Transcript Highlights:

• Well, when you punish people for not paying their taxes, when you make it onerous for people not to pay
• They pay.
• So maybe we need to do something to non-custodial, non-paying parents to incentivize them to pay.
• This is way above my pay grade.
• This is way above my pay grade.

Bills: HB40, HB1916, HB1973, HB2524, HB2530, HB3180, HB3421, HB3783, HB4170, HB4213

Keywords: business court, civil procedure, litigation, jurisdiction, arbitration, divorce, property division, family law, court jurisdiction, marital assets, parent-child relationship, birth certificate, identity proof, Family Code, court process, attorney fees, court costs, legal expenses, dispute resolution, child support

Summary: The committee heard several House bills, most of them relating to family law and court procedure, and left each bill pending after testimony. House Bill 1916 would clarify that the court that issued a final divorce decree retains exclusive jurisdiction over later actions involving undivided property. House Bill 1973 would require a certified birth certificate, if reasonably available, to be filed with a SAPCR petition or allow alternative proof of parentage while keeping the information confidential. House Bill 2530 would add qualifications and procedural safeguards for appointing amicus attorneys in SAPCR cases, including notice and hearing requirements, minimum qualifications, conflict rules, and limits on what amicus attorneys may do. House Bill 2524 would make Family Code references to attorney’s fees consistent by using “reasonable and necessary” language. House Bill 3180 would correct a scrivener’s error in the civil discovery rules by changing “settlement” to “statement.” The committee also heard House Bill 4213, which would change the interest rate on overdue child support from the current 6 percent simple interest to a fixed 5 percent and require the Attorney General to report on the impact of the change. Testimony was sharply divided: supporters argued lower interest could improve collections and help low-income obligors catch up, citing research and the size of child-support arrearages; opponents said lowering the rate would reduce incentives to pay and harm custodial parents and children. The Attorney General’s office raised implementation concerns about a House version that would have created a variable rate, while the committee substitute was described as restoring a simple fixed rate. After testimony, the bill was left pending. The committee also discussed House Bill 40, updating business court provisions and supplemental jurisdiction; House Bill 3421, streamlining probate procedures for original wills and copies; and House Bill 417, clarifying venue for lawsuits involving private transfer fees on real property. Each drew limited testimony and was left pending. Finally, House Bill 3783 drew extensive testimony on court-ordered counseling and reunification therapy in family cases. The sponsor and supporters said the bill would protect children and abuse victims from coercive, unregulated reunification practices, while opponents argued it was too broad, could interfere with legitimate therapy and judicial discretion, and might affect military families and other high-conflict cases. The committee heard testimony from judges, therapists, parents, survivors, and advocates, but took no final action and left the bill pending.

Transcript Highlights:

• Texans already pay these taxes on their own electric bill, and they have to pay that tax again when their
• The amount we pay is enough to pay for an employee's salary, for example, or it's enough to replace a
• All of the customers that are actually paying the tax are paying double taxation because the tax...
• You actually pay the 2% not only on the amount that you pay the retail electric provider, but you also
• I'm willing to pay this?"

Bills: HB511, HB972, HB 1035, HB2481, HB2723, HB2742, HB2894, HB2962, HB3077, HB3093, HB3307, HB3684, HJR67, HJR72

Keywords: ad valorem taxation, caregiver exemption, Medicaid, long-term services, tax relief, assisted living, housing support, property tax exemption, caregiver support, residence homestead, tax exemption, unpaid caregiver, state tax code, property tax, caregiver, waiting list, intellectual disability, developmental disability, ad valorem tax, family support

Transcript Highlights:

• because again we're projecting paying because again we're projecting paying those<00:25:42.159><
• calculation is a little above my pay calculation is a little above my pay grade<00:39:48.560>
• from pay as you go. from pay as you go.
• You're paying more principle it flips. You're paying more principle than<01:27:46.480> interest.
• <01:43:35.679> Yes, additional to pay off that off. Yes, additional to pay off that off.

Keywords: 958, all

Summary: The meeting opened with a quorum call, the Pledge of Allegiance, a prayer, and approval of the prior meeting minutes. The first presentation was from Bo Craycraft of the Judicial Form Retirement System, who gave an update on investment performance, asset allocation, cash flow, and projected employer costs. He reported strong fiscal year 2025 investment results, with both the legislative and judicial retirement plans outperforming their actuarial assumed rates of return and benchmarks, driven largely by U.S. equity performance. He also noted the plans remained near their target asset allocation and continued to experience negative cash flow, though he said that was manageable in context of strong asset growth. Craycraft then discussed a recent experience study and actuarial assumption changes, especially a revised salary growth assumption and a higher cash balance interest credit rate. He said these changes increased projected employer costs, with contributions rising from about $700,000 to a projected $2 million in later years, though he expected the eventual 2025 valuation and investment gains to reduce that estimate. Members asked about mortality assumptions, the impact of the experience study on liabilities, and the sharp increase in the judicial plan’s projected employer cost. Craycraft explained that the increase was driven mainly by the updated assumptions and that no other major plan changes were involved. At the chair’s request, Craycraft also addressed the recent rise in Medicare Advantage premiums for the plan’s health coverage, saying the 2025 increase was largely tied to Part D changes and the Inflation Reduction Act and had been about 45%, but that future growth was expected to be under 5%. After his presentation, the committee moved to the Kentucky Public Pensions Authority update, where the next speaker began by saying the funds had exceeded actuarial assumed returns for the fiscal year.

Transcript Highlights:

• aside to pay for maintenance and so on. aside to pay for maintenance and so on.
• They don't pay that.
• We do have to pay that service.
• <02:05:04.719> So to pay debt service. So to pay debt service.
• We do have to pay that pay for it. We do have to pay that service. service. service.

Keywords: 928, house, all

Summary: The Joint Committee on Dedicated Funds met to review the House budget provision that would impose a 5% administrative charge on a broad list of dedicated funds, with some exemptions. Members discussed the House approach versus the Senate’s more general approach of leaving the governor discretion over which funds could be charged. The chair explained the committee was hearing from agencies about any legal, contractual, or practical reasons their funds should be exempt, and the agenda was expanded to include several departments and written submissions from others. The Department of Education testified first, identifying several funds it said should be exempt: a printing revolving fund that is funded by transfers rather than fees; teacher certification, which is self-funded by educator licensing fees and would require an immediate fee increase if charged; a vending stand set-aside tied to the federal Randolph-Sheppard program and subject to federal approval and vendor committee procedures; and a public school infrastructure/safety account, where most revenue is transferred from the education trust fund or general fund rather than generated by fees. Members questioned the department about the effect on school safety projects and whether the fee would simply reduce the number of projects completed each year. The Veterans Home asked for exemptions for three funds: a donation benefit account used for recreational activities and quality-of-life expenses for residents, a small memorial trust fund whose interest supports veteran activities, and a resident member account that holds veterans’ personal income such as Social Security and pensions. The department argued the charge would reduce donations, cut services, and effectively function like an income tax on vulnerable veterans. The Banking Department also requested exemption for its consumer credit administration license fund, saying it is used to keep exam fees low and is expressly intended by statute to reduce costs on regulated businesses; it said the 5% charge would undermine that framework and could eventually force higher fees. The Department of Justice began testimony on its dedicated funds, starting with the medical legal investigative fund, which pays for death investigations and related services under statute and without general fund support. No votes or final actions were taken in the portion of the meeting provided; the committee mainly heard testimony and asked questions about the practical and legal effects of applying the administrative charge.

Transcript Highlights:

• their bills and pay their mortgage and pay their employees and do all that thing to where there would
• their bills and pay their mortgage and pay their employees and do all that thing to where there would
• So we're paying for physical fitness equipment for the Bismarck PD, paying for drones for the county
• They have some court fees and such to pay, but they don't pay a hoteling bill in the alternative.
• And then how about the frequency of an offender stop paying, you know, when they stop paying?

Summary: The Judiciary Interim Committee met to begin its study of charitable gaming and the ownership of alcoholic beverage establishments by licensed charitable gaming organizations, a study directed by Senate Bill 2334. Legislative Council gave an overview of the constitutional and statutory framework for charitable gaming, site authorizations, rent limits, proceeds, and recent legislative changes. The Attorney General’s Gaming Division then clarified the financial flow of gaming, explaining that in fiscal year 2025 North Dakota had about $2.5 billion in gross gaming proceeds, with roughly 88-90% paid back in prizes and about $256 million available to organizations after taxes; most of that activity came from electronic pull tabs. Members asked for more detail on winnings, replays, rent, and the breakdown of manufacturer/distributor revenues, and the AG’s office agreed to provide supplemental information. The committee also heard from the League of Cities and the Association of Counties about local site authorization. Cities said they have a limited role in approving gaming sites, can adopt policies after public hearing, may charge up to $100, and can set certain conditions, including local nexus requirements, but cannot require donations or force a specific charity or site. The League said it had worked with stakeholders on a model policy to provide more consistency, though members raised concerns that local requirements could become too restrictive for charities serving broader areas. Counties said the issue is mostly a city matter, with little county involvement beyond minimal site fees and general site approval. The North Dakota Gaming Alliance testified in support of the study and provided IRS-related material suggesting charities may use asset diversification, while emphasizing it had not taken a position on whether charities should own bars. Members questioned whether bar ownership is being used for site stability or to channel charitable gaming dollars, and whether city policies might disadvantage charities with broader missions. The committee also discussed the relationship between gaming organizations, manufacturers, and distributors, including restrictions on incentives and interference, and asked for more information on those entities and their ownership. Later in the meeting, the Racing Commission gave its regular update on live racing, pari-mutuel wagering, ADW providers, purse and promotion funds, a new TRPB contract, and concerns about cease-and-desist actions from other states. Finally, the State Hospital superintendent briefly reported on the Department of Corrections and Rehabilitation’s support services, including the SORT team, training, and security assistance for the hospital campus.

Transcript Highlights:

• Everybody pays the same or bring down the higher ones to fit.
• President, who pays for tax incentives in the United States?
• So when you offered a tax incentive, you don't pay as much as what you would normally pay if you didn't
• Nobody's paying the point 4. It's just that you don't pay the.4.
• It's not really to do with what the farmer is paying.

Bills: SB2102, SB1940, SB1625, SB1442, SB1623, SB1242, SB1949, SB1592, SB1913, SB592, SB992, SB1241, SB259, SB1928, SB1426, SB1531, SB1561, SB1122

Keywords: credit card fees, merchant discounts, payment card network, interchange fees, transparency in fees, Oklahoma law, payment card, rebate, merchant, tax compliance, health insurance, mandate, impact analysis, insurance department, public health, access to healthcare, SB1442, alcoholic beverage control, ABLE Commission, liquor license fees

Transcript Highlights:

• I'm not like, oh, I just want to pay more taxes, but I'm going to go pay the taxes for my property, right
• money to pay for the tax.
• Keep in mind if they didn't pay sales tax, they're still going to have to pay sales tax.
• He will pay his... He'll show the bill of sale. He will pay the sales tax on the $10,000.
• I'll pay the fine and I'll move on.

Keywords: 959, house, all

Transcript Highlights:

• Pay for something that we're giving the money to pay out of the allotment you've created.
• One side note, we pay a $3.5 million penalty because we pay these salaries.
• So I wouldn't ask you to consider that because, you know, the pay raise is not all of the pay raise.
• pay provisions in this teacher pay raise that's permanent within the allotment.
• You're asking for more flexibilities and not necessarily are pay provisions in this teacher pay raise

Bills: HB2

Keywords: disaster preparedness, emergency management, flooding, mass fatality, mass casualty, fatality tracking, body recovery, autopsy, justice of the peace, medical examiner, county judge, sheriff, mayor, emergency coordinator, emergency manager license, volunteer management system, volunteer registration, criminal history check, background check, Texas Division of Emergency Management

Summary: The Senate Education K-16 Committee met to consider HB 2, the major school finance bill, with the chair explaining that the committee substitute would provide about $8 billion in new public education funding. The bill was described as including permanent teacher compensation increases, expanded teacher incentive allotment funding, support for early literacy and numeracy, teacher certification and residency pathways, special education funding, career and technical education, school safety dollars, and facilities support for charter schools. The committee adopted the committee substitute without objection after roll was called and a quorum was present. Members questioned the bill’s structure, especially the balance between across-the-board teacher pay and the teacher incentive allotment, the treatment of uncertified teachers, and differences in requirements between traditional public schools and charter schools. Senator Menendez and Senator West raised concerns about equity, charter-school parity, facilities funding, inflation, and whether the bill should include more support for fine arts and extracurricular programs. The chair responded that the bill was designed to direct most new money to traditional public schools while also preserving flexibility and that charter-school and public-school alignment would need further work. Invited witnesses Dr. Imelda De La Rosa and Val Acri testified in support of the bill, emphasizing that the Teacher Incentive Allotment helps recruit and retain teachers in rural districts and supports mentorship and certification pathways. Public witnesses also supported the bill but urged more funding for fine arts, local flexibility, and full restoration of House-proposed funding levels. Dr. Josh Jones supported year-long teacher residencies, Dr. Philip Morgan asked for more local control and restoration of fine arts funding, Rich Saina supported the bill but warned about hold-harmless reductions, and Dr. Greg Poole supported the bill while asking for flexibility for high-performing districts that already pay high salaries. After the invited testimony and some public testimony, the committee recessed subject to the call of the chair so members could attend the Senate floor.

Transcript Highlights:

• We'll be paying more retirees out than we have active members paying in.
• Paying in.
• The employers pay 13.5%.
• pay 9.6%.
• to pay.

Transcript Highlights:

• So their employees will have to pay into a plan that they can't use while the company pays into a plan
• every single dollar of pay.
• So they're not paying.
• Madam Chair, Representative, but they still pay GRT taxes. They'll still pay sales taxes.
• They'll pay property taxes. They'll pay other taxes imposed.

Transcript Highlights:

• Our teachers absolutely deserve better pay. But there are unfunded costs.
• Really what we need is the flexible money to provide pay raises to all of our staff.
• for future pay raises.
• So if we're looking for... ...or anything else that we can use to pay for future pay raises.
• HB 2's proposed expansion will allow up to 50% of educators to benefit from higher pay.

Bills: HB2

Keywords: disaster preparedness, emergency management, flooding, mass fatality, mass casualty, fatality tracking, body recovery, autopsy, justice of the peace, medical examiner, county judge, sheriff, mayor, emergency coordinator, emergency manager license, volunteer management system, volunteer registration, criminal history check, background check, Texas Division of Emergency Management

Summary: The committee continued public testimony on House Bill 2, which would make major changes to public school funding, teacher pay, special education, early learning, school safety, and related programs. Many superintendents and education advocates supported the bill’s overall direction but urged changes, especially a larger basic allotment and more flexible funding for rural and small districts. Witnesses from Paint Creek, West Hardin, Cushing, Blooming Grove, Mildred, Buffalo, Plano, and rural school groups said the bill’s targeted raises and new requirements would not fully cover inflation, TRS/Medicare costs, transportation, insurance, or support staff salaries, and several asked the committee to restore the House version’s higher basic allotment and small-school allotment. Charter school representatives supported the facilities funding changes and said charter schools need state help because they cannot levy taxes, while also noting the funding gap with ISDs. Fine arts advocates asked the committee to restore the fine arts allotment, arguing arts improve engagement, attendance, and academic outcomes, especially in rural and at-risk communities. Early learning and special education witnesses supported parts of the bill but raised concerns about pre-K restrictions, disability-related pre-K access, and the need to preserve or clarify special education provisions and mental health oversight language. Several witnesses praised the teacher pay raise, teacher incentive allotment expansion, and teacher preparation investments, saying they would help recruit and retain educators and improve student outcomes. Others, including counselors and support staff advocates, argued the bill should also include raises for counselors, nurses, librarians, bus drivers, custodians, aides, and other non-teaching employees who keep schools running. One witness from the Texas Counseling Association opposed the substitute because it removed a counselor pay provision, warning of counselor shortages and inequities. A parent and special education advocate said the bill’s structure creates too many strings attached and asked for a larger basic allotment instead of more targeted funding. Another witness from Mental Health America urged keeping the collaborative task force on public school mental health services through 2031, and a disability rights advocate said the committee substitute appears to omit some special education items that were in the House version. The committee also briefly took up House Bill 6, a school discipline bill. After questions about automatic mandatory expulsion for vape possession and concerns about younger students, the committee adopted the substitute and voted to report HB 6 favorably to the full Senate by a 9-1 vote, with Senator Menendez voting no and Senators West and Menendez expressing reservations but supporting further discussion. After that vote, testimony on HB 2 resumed. Senators used the hearing to ask about the bill’s cost, the difference between the basic allotment and the bill’s targeted funding buckets, and whether the permanent teacher pay increase shifts pressure off districts. The bill’s supporters emphasized that it represents an historic, roughly $8 billion investment and that many of the new funding streams are intended to be permanent or to address specific district needs.

Transcript Highlights:

• It's on paying their utility bills.
• It's on paying for the gas for those buses. It's on paying for okay center. Yeah. Got it. Dr.
• Average pay, not so well.
• Instead of redistributing. our wealth, we should pay the teachers across the board, pay into the TRS
• TEA is paying commit... $11 million. They're paying Educate Texas $30 million.

Bills: HB2, HB2

Keywords: public education, teacher compensation, certification, funding, school finance, educator rights, education funding, charter schools, staff compensation, state aid, retention allotment, disaster preparedness, emergency management, flooding, mass fatality, mass casualty, fatality tracking, body recovery, autopsy, justice of the peace

Transcript Highlights:

• It's fraud on the state because they're not paying taxes.
• And less pay for families means that we have to cut corners in order to pay our bills and make ends meet
• And less pay for families means that we have to cut corners in order to pay our bills and make ends meet
• Earnings rather than the use of overbroad pay bands.
• SB 642 also revises the definition of pay scale.

Summary: The Assembly Labor and Employment Committee heard several bills focused on worker rights, workplace technology, pay equity, and retail/self-checkout standards. SB 703 would require ports to collect and report information on trucking companies to help identify worker misclassification in the port trucking industry; supporters, including Teamsters and the California Labor Federation, said better data is needed for enforcement, while trucking and retail groups said they were working with the author and expected to remove opposition after amendments. The bill passed 5-0 and was re-referred to Transportation. The committee also approved a consent calendar of other measures. SB 294, the Workplace Know Your Rights Act, would require the Labor Commissioner to create a template for annual employer notices about workers’ labor and civil rights, including emergency contact notification if a worker is detained or arrested. Supporters said the bill would help workers understand their rights amid federal rollbacks and weak enforcement; the California Restaurant Association opposed it. SB 7 would require notice and human review before employers use automated decision-making systems for discipline or termination, and would bar predictive use of such systems for employment actions. Labor groups supported the bill as a safeguard against biased or opaque algorithmic management, while HR, chamber, retail, and local government groups raised concerns about breadth, notice burdens, and small-business impacts. Both bills passed 5-0 to their next committees. The committee also advanced SB 238, which would require disclosure about workplace surveillance and AI monitoring tools, and SB 442, which sets staffing and operational standards for self-checkout, including at least one staffed lane, one employee dedicated to monitoring self-checkout, item restrictions, and a 15-item limit sign. Supporters argued both bills improve transparency, safety, and worker protections; opponents warned SB 238 could expose security practices and SB 442 could raise costs and create preemption issues. SB 464 would expand state pay-data reporting to better capture public-sector workforce demographics in line with reparations and pay-equity goals, and SB 642 would strengthen the Equal Pay Act by extending recovery periods, clarifying wage definitions, and updating pay-scale language. SB 464 and SB 642 also passed, with some opposition from county and business groups over scope and retroactivity. All measures taken up in the hearing were approved by committee, generally on 5-0 votes, and re-referred to the appropriate policy or fiscal committees.

Transcript Highlights:

• their bills and pay their mortgage and pay their employees and do all that thing to where there would
• their bills and pay their mortgage and pay their employees and do all that thing to where there would
• They have some court fees and such to pay, but they don’t pay a hoteling bill in the alternative.
• And then how about the frequency of an offender stop paying, you know, when they stop paying?
• to pay, ending up having to...

Keywords: 908, all

Transcript Highlights:

• take in subsequent pay periods. take in subsequent pay periods.
• for hours or regular pay or overtime pay for hours or regular pay or overtime pay for working<00:
• um they did not always accurately pay um they did not always accurately pay overtime<00:06:47.520
• significant amount of shift bonus pay significant amount of shift bonus pay during<00:09:31.760>
• And since November of 2024, pay.

Keywords: 1183, house

Transcript Highlights:

• , are paying that wage.
• And I knew I had to pay my electrician's $80 an hour there, where I was paying them $25 here.
• And I knew I had to pay my electrician's $80 an hour there, where I was paying them $25 here.
• And I knew I had to pay my electrician's $80 an hour there, where I was paying them $25 here.
• And I knew I had to pay my electrician's $80 an hour there, where I was paying them $25 here.

Summary: The committee held a study on the potential effects of living wage or minimum wage laws in Oklahoma, with the chair emphasizing that the discussion was not intended to advocate for or against State Question 832. The first panel focused on economic and workforce impacts. An Oklahoma Department of Commerce representative argued that living wage calculations vary by region and household type, that Oklahoma’s average wages are already near or above many living-wage estimates, and that higher mandated wages could lead employers to cut hours, reduce hiring, automate, or avoid expansion, especially in rural areas where childcare, healthcare, broadband, and infrastructure constraints also affect labor participation. Committee members asked about wage distributions, rural cost differences, training pathways, and whether higher wages might draw workers or businesses out of state; the witness said many low-wage workers move up over time and that Oklahoma has seen net in-migration. A State Chamber Research Foundation witness then testified that a $15 statewide wage floor would raise payroll costs substantially, especially for small rural employers, and cited examples from California and Seattle to argue that higher wages can reduce hours, jobs, and benefits while increasing consumer prices. She suggested alternatives such as expanding the state earned income tax credit and promoting upskilling through existing education and training programs. A Missouri Chamber of Commerce and Industry representative described Missouri’s recent voter-approved minimum wage increase to $13.75, rising to $15, along with paid sick leave provisions. She said the chamber opposed the measure because it would raise business costs, hurt rural communities and youth employment, and force some employers to cut hours, reduce hiring, or close. She cited examples from Missouri businesses facing significant added costs and warned that a future ballot initiative could create a patchwork of local minimum wages. In response to questions, she said Missouri’s law did not distinguish by age or industry, that businesses had raised concerns about union contracts and compliance, and that the chamber viewed the measure as harmful to competitiveness. Peter Hansen of NFIB presented the final major testimony, summarizing an NFIB study projecting that a higher Oklahoma minimum wage would produce some short-term GDP gains but longer-term losses, with GDP turning negative by the early 2030s and job losses growing over time. He said businesses respond to higher wage mandates by raising prices, trimming jobs, converting full-time positions to part-time, reducing benefits, and shifting investment toward automation or other capital. He argued that the burden falls most heavily on vulnerable workers such as young or marginal employees, who are less likely to be hired when labor costs rise. In questioning, he acknowledged that higher wages can improve pay for some workers and may have some short-term positive effects, but maintained that the long-term employment and investment effects are negative. No votes or formal actions were taken in the meeting.

Transcript Highlights:

• The House is trying to figure out how to pay, pay for those continuation of the tax cuts that under normal
• We get richer, we're going to pay a greater share.
• The one Medicare program that I worry about is paying for Medicare prescription drugs because we pay
• This pays for hospital, doctor's visits, uh, this pays for everybody's, uh, no matter which other program
• is now going to be paying 150% of what Medicare will pay for in an attempt to frankly leverage these

Transcript Highlights:

• funds were not used to pay vendors.
• And so they have to pay it. I mean, you're either going to pay it or you're going to pay it.
• You're not going to pay it.
• No restaurant can understand what it is they're paying if it's even what they agreed to pay.
• ...and everybody pays for it, whether you pay with a credit card or not.

Bills: SB231, SB584, SB600, SB668, SB841, SB986, SB1003, SB1244, SB1625, SB1960, SB1963, SB1964, SB2026, SB2056, SB2368

Keywords: temporary emergency electric energy facility, temporary generation, emergency power, backup generation, mobile generator, portable generator, grid resilience, power outage restoration, transmission and distribution utility, TDU, Public Utility Commission of Texas, PUCT, Utilities Code Section 39.918, competitive bidding, lease authorization, emergency procurement, bulk power system, locational marginal pricing, reliability model, black start

Transcript Highlights:

• to pay more for the warranty. to pay more for the warranty.
• <00:38:38.000> for<00:38:38.120> your to pay for the doctor and pay for your to pay
• pay pay that<00:53:35.720> extra<00:53:36.000> amount?
• The co-pay is the same.
• to pay for those expenses. to pay for those expenses.

Keywords: 916, all

Transcript Highlights:

• Um pay see as it continues to tick up.
• They were already paying 3/4%. trust. They were already paying 3/4%.
• retirees started phasing into paying retirees started phasing into paying more<00:33:23.760>
• So Medicare agrees to pay for certain things. About 96% of certain costs Medicare will pay for.
• <00:48:54.720> more they could pay and they could pay more they could pay and they could pay

Keywords: Meeting Start: 00:00:35 Attendance Roll Call: 00:00:55 Approval of Minutes: 00:02:56 Deferred Compensation Authority Update: 00:03:12 Retiree Health Update - TRS: 00:15:58 Retiree Health Update - KPPA: 00:56:13 Adjournment: 01:08:10, 958, all

Summary: The Public Pension Oversight Board met with a quorum, approved the prior minutes, and heard updates from the Kentucky Public Employees Deferred Compensation Authority and the Teachers Retirement System. The deferred compensation update highlighted continued growth in assets to about $4.787 billion and roughly 88,000 participants, strong retention from auto-enrollment, a marketing campaign tied to pay raises that generated additional participation, and a new self-directed brokerage account expected to launch July 1 of the coming year for participants with at least a $40,000 balance, allowing up to 25% of their account to be moved into the brokerage window. The director also described the free financial planning service, which has been used by about 3,500 participants with a high return rate, and said the plan is currently in a fee holiday; if fees are charged, they are capped at $237 per year for most participants. Members asked questions about who provides the CFP service, the fee structure, and the brokerage eligibility threshold. The director said the CFP service is provided through the authority’s service bundle with Nationwide, not as a separate paid service, and explained that the fee cap and current fee holiday are intended to keep the program low-cost. Board members praised the deferred compensation program’s performance and asked for a copy of the legislation referenced in the presentation. TRS then presented on retired teachers’ health insurance. Barnes first clarified how declining federal contributions for federally funded school positions affect the retirement annuity trust, explaining that if those federal dollars fall, the amounts would need to be covered through the SEEK formula and that the projection for those contributions is about $80 million over the next three years. He then reviewed TRS retiree health coverage, distinguishing between KEHP for retirees under 65 or not Medicare-eligible and MEHP for Medicare-eligible retirees, and explained that TRS recently completed RFPs for both prescription drug and medical coverage. TRS will keep Express Scripts for prescription drugs, but will move the Medicare Advantage medical plan from UnitedHealthcare to Humana on January 1, 2026, while keeping the plan design, provider access, and out-of-pocket structure largely unchanged, with a new hearing-aid benefit of $500 per ear. Barnes also reported the 2026 premium and contribution changes: the maximum TRS contribution toward KEHP will rise to $1,144.96 from $930.76, an 18% increase that he said will require roughly $15 million to $16 million more in the state budget, while the MEHP premium will drop to $200 per month from $210. He said the TRS board has statutory authority to set these amounts and that the changes will have mixed actuarial effects, with the KEHP increase being negative overall and the MEHP decrease positive.