Weekly Update – 2-12-24

Greetings KRTA Family:

Another legislative week is in the history books and KRTA staff, lobbyists, and legislative volunteers remain optimistic that we will achieve all of our legislative priorities this session. 

Full funding of Teachers’ Retirement System (TRS) and the TRS Medical Insurance Fund appears likely. 

Two of our biggest priorities – full funding of the Teachers’ Retirement System (TRS) and the TRS Medical Insurance Fund – continues to head in the right direction.  As mentioned in previous updates, HB6 includes full funding of both priorities and HB1 includes an additional $500 Million to reduce the long-term liability of TRS.  We are still waiting for the Senate to release its version of the budget, but remain optimistic that both funding priorities will be included in the Senate’s version.

TRS prescription drug benefits exempt in a new bill (SB188) that regulates pharmacy benefit managers and administrators.

Sen. Max Wise has filed SB188 which deals with prescription drug benefits related to pharmacy benefit managers. One of our legislative priorities was to maintain our prescription drug benefits and oppose any legislation that would result in higher costs. KRTA worked with Senator Wise and TRS Medicare-Eligible annuitants and dependents or annuitants are not included in this bill. Thanks Senator Wise! We will continue to watch and analyze this bill as it continues through the legislative process.

More than 400 bills have been filed this session.  Here are some related bills that we’re watching: 

HB50 (Rep. Rawlings) – Allows for the transfer of deeds for both real estate and vehicles upon death to beneficiaries without the need for probate.  This bill will allow the home or vehicle owner to name the the beneficiary of the property within the deed itself so it can transfer without probate upon death.

SB4 (Sen. Higdon) – While SB 4 revises the use of teacher sick days upon retirement, this bill probably won’t result in the heated protests of the past. Proponents of SB 4 are correct in stating that there is no uniform policy statewide on how and under what circumstances personal leave days can be converted to sick days at the time of retirement. However, proponents are quick to cite isolated instances where administrators have been able to write additional days into their contracts, resulting—in some cases—in more than 500 sick/leave days at retirement.

The Senate Education Committee identified many issues with SB 4 during its committee hearing. One member voted no, citing that House Members in his Senate District were proposing HB 387 to combat the shortage of substitute teachers, and SB 4 would only exacerbate the issue. Other members voted yes but made it clear that we cannot continue to reduce benefits, provide little or no raises, and expect better school outcomes.

Given the cost of substitutes and the learning loss due to the absence of teachers, most districts would be better off incurring the increased retirement costs if they were to allow personal leave days to be converted to sick days at retirement.

SB 4 will likely be before the full Senate this week and will likely move to the House Education Committee if approved by the Senate.

HB190 (Rep. Sharp) This bill prohibits insurers, pharmacy benefit managers, and other pharmacy benefit administrators from requiring or incentivizing the use of a mail-order pharmaceutical distributor in limited health service benefit plans including limited health service contracts, limited health service organizations, the state employee health plan, and post secondary educational self-insured group health plans.

HB 134  (Rep. Tackett Lafferty, Brown Jr., Gentry, hale, Hart, Stevenson) – Amend KRS 141.019 to increase the retirement distribution exclusion from $31,110 to $41,110 for taxable years beginning on or after January 1, 2025.

HB 138 Amend KRS 161.500 to allow members of the Teachers’ Retirement System to recover up to 10 unpaid days that were missed to observe religious holidays; include the recovered days in count of days worked for service credit; EMERGENCY. Several bills have been filed related to education and are detailed in a report shared by the Kentucky Association of School Administrators.

The following bills deal with the Homestead Act and would require a constitutional amendment. 

SB23 (Sen. Nemes, Girdler, Meredith, Tichenor) Propose to amend Section 170 of the Constitution of Kentucky to include in the homestead exemption for owners who are 65 years of age or older any increase in the valuation of the real property that is assessed after the later of the year the owner turned 65 or the year the owner purchased the property.

As always,  we could not achieve any of our priorities without the advocacy and activity of our membership base.  Please stay up to date and be prepared for action if needed.

Kind regards,

Tim Abrams

Executive Director