7
service upon retirement, provided such retired member agrees to pay the 8
remaining twenty-five percent (25%) by payroll deduction from his or 9
her retirement allowance, electronic funds transfer, or by another 10
method; 11
3. Fifty percent (50%) of the monthly premium for single coverage shall be 12
paid for a retired member who had less than one hundred eighty (180) 13
months of service but had at least one hundred twenty (120) months of 14
service upon retirement, provided such retired member agrees to pay the 15
remaining fifty percent (50%) by payroll deduction from his or her 16
retirement allowance, electronic funds transfer, or by another method; or 17
4. Twenty-five percent (25%) of the monthly premium for single coverage 18
shall be paid for a retired member who had less than one hundred twenty 19
(120) months of service but had at least forty-eight (48) months of 20
service upon retirement, provided such retired member agrees to pay the 21
remaining seventy-five percent (75%) by payroll deduction from his or 22
her retirement allowance, electronic funds transfer, or by another 23
method. 24
(c) Notwithstanding paragraph (b) of this subsection, for a member participating 25
in the system prior to July 1, 2003, who: 26
1. Dies as a direct result of an act in line of duty as defined in KRS 78.510 27 UNOFFICIAL COPY 25 RS BR 229
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or dies as a result of a duty-related injury as defined in KRS 61.621, the 1
monthly premium shall be paid for his or her spouse so long as the 2
spouse remains eligible for a monthly retirement benefit; 3
2. Becomes totally and permanently disabled as defined in KRS 78.5524 as 4
a direct result of an act in line of duty as defined in KRS 78.510 or 5
becomes disabled as a result of a duty-related injury as defined in KRS 6
61.621 and is eligible for the benefits provided by KRS 61.621(5)(a), the 7
monthly premium shall be paid for his or her spouse so long as the 8
member and the spouse individually remain eligible for a monthly 9
retirement benefit; and 10
3. Dies as a direct result of an act in line of duty as defined in KRS 78.510, 11
dies as a result of a duty-related injury as defined in KRS 61.621, 12
becomes totally and permanently disabled as defined in KRS 78.5524 as 13
a direct result of an act in line of duty as defined in KRS 78.510, or 14
becomes disabled as a result of a duty-related injury as defined in KRS 15
61.621 and is eligible for the benefits provided by KRS 61.621(5)(a), the 16
monthly premium shall be paid for each dependent child as defined in 17
KRS 78.510, so long as the member remains eligible for a monthly 18
retirement benefit, unless deceased, and each dependent child 19
individually remains eligible under KRS 78.510. 20
(d) 1. For a member who began participating in the system prior to July 1, 21
2003, who was determined to be in a hazardous position in the County 22
Employees Retirement System, or who is receiving a retirement 23
allowance based on General Assembly service, the funds specified under 24
paragraph (a)2. of this subsection shall also pay a percentage of the 25
monthly contribution rate sufficient to fund the premium costs for 26
hospital and medical insurance coverage for the spouse and for each 27 UNOFFICIAL COPY 25 RS BR 229
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dependent child of a recipient. 1
2. The percentage of the monthly contribution rate paid for the spouse and 2
each dependent child of a recipient who was in a hazardous position or 3
who is receiving a retirement allowance based on General Assembly 4
service in accordance with subparagraph 1. of this paragraph shall be 5
based solely on the member's service in a hazardous position using the 6
formula in paragraph (b) of this subsection, except that for any recipient 7
of a retirement allowance from the County Employees Retirement 8
System who was contributing to the system on January 1, 1998, for 9
service in a hazardous position, the percentage of the monthly 10
contribution shall be based on the total of hazardous service and any 11
nonhazardous service as a police or firefighter with the same agency, if 12
that agency was participating in the County Employees Retirement 13
System but did not offer hazardous duty coverage for its police and 14
firefighters at the time of initial participation. 15
(e) For members who begin participating in the system on or after July 1, 2003: 16
1. Participation in the insurance benefits provided under this section shall 17
not be allowed until the member has earned at least one hundred twenty 18
(120) months of service in the state-administered retirement systems, 19
except that for members who begin participating in the system on or 20
after September 1, 2008, participation in the insurance benefits provided 21
under this section shall not be allowed until the member has earned at 22
least one hundred eighty (180) months of service credited under KRS 23
78.615(1) or another state-administered retirement system; 24
2. A member who meets the minimum service requirements as provided by 25
subparagraph 1. of this paragraph shall upon retirement be eligible for 26
the following monthly contribution rate to be paid on his or her behalf, 27 UNOFFICIAL COPY 25 RS BR 229
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or on behalf of the spouse or dependent of a member with service in a 1
hazardous position, from the funds specified under paragraph (a)2. of 2
this subsection: 3
a. For members with service in a nonhazardous position who do not 4
meet the career threshold, a monthly insurance contribution of ten 5
dollars ($10) for each year of service as a participating employee 6
in a nonhazardous position; 7
b. For members with service in a nonhazardous position who meet 8
the career threshold, a monthly insurance contribution towards 9
the health plans offered to retirees who are not eligible for 10
Medicare of forty dollars ($40) for each year of service as a 11
participating employee in a nonhazardous position and a 12
monthly insurance contribution towards the health plans offered 13
to retirees who are eligible for Medicare of ten dollars ($10) for 14
each year of service as a participating employee in a 15
nonhazardous position. The monthly insurance contribution 16
payable to retirees eligible for Medicare under this subdivision 17
shall be adjusted as necessary so that it is equivalent to the 18
monthly contribution amount computed under subdivision a. of 19
this subparagraph as adjusted by subparagraph 6.a. of this 20
paragraph; 21
c. For members with service in a hazardous position who do not 22
meet the career threshold, a monthly insurance contribution of 23
fifteen dollars ($15) for each year of service as a participating 24
employee in a hazardous position;[ and] 25
d. For members with service in a hazardous position who meet the 26
career threshold, a monthly insurance contribution towards the 27 UNOFFICIAL COPY 25 RS BR 229
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health plans offered to retirees who are not eligible for Medicare 1
of fifty dollars ($50) for each year of service as a participating 2
employee in a hazardous position and a monthly insurance 3
contribution towards the health plans offered to retirees who are 4
eligible for Medicare of fifteen dollars ($15) for each year of 5
service as a participating employee in a hazardous position. The 6
monthly insurance contribution payable to retirees eligible for 7
Medicare under this subdivision shall be adjusted as necessary 8
so that it is equivalent to the monthly contribution amount 9
computed under subdivision c. of this subparagraph as adjusted 10
by subparagraph 6.a. of this paragraph; and 11
e.[c.] Upon the death of the retired member, the beneficiary, if the 12
beneficiary is the member's spouse, shall be entitled to a monthly 13
insurance contribution of ten dollars ($10) for each year of service 14
the member attained as a participating employee in a hazardous 15
position; 16
3. The minimum service requirement to participate in benefits as provided 17
by subparagraph 1. of this paragraph shall be waived for a member who 18
receives a satisfactory determination of a hazardous disability that is a 19
direct result of an act in line of duty as defined in KRS 78.510(48) and 20
the member shall be entitled to the benefits payable under this 21
subsection as though the member had twenty (20) years of service in a 22
hazardous position; 23
4. The minimum service required to participate in benefits as provided by 24
subparagraph 1. of this paragraph shall be waived for a member who is 25
disabled as a result of a duty-related injury as defined in KRS 61.621 26
and is eligible for the benefits provided by KRS 61.621(5)(b), and the 27 UNOFFICIAL COPY 25 RS BR 229
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member shall be entitled to the benefits payable under this subsection as 1
though the member had twenty (20) years of service in a nonhazardous 2
position; 3
5. Notwithstanding the provisions of this paragraph, the minimum service 4
requirement to participate in benefits as provided by subparagraph 1. of 5
this paragraph shall be waived for a member who dies as a direct result 6
of an act in line of duty as defined in KRS 78.510(48), who becomes 7
totally and permanently disabled as defined in KRS 78.5524 as a direct 8
result of an act in line of duty as defined in KRS 78.510, who dies as a 9
result of a duty-related injury as defined in KRS 61.621, or who 10
becomes disabled as a result of a duty-related injury as defined in KRS 11
61.621 and is eligible for the benefits provided by KRS 61.621(5)(a), 12
and the premium for the member, the member's spouse, and for each 13
dependent child as defined in KRS 78.510 shall be paid in full by the 14
systems so long as the member, member's spouse, or dependent child 15
individually remains eligible for a monthly retirement benefit; 16
6. Except as provided by subparagraph 4. of this paragraph, the monthly 17
insurance contribution amount shall be increased: 18
a. On July 1 of each year by one and one-half percent (1.5%). The 19
increase shall be cumulative and shall continue to accrue after the 20
member's retirement for as long as a monthly insurance 21
contribution is payable to the retired member or beneficiary but 22
shall not apply to any increase in the contribution attributable to 23
the increase specified by subdivision b. of this subparagraph; and 24
b. On January 1 of each year by five dollars ($5) for members who 25
have accrued an additional full year of service as a participating 26
employee beyond the career threshold, subject to the following 27 UNOFFICIAL COPY 25 RS BR 229
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restrictions: 1
i. The additional insurance contribution provided by this 2
subdivision shall only be applied to the monthly contribution 3
amounts provided under subparagraph 2.b.[2.a.] and d.[b.] of 4
this paragraph; 5
ii. The additional insurance contribution provided by this 6
subdivision shall only be payable towards the health plans 7
offered by the system to retirees who are not eligible for 8
Medicare or for reimbursements provided to retirees not 9
eligible for Medicare pursuant to subsection (6)(a)2. of this 10
section; and 11
iii. In order for the annual increase to occur as provided by this 12
subdivision, the funding level of retiree health benefits for 13
the system in which the employee is receiving the additional 14
insurance contribution shall be at least ninety percent (90%) 15
as of the most recent actuarial valuation and be projected by 16
the actuary to remain ninety percent (90%) for the year in 17
which the increase is provided; 18
7. The benefits of this paragraph provided to a member whose participation 19
begins on or after July 1, 2003, shall not be considered as benefits 20
protected by the inviolable contract provisions of KRS 78.852. The 21
General Assembly reserves the right to suspend or reduce the benefits 22
conferred in this paragraph if in its judgment the welfare of the 23
Commonwealth so demands; 24
8. An employee whose membership date is on or after September 1, 2008, 25
who retires and is reemployed in a regular full-time position required to 26
participate in the system or the Kentucky Retirement Systems shall not 27 UNOFFICIAL COPY 25 RS BR 229
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be eligible for health insurance coverage or benefits provided by this 1
section and shall take coverage with his or her employing agency during 2
the period of reemployment in a regular full-time position; and 3
9. For purposes of this paragraph: 4
a. "Career threshold" for a member with service in a nonhazardous 5
position means twenty-seven (27) years of service credited under 6
KRS 16.543(1), 61.543(1), 78.615(1), or another state-7
administered retirement system and for a member with service in a 8
hazardous position means the service requirements specified by 9
KRS 78.5514(2)(a)2. or (3)(b), or 78.5516(6)(b), as applicable; 10
and 11
b. "Funding level" means the actuarial value of assets divided by the 12
actuarially accrued liability expressed as a percentage that is 13
determined and reported by the system's actuary in the annual 14
actuarial valuation. 15
(f) For members with service in another state-administered retirement system 16
who select hospital and medical insurance plan coverage through the system: 17
1. The system shall compute the member's combined service, including 18
service credit in another state-administered retirement system, and 19
calculate the portion of the member's premium monthly contribution rate 20
to be paid by the funds specified under paragraph (a)2. of this subsection 21
according to the criteria established in paragraphs (a) to (e) of this 22
subsection. Each state-administered retirement system shall pay 23
annually to the insurance trust fund established under KRS 61.701 the 24
portion of the system's cost of the retiree's monthly contribution for 25
single coverage for hospital and medical insurance plan which shall be 26
equal to the percentage of the member's number of months of service in 27 UNOFFICIAL COPY 25 RS BR 229
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the other state-administered retirement plan divided by his or her total 1
combined service and in conjunction with the reciprocal agreement 2
established between the system and the other state-administered 3
retirement systems. The amounts paid by the other state-administered 4
retirement plans and by the County Employees Retirement System from 5
funds specified under paragraph (a)2. of this subsection shall not be 6
more than one hundred percent (100%) of the monthly contribution 7
adopted by the respective boards of trustees; 8
2. A member may not elect coverage for hospital and medical benefits 9
through more than one (1) of the state-administered retirement systems; 10
and 11
3. A state-administered retirement system shall not pay any portion of a 12
member's monthly contribution for medical insurance unless the 13
member is a recipient or annuitant of the plan. 14
(5) Premiums paid for hospital and medical insurance coverage procured under 15
authority of this section shall be exempt from any premium tax which might 16
otherwise be required under KRS Chapter 136. The payment of premiums by the 17
funds described by subsection (4)(a)2. of this section shall not constitute taxable 18
income to an insured recipient. No commission shall be paid for hospital and 19
medical insurance procured under authority of this section. 20
(6) (a) The board shall promulgate an administrative regulation to establish a medical 21
insurance reimbursement plan to provide reimbursement for hospital and 22
medical insurance plan premiums of recipients of a retirement allowance who: 23
1. Are not eligible for the same level of hospital and medical benefits as 24
recipients living in Kentucky and having the same Medicare hospital 25
and medical insurance eligibility status; or 26
2. Are eligible for retiree health subsidies as provided by subsection (4)(e) 27 UNOFFICIAL COPY 25 RS BR 229
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of this section, except for those recipients eligible for full premium 1
subsidies under subsection (4)(e)5. of this section. The reimbursement 2
program as provided by this subparagraph shall be available to the 3
recipient regardless of the hospital and medical insurance plans offered 4
by the systems. 5
(b) An eligible recipient shall file proof of payment for hospital and medical 6
insurance plan coverage with the retirement office. Reimbursement to eligible 7
recipients shall be made on a quarterly basis. The recipient shall be eligible 8
for reimbursement of substantiated medical insurance premiums paid by the 9
recipient to obtain coverage for an amount not to exceed the total monthly 10
contribution rate determined under subsection (4) of this section. For 11
reimbursements provided under paragraph (a)2. of this subsection, the full 12
subsidy under subsection (4)(e)2. of this section shall be reimbursed by the 13
system to the recipient up to the amount individually paid by the recipient to 14
obtain coverage. In the case of recipients of a retirement allowance from a 15
nonhazardous position, the reimbursement shall be limited to the amount 16
paid by the recipient to obtain single coverage. 17
(c) For purposes of recipients described by paragraph (a)1. of this subsection, the 18
plan shall not be made available if all recipients are eligible for the same 19
coverage as recipients living in Kentucky. 20
Section 2. The Public Pension Oversight Board shall continue to monitor the 21
actuarial data of the County Employees Retirement System retiree health funds and shall, 22
during the 2025 Interim, evaluate potential legislative options to adjust retiree health 23
benefits and costs for those members who began participating in the system on or after 24
July 1, 2003, in the event the retiree health funds continue to see actuarial improvement. 25
Section 3. The amendments to the employee contribution provisions specified 26
in subsection (3)(b) of Section 1 of this Act, shall apply to employee contributions 27 UNOFFICIAL COPY 25 RS BR 229
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payable on or after July 1, 2026. 1
Section 4. The amendments to the monthly insurance contribution amounts 2
specified in subsection (4)(e)2. of Section 1 of this Act shall: 3
(1) Be payable prospectively for insurance premiums for health plans beginning 4
on or after January 1, 2026; 5
(2) Be increased annually after January 1, 2026, in accordance with subsection 6
(4)(e)6.a. of Section 1 of this Act; and 7
(3) For purposes of calculating the amounts that become payable on or after 8
January 1, 2026, apply to the service as a participating employee accrued on or after July 9
1, 2003, for covered members and retirees, regardless of retirement date. 10