We will keep advocating on your behalf and will update you as these bills move forward.
Sincerely,
Greg Roush
Executive Director
As of today, the General Assembly has completed 32 days of the regular session. We are officially past the halfway point.
The primary focus this week has been HB 500, the House Budget Bill. We continue to hear encouraging conversations regarding full funding of the Teachers’ Retirement System. Discussions with both House and Senate leadership indicate a clear intent to fully fund the pension, which is welcome news.
There has been significant concern from both legislators and the public about the current level of funding proposed for KEHP in the budget.
Many legislators have openly stated that the current funding level is not adequate and that they could not support HB 500 as written. That feedback is important.
Our legislative team met multiple times this week and strongly emphasized that this issue affects not only our retirees under age 65, but also current teachers, state employees, firefighters, police officers, and other public servants.
For decades, public employees have understood that while salaries may not always match the private sector, quality and affordable health insurance has been a vital part of their benefits. Reducing that commitment now would have a serious impact on many families.
The Appropriations and Revenue Budget Review Committee will continue working on HB 500. We expect to see updated budget numbers in the coming weeks, and I will keep you informed as soon as we know more.
The federal bill related to No Tax on Restored Benefits is now H.R. 7361. The legislation would exempt from taxation any Social Security benefits restored as a result of the Social Security Fairness Act.
The bill is sponsored by Representative Lance Gooden of Texas. It is currently in committee and has one co sponsor at this time.
Please know that we are watching these issues closely and advocating strongly on your behalf. I will continue to keep you updated every step of the way.
We remain committed to protecting your retirement and your health care.
We’re continuing to closely follow several bills that may directly affect our retirees and your financial security.
What it would do:
Increase the retirement income exclusion from $31,110 to $41,110 starting January 1, 2027.
Why it matters:
This means more of your retirement income could be protected from state taxes.
Where it stands:
Currently in the Appropriations & Revenue Committee.
Our position:
KRTA fully supports this bill and will be watching it closely.
What it would do:
Create a constitutional amendment to prevent increases in the assessed value of a permanent residence for homeowners age 65 and older.
If approved by the legislature, it would go to Kentucky voters for final approval.
Why it matters:
This could help protect seniors on fixed incomes from rising property taxes.
Where it stands:
Passed the Senate 37–0 and is now in the House Committee on Committees.
Our position:
KRTA fully supports this bill and will continue monitoring its progress.
What it does:
A housekeeping bill that makes several technical updates to TRS, including:
Clarifying dependent child provisions
Updating return-to-work policies
Reinstating the pension waiver program for teaching positions
Adjusting minimum daily thresholds
Updating disability language
Allowing TRS to offer index fund investment options
Where it stands:
Introduced and assigned to the House Committee on Committees.
Our position:
KRTA supports this bill and will continue watching it carefully.
We will keep advocating on your behalf and will update you as these bills move forward.