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SB 127 Kentucky Senate · 2026 Regular Session

AN ACT relating to actuarial costs of annual leave payments in the Teachers' Retirement System.

Summary
Amend KRS 161.540 to specify payment obligations for the inclusion of annual leave payments in a retiring member's pension benefits from the Teachers' Retirement System (TRS) by requiring the state to pay the actuarial costs for annual leave accrued through July 31, 2026, and the last employer pay the actuarial costs for annual leave accrued on or after August 1, 2026.
Issues: ✓ Budget & TaxesSupports Budget & TaxesBill mandates state payment of actuarial costs for teacher retirement benefits, ensuring budgetary coverage for TRS obligations without tax changes.85% confidence
Bill status passed 3 of 5 stages cleared
Introduction
Jan 2026
Committee Review
Apr 2026
Senate Passage
Feb 2026
House Passage
Governor
Introduced Jan 27, 2026 Last action Apr 15, 2026
Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Current/Final · 4 edits
MODERATE
The bill updates contribution rates for the Teachers' Retirement System based on when members joined and whether they work at universities or non-university schools. It also clarifies rules for how unused annual leave is treated for retirement calculations and funding purposes.
Scope change
The bill applies to all contributing members of the Teachers' Retirement System, distinguishing between those who joined before or after January 1, 2022, and between university and non-university employees.
FISCAL

Contribution rates were adjusted for members joining before January 1, 2022, increasing the total contribution from 12.855% to 12.855% (no change in total, but restructured allocation) and changing university member contributions from 10.4% to 10.4% (no change in total, but restructured allocation).

Contribution rates were set for members joining on or after January 1, 2022, establishing new split contributions of 14.75% for non-university members and 9.775% for university members.

REQUIREMENT

Rules for unused annual leave were updated to specify that payments must be made by employers who began compensating such leave prior to August 1, 2026, and clarified that accrued leave must exist before that date.

DEFINITION

The definition of how unused annual leave is credited for retirement calculations was refined to ensure equitable availability across all members under similar contracts.

Floor votes · Senate Feb 20, 2026

How they voted

33–10
Passed · 1 other
Total votes 44
Feb 20, 2026
D Democratic6
6 Nay
100% Nay
R Republican38
33 Yea 4 Nay 1
86% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
16
Key actions
3
Committee
7
Amendments
1
Apr 15, 2026
Committee
recommitted to Appropriations & Revenue (H)
lower
Mar 31, 2026
Introduced
floor amendments (1) and (2-title) filed
upper
Mar 26, 2026
Upper · Passed
reported favorably, 1st reading, to Calendar
upper
Mar 16, 2026
Committee
to State Government (H)
lower
Feb 23, 2026
Committee
to Committee on Committees (H)
lower
Feb 20, 2026
Upper · Passed
3rd reading, passed 29-8 with Committee Substitute (1)
upper
Feb 18, 2026
Upper · Passed
reported favorably, 1st reading, to Calendar with Committee Substitute (1)
upper
Feb 9, 2026
Committee
to State & Local Government (S)
upper
Jan 27, 2026
Committee
to Committee on Committees (S)
upper
Jan 27, 2026
Introduced
introduced in Senate
upper
0 primary · 0 co-sponsors

Sponsors

No sponsor information available.