Greetings KRTA Family:
I hope this email finds you doing well and you are finally thawing out. I can see grass for the first time in a long while!
Today is day 27 of the regular session and we currently have no new bills filed that have an impact on retirees. This past week, we had some great conversations with key leadership about HB 500 and the budget.
As I have previously discussed, the TRS budget requests were not fully funded, as most state agencies were not. The House is starting with a “bare bones” budget and requiring state agencies to present before the budget review committee to request any additional funding. Conversations with both House and Senate leadership indicate full intentions to fully fund the pension.
FEDERAL LEGISLATION
As many of you are aware, The Social Security Tax Fairness Act was filed and signed into law repealing WEP and GPO. This led to many of you receiving a lump sum back payment. Now you have to pay taxes on this. There has been a bill introduced at the federal level called “No Tax on Restored Benefits Act”. If passes, this bill would allow those who received a lump sum back payment to not pay income taxes on that amount. This has bipartisan support and could gain some momentum. I will keep you updated on this and may send out a call to action to contact your congressman. If you can wait a few weeks before filing your taxes, it may make a difference. More to come!
We are continuing to follow a few bills that may have some impact on our retirees:
· HB 183 TAXATION OR RETIREMENT DISTRIBUTION
This bill would amend KRA 141.019 to increase retirement distributions exclusion from $31,110 to $41,110 for taxable years beginning on or after January 1, 2027.
KRTA FULLY SUPPORTS THIS BILL AND WILL BE WATCHING IT CLOSELY
· SB 51 AN ACT PROPOSING A NEW SECTION OF THE CONSTITUTION OF KENTUCKY RELATING TO PROPERTY EXEMPTION TAXATION.
This bill proposes to create a new section of the constitution of Kentucky exempting homeowners who are 65 years of age or older from any increase in the valuation of their permanent residence. If passed, this would provide ballot language and be submitted to voters for ratification or rejection. Passed the Senate 37-0 and is currently in the House Committee on Committees.
KRTA FULLY SUPPORTS THIS BILL AND WILL BE WATCHING IT CLOSELY
To keep track of other educational related bills please CLICK HERE.
CLICK HERE TO GO TO OUR KRTA LEGISLATIVE RESOURCE PAGE
CLICK HERE TO RECEIVE OUR TEXT ALERTS FROM OUR TEXTING SERVICE
Visit TeachFrankfort.org to learn more about our 2026 Legislative Priorities, as well as the history and background of our legislative efforts.
If you have any questions or concerns please call us at the KRTA Headquarters at (800) 551-7979.