The Kentucky House passed a bill that would require the state to pay the full actuarially required contribution rate for the $17 billion Kentucky Teachers’ Retirement System, Frankfort, starting in fiscal year 2017.
The measure passed the House by an 86-11 vote on Tuesday and is now headed to the Senate.
An amendment to phase in the actuarially required contribution over the next four years was defeated, said a news release on the Legislature’s website.
The additional amount required above what is appropriated to meet the full ARC in fiscal 2017 is $520 million.
A budget bill passed by the House last week includes an additional $520 million and $513 million to KTRS over the next two fiscal years, respectively, to fully fund its ARC. That bill, which also addresses funding for the $11 billion Kentucky Retirement Systems, is now before the Senate.
KTRS and KRS were 55.3% funded and 41.4% funded as of June 30, respectively, and face more than $30 billion in unfunded liabilities combined.
In 2013, the Legislature passed a bill calling for full funding of KRS’ actuarially required contribution starting in fiscal year 2015.
“KTRS appreciates the General Assembly’s interest in funding KTRS, including proposed statutory language that would require full funding of the ARC,” said Beau Barnes, KTRS’ general counsel and deputy executive secretary, in an e-mail.