KY HB554

Increases monthly insurance contributions for hazardous duty and State Police Retirement System members who meet career thresholds to $50 per year of service for non-Medicare eligible retirees and $15 per year of service for Medicare-eligible retirees, effective January 1, 2027

Clarifies that employee contribution deductions (1% for nonhazardous, 2% for hazardous positions) apply only to members subject to the post-July 1, 2003 benefit structure, with refunds provided to members who establish earlier membership dates

Directs the Public Pension Oversight Board to monitor actuarial data of KERS and State Police retiree health funds during the 2026 Interim and evaluate options to adjust benefits if funds continue to improve

Applies enhanced monthly insurance contribution amounts retroactively to all service accrued on or after July 1, 2003 for covered members and retirees, regardless of retirement date

Sets employee contribution amendments to take effect July 1, 2027, with insurance contribution increases payable prospectively for health plans beginning on or after January 1, 2027