Kentucky Retirement Systems, Frankfort, will receive a $60 million contribution for the $2 billion Kentucky Employees Retirement System for Non-Hazardous employees from the state's general fund surplus during fiscal year 2020, confirmed David L. Eager, KRS' executive director.
According to a presentation Tuesday to the state Legislature's interim joint committee on appropriations and revenue, the state's 2019 fiscal year general fund revenue surplus was a higher-than-expected $130 million.
Of that total, the state will contribute $70 million to a Teachers' Retirement System medical insurance fund, the remainder of which will go to the non-hazardous employees system.
The non-hazardous employees system is the worst-funded of all Kentucky retirement systems, with a funding ratio of 12.9% funded as of June 30, 2018, according to its most recent annual financial report.
Recent pension reform targeted at the non-hazardous employees system has proven controversial.
House Bill 1, signed into law by Gov. Matt Bevin on July 24, forces quasi-governmental agencies to leave that system if they are unable or unwilling to pay rising pension contribution costs, which are currently frozen at 49% of payroll for those agencies due to HB 1, but would otherwise be at 83% currently.
Mr. Eager could not immediately provide further information.
