Greetings KRTA Family,
The Kentucky General Assembly has now reached Day 47 of the 60-day legislative session.
The deadline for filing new bills has passed, and we are pleased to report that no new legislation has been filed that would negatively affect our retirees.
We are still waiting for the Senate’s version of the state budget to be released. We expect it to be introduced in the Senate Appropriations & Revenue Committee sometime in the next week.
Once the Senate approves its version of the budget, it will be sent back to the House. From there, members of the House and Senate will work together in a conference committee to finalize the budget.
State leaders must complete the final budget by the end of the month so it can be sent to the Governor before the April 2 veto period begins.
If the Senate budget includes anything that would negatively affect retirees—particularly related to KEHP health insurance—KRTA will strongly oppose it and make our concerns known.
As we reported last week, the proposed 5% cap on employer contributions to KEHP has been removed from the House budget (HB 500).
Final funding numbers have not yet been released, but we continue to monitor the situation closely.
HR 7361 – “No Tax on Restored Benefits”
There has been no movement on HR 7361, a bill that would eliminate federal taxes on certain Social Security benefits restored under the Social Security Fairness Act.
The bill was introduced by Rep. Lance Gooden (R-TX) and is currently in committee with only one co-sponsor.
Given the current situation in Washington, it is unlikely the bill will pass before the April 15 tax filing deadline.
HB 183 – Retirement Income Tax Relief
This bill would increase Kentucky’s retirement income tax exclusion from $31,110 to $41,110, beginning in 2027.
The bill is currently in the House Appropriations & Revenue Committee.
KRTA fully supports this bill and will continue monitoring it closely.
SB 51 – Property Tax Protection for Seniors
This bill proposes a constitutional amendment that would prevent increases in property tax assessments on a homeowner’s primary residence once they reach age 65.
The bill passed the Senate 37-0 and is now in the House Appropriations & Revenue Committee.
If approved by the legislature, the proposal would go to Kentucky voters for final approval.
KRTA fully supports this bill and will continue monitoring it closely.
HB 642 – Kentucky Teachers’ Retirement System Updates
This bill makes several technical updates to TRS laws, including:
The bill has passed committee and is now moving to the House floor for its first reading.
KRTA fully supports this bill and will continue monitoring it closely.
Kind regards,
Greg Roush, Executive Director