Strong Progress in Frankfort: Good News for Retirees
As we wrap up the week, we have encouraging news about HB 500 (the House Budget Bill).
Good News for Retirees
A floor amendment was heard in the Appropriations & Revenue (A&R) Committee on February 25, and it included several positive changes for retirees.
KEHP Under 65 Health Insurance
- The proposed 5% cap on employer contributions to KEHP has been removed from the bill.
- Lawmakers are now working with state agencies and actuaries to determine the final funding amount.
- No final number has been announced yet.
- While health insurance costs continue to rise, we do not expect increases as high as those discussed last week by the Personnel Cabinet.
TRS Funding
- The amendment also increases funding for TRS.
- Both the pension and health insurance systems are now fully funded in the House version of the budget.
This is very positive news.
HB 500 has passed the House (81-18) and now moves to the Senate. There is still work to be done before a final budget is approved. KRTA will continue advocating for improvements as the process continues.
Federal Legislation
“No Tax on Restored Benefits” — HR 7361
This bill would exempt Social Security benefits restored under the Social Security Fairness Act from federal taxation.
- Sponsor: Rep. Lance Gooden (R-TX)
- Status: In committee
- Currently has one co-sponsor
We are monitoring this legislation closely.
Other Bills We Are Watching
HB183 – Retirement Income Tax Exclusion
- Increases the retirement income exclusion from $31,110 to $41,110
- Would take effect January 1, 2027
- Currently in the House Appropriations & Revenue Committee
KRTA fully supports this bill.
SB 51 – Property Tax Protection for Seniors
- Would freeze property tax increases for homeowners age 65 and older on their primary residence
- Passed the Senate 37-0
- Now in the House
If approved by the legislature, it would go to voters for final approval.
KRTA fully supports this bill.
HB 642 – TRS Housekeeping Bill
This bill makes several updates to TRS statutes, including:
- Clarifies language on dependent children over 18
- Updates return-to-work provisions
- Reinstates the pension waiver program for teaching positions
- Raises the minimum daily pay threshold
- Allows TRS to offer index fund investment options to university and non-university members
The bill is currently in the House State Government Committee.
KRTA fully supports this bill.
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Have a great weekend!
Greg Roush
Executive Director
