Kentucky SB 127: AN ACT relating to real estate license reciprocity.

Bill Text

UNOFFICIAL COPY 26 RS SB 127/GA
Page 1 of 17
SB012710.100 - 139 - XXXX 2/20/2026 10:29 AM GA
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 contributing 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

UNOFFICIAL COPY 26 RS SB 127/GA
Page 2 of 17
SB012710.100 - 139 - XXXX 2/20/2026 10:29 AM GA
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 component 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 component 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 contribution 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

UNOFFICIAL COPY 26 RS SB 127/GA
Page 3 of 17
SB012710.100 - 139 - XXXX 2/20/2026 10:29 AM GA
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 subsection 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) days 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 a