AN ACT relating to a supplemental payment for retired state employees, making an appropriation therefor, and declaring an emergency.
Summary
HB 902 would provide a one-time supplemental payment in July 2026 to certain retired public employees in Kentucky. Eligible recipients are monthly retirees from the Kentucky Employees Retirement System or the State Police Retirement System who have been retired for at least 12 months. The payment would equal the retiree’s June 2026 monthly retirement allowance, but no individual payment could exceed $1,000.
The bill also appropriates $43.827 million from the General Fund budget reserve trust fund to the Kentucky Public Pensions Authority to pre-fund these supplemental payments. The appropriation is divided among the nonhazardous and hazardous funds of the Kentucky Employees Retirement System and the State Police Retirement Fund. The bill includes an emergency clause, allowing it to take effect immediately upon enactment, and states that it is intended to address the absence of a cost-of-living adjustment for these retirees since fiscal year 2011-2012.
Impact
HB 902 would amend the practical treatment of retirement benefits for eligible KERS and State Police retirees by creating a one-time supplemental benefit outside the normal monthly allowance structure. It would not permanently change the underlying pension formulas, but it would require a direct state appropriation and transfer of General Fund moneys to the pension systems to cover the cost of the payment. The bill affects the Kentucky Employees Retirement System, including both nonhazardous and hazardous service retirees, and the State Police Retirement System, while also implicating the Kentucky Public Pensions Authority and the state budget reserve trust fund.
Sentiment
The bill’s stated purpose suggests a generally favorable policy intent toward retired state employees, especially given the long period without a cost-of-living adjustment. The emergency clause indicates a sense of urgency and support for immediate relief. No committee transcript or vote record was provided, so there is no documented opposition or amendment debate in the supplied materials.
Contention
The main policy issue is fiscal: the bill requires a sizable General Fund appropriation from the budget reserve trust fund, which may raise concerns about budget impact and the use of reserve dollars. Another possible point of contention is eligibility and equity, since the benefit is limited to retirees who have been retired at least 12 months and is capped at $1,000, which may not fully offset inflation for all recipients. The bill text itself does not show recorded opposition, but any debate would likely center on pension funding priorities, one-time payments versus permanent COLAs, and the effect on state finances.
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.
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.