KY SB127

Amends KRS 161.540 to establish who pays the additional actuarial costs when retiring Teachers' Retirement System members receive payment for unused annual leave (up to 60 days)

State will pay the additional actuarial costs for unused annual leave accrued as of July 31, 2026

Last employer compensating the unused annual leave will pay the additional actuarial costs for leave accrued on or after August 1, 2026

Additional actuarial costs are defined as the amount payable for unused annual leave days beyond the fixed statutory employee and employer contributions already required under KRS 161.540 and 161.550(1)

General Assembly retains authority to adjust the contribution amounts paid by the state or employer if the welfare of the Commonwealth demands