AN ACT relating to a cost-of-living increase to the retirement benefits for retired state employees, making an appropriation therefor, and declaring an emergency.
Summary
HB336 would provide a one-time 2% cost-of-living increase to monthly retirement allowances for certain Kentucky public retirees, funded through appropriations from the state’s Budget Reserve Trust Fund Account. The bill directs $224 million to the Kentucky Employees Retirement System for nonhazardous retirees, $17 million to the same system for hazardous-duty retirees, and $16 million to the State Police Retirement System. The funds are to be used to prefund the increase in fiscal year 2025-2026, with the higher benefit amount taking effect July 1, 2025.
The bill applies to retired members and beneficiaries receiving benefits from the Kentucky Employees Retirement System and the State Police Retirement System. It specifically covers retirees in both nonhazardous and hazardous positions, as well as state police retirees, and it overrides contrary provisions in KRS 61.691 for purposes of the appropriation and benefit increase. The act also declares an emergency, making it effective immediately upon passage and approval, rather than waiting for a delayed effective date.
Impact
HB336 would amend the practical operation of Kentucky’s public pension funding by appropriating general fund dollars from the Budget Reserve Trust Fund Account to support a 2% COLA for eligible retirees. While it does not rewrite the core pension statutes, it creates a temporary, targeted funding mechanism that supplements the Kentucky Employees Retirement System and the State Police Retirement System and increases monthly retirement allowances for covered recipients beginning July 1, 2025.
Sentiment
The bill’s text reflects a strong supportive posture toward retired public employees, emphasizing that no cost-of-living adjustment has been received since fiscal year 2011-2012 and declaring an emergency to speed enactment. No committee transcripts or recorded votes were provided, so there is no documented opposition or debate in the supplied materials. Based on the bill language alone, the measure appears framed as a long-overdue benefit increase for retirees.
Contention
The main policy tension is fiscal: HB336 commits a large amount of general fund money from the Budget Reserve Trust Fund Account to pension-related spending, which may raise concerns about budget priorities, reserve use, and long-term pension affordability. Potentially affected parties include taxpayers, budget writers, and pension administrators, while supporters are likely retired state employees, hazardous-duty retirees, and state police retirees who would receive the increase. Because no discussion transcripts or votes are available, no specific objections or sponsors of contention can be identified from the provided record.
A CONCURRENT RESOLUTION urging the Kentucky Transportation Cabinet to petition the American Association of State Highway and Transportation Officials to designate certain highways as United States Highway 111.