The Public Pension Oversight Board (PPOB) heard testimony about the implementation of Senate Bill 10, a KLC initiative that passed during the 2025 session.
Co-chaired by Senator Jimmy Higdon (R-Lebanon) and Representative Walker Thomas (R-Hopkinsville), the PPOB listened as Kentucky Public Pensions Authority (KPPA) Executive Director Ryan Barrow and Deputy Executive Director Rebecca Adkins summarized the effects of SB 10 as enhancing retirement health insurance benefits for current and retired employees in the County Employees Retirement System that meet certain career thresholds:
These enhanced amounts will be increased annually by 1.5% to account for health care inflation. Retirees who do not meet the career threshold will continue to receive the monthly contribution outlined in KRS 61.702. These rates increase annually by 1.5%. The current dollar amount is $14.85 for nonhazardous and $22.27 for hazardous. The KPPA went on to summarize that effective July 1, 2026, the Health Insurance Contribution rate for CERS members who were hired on or after July 1, 2003, will be at 1% for all tiers of non-hazardous employees and increase to 2% for all tiers of hazardous employees. CY 2025 non-Medicare Eligible Premiums were broken down as set forth below:
In response to questions from Representative James Tipton (R-Taylorsville) about when retirees will receive the benefit, the KPPA answered that the enhancement will go into effect in January. The KPPA also clarified that employers can expect an increase in contribution rate under SB 10. Based upon the actuarial analysis of the bill, nonhazardous employer contributions will see no immediate increase in health care contributions, while hazardous employers will see a slight increase.
For more information on SB 10, including a downloadable handout, click here.
Click here for the KPPA PowerPoint.
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