KY HB220

Amends KRS 61.598 to expand the definition of "bona fide promotion or career advancement" to include class-wide pay increases authorized by legislative/administrative bodies or mandated by collective bargaining agreements approved by the employer's legislative body

Makes the expanded definition retroactive to July 1, 2022, requiring the Kentucky Public Pensions Authority to review accounts of members who retired on or after that date and adjust benefits accordingly

Excludes elected officials who move from Kentucky Employees Retirement System or County Employees Retirement System to a position with a different employer in any state-administered retirement system from qualifying for the bona fide promotion exception

Applies to pension spiking rules for employees retiring from Kentucky Employees Retirement System, County Employees Retirement System, or State Police Retirement System on or after January 1, 2018, which cap creditable compensation increases at 10% annually during the final 5 fiscal years before retirement

Does not apply to employees participating in the hybrid cash balance plan under KRS 16.583, 61.597, 78.5512, and 78.5516