AN ACT relating to a supplemental payment for retired state employees, making an appropriation therefor, and declaring an emergency.
Summary
HB337 would provide a one-time supplemental payment to certain Kentucky public retirees in July 2025. Specifically, recipients of a monthly retirement allowance from the Kentucky Employees Retirement System (KERS) or the State Police Retirement System would receive an additional payment equal to their June 2025 monthly retirement allowance. The bill applies to retirees in both nonhazardous and hazardous KERS service, as well as State Police Retirement System beneficiaries.
To fund the payment, the bill appropriates $95 million from the Budget Reserve Trust Fund Account in fiscal year 2024-2025 to the Kentucky Public Pensions Authority. The appropriation is divided among the retirement funds: $84 million for nonhazardous KERS retirees, $6 million for hazardous KERS retirees, and $5 million for State Police retirees. The bill also declares an emergency, allowing it to take effect immediately upon passage and approval.
Impact
HB337 would temporarily increase retirement benefits for eligible state retirees without permanently changing the underlying pension formulas in KRS 61.691 or the retirement systems’ benefit structure. It directs a one-time state appropriation to the Kentucky Public Pensions Authority to prefund the supplemental payments, affecting the Budget Reserve Trust Fund and the retirement funds for KERS and the State Police Retirement System. The bill would primarily affect retired state employees and state police retirees receiving monthly allowances in July 2025.
Sentiment
The bill’s stated purpose and emergency clause suggest strong support for providing immediate financial relief to retirees. The text emphasizes that retirees have not received a cost-of-living adjustment since fiscal year 2011-2012, indicating a policy rationale centered on addressing long-term erosion in retirement purchasing power. No committee transcripts or recorded votes were provided, so the available record does not show formal opposition or amendment activity.
Contention
The main policy issue is fiscal: the bill uses $95 million from the Budget Reserve Trust Fund Account to fund a one-time supplement, which may raise concerns about the use of reserve funds and the affordability of recurring retiree relief. Another possible point of contention is equity among public employees and retirees, since the bill benefits KERS and State Police retirees specifically rather than all public pension recipients. Because no discussion transcripts or votes are available, no named legislators or stakeholder groups are identified as opposing or supporting these concerns.