KY HB901

Allows County Employees Retirement System employers to make a one-time irrevocable election starting July 1, 2027 to convert hazardous position employees from Tier III benefits (post-January 1, 2014) to Tier II benefits (pre-January 1, 2014), with employers required to pay additional actuarial costs

Current Tier III hazardous employees have 30 days after their employer's election to individually choose to convert to Tier II benefits; employees hired after the election date automatically receive Tier II benefits for hazardous service

Employees or employers may pay costs to convert other Tier III hazardous service to Tier II service, with employer payments deposited to the retirement allowance account rather than counted as employee contributions

Employers must submit a resolution to the board at least 6 months before the desired effective date and may request cost estimates at any time if they pay for the actuarial analysis

Members who elected to participate in the hybrid cash balance plan under KRS 61.5955 are excluded from the Tier II conversion option; the act takes effect July 1, 2027