Home » Pension spiking, other issues tackled by retirement clean-up bill

Pension spiking, other issues tackled by retirement clean-up bill

Rep. Jerry T. Miller, R-Louisville

FRANKFORT, Ky. — A bill that would change an anti-pension-spiking provision that has impacted mostly classified school employees in Kentucky has passed House committee.

House Bill 207, sponsored by House State Government Committee Chair Rep. Jerry T. Miller, R-Louisville, would prevent a reduction in an employee’s retirement allowance through the Kentucky Retirement Systems unless the employee’s compensation credited to KRS over the previous year has increased by a minimum of 10 percent plus $1,000. Current law sets the threshold at 10 percent, which has allowed any additional pay over that percentage – as little as $1, in cases—to trigger anti-pension spiking law.

KRS Executive Director of Benefits Erin Surratt said around 250 KRS members, mostly classified school district employees, were affected by the provision last year.

“Picking up a field trip or two during the year might lead to a spike,” she told the committee.

“What we have found is between $1 and $1,000,” can trigger the provision, KRS Executive Director David Eager added.

Other so-called “housekeeping” changes proposed in HB 207 as approved by the committee would change requirements regarding KRS board election ballots and change how increases in County Employees Retirement System’ pension and health insurance contribution rates are calculated, among other provisions.

HB 207 has no actuarial impact on the state, according to a letter from KRS cited by Miller. “There might be some savings on the administrative side, but, by and large, no actuarial impact,” he said.

HB 207 now goes to the full House for consideration.