KY HB98

Amends retiree health insurance contribution rates for Kentucky Employees Retirement System and State Police Retirement System members who began participating on or after July 1, 2003, creating a "career threshold" benefit structure with higher monthly contributions ($40/year nonhazardous, $50/year hazardous for non-Medicare eligible retirees) for members meeting 27 years of service

Establishes differentiated employee contribution rates based on position type: 1% of creditable compensation for nonhazardous positions and 2% for hazardous positions or State Police Retirement System, effective July 1, 2027

Creates separate monthly insurance contribution amounts for Medicare-eligible versus non-Medicare-eligible retirees, with Medicare-eligible amounts set at $10/year (nonhazardous) or $15/year (hazardous) of service

Allows members meeting the career threshold to receive an additional $5/year insurance contribution for each year beyond the threshold, but only if the retiree health fund maintains at least 90% funding level

Directs the Public Pension Oversight Board to evaluate potential legislative options during the 2026 Interim to further adjust retiree health benefits if actuarial conditions continue to improve