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Greetings KRTA Family,
The Kentucky General Assembly has now reached Day 42 of the 60-day legislative session. The deadline for filing new bills has passed, and no legislation has been filed that would negatively impact our retirees.
We are still waiting for the Senate’s version of the state budget to be released, and early conversations continue to be encouraging.
The House Budget Bill (HB 500) continues to move forward. A floor amendment was heard in the Appropriations & Revenue Committee on February 25, and it included several changes that are positive for retirees.
KEHP Under Age 65 Health Insurance
As we reported last week, the proposed 5% cap on employer contributions to KEHP has been removed from the budget bill.
While final numbers have not yet been released, we are hearing positive indications as budget negotiations continue.
There has been no movement on HR 7361, a bill that would exempt Social Security benefits restored through the Social Security Fairness Act from federal taxation.
The bill was introduced by Rep. Lance Gooden (R-TX) and currently remains in committee with one co-sponsor.
Given the current situation in Washington, it is unlikely this bill will pass before the April 15 tax filing deadline.
HB 183 would increase Kentucky’s retirement income tax exclusion from $31,110 to $41,110, beginning January 1, 2027.
The bill has been assigned to the House Appropriations & Revenue Committee.
KRTA fully supports this bill and will continue to monitor its progress.
SB 51 would propose a constitutional amendment to protect homeowners age 65 and older from increases in the assessed value of their permanent residence.
The bill has passed the Senate unanimously (37-0) and is now in the House Committee on Committees.
If approved by the legislature, it would go to Kentucky voters for final approval.
KRTA fully supports this bill and will continue to monitor it closely.
HB 642 is a technical “housekeeping” bill that makes several updates to Kentucky Teachers’ Retirement System statutes, including:
Clarifying rules related to dependent children over age
Updating return-to-work provisions
Reinstating the pension waiver program for teaching positions
Increasing the minimum daily compensation threshold
Allowing TRS to offer index fund investment options to university and non-university members
The bill has been referred to the House Committee on Committees.
KRTA fully supports this bill and will be monitoring it closely.
Have a great weekend!
Greg Roush, Executive Director