Legislation freezing CERS rates for one year heads to Governor's desk
Photo: LRC Public Information - Christian McDaniel, R-Taylor Mill
Under Senate Bill 249, sponsored by Christian McDaniel (R- Kenton), County Employment Retirement System (CERS) rates will be frozen at current FY20 levels. Contribution rates for CERS employers for FY21 will be 24.06 percent for non-hazardous and 39.58 percent for hazardous.
Without SB249, CERS employer rates would have risen to 26.95 percent for non-hazardous and 44.33 percent for hazardous effective July 1, 2020.
In 2018, HB362 was passed which caps CERS employer contribution rate increases at 12 percent over the prior fiscal year until June 30, 2028. Under SB249 passed last week, rates are frozen for one year.
Language included in SB249 freezes pension contribution rates for health departments and other quasi-governmental agencies such as universities for another year at the FY20 level of 49.47 percent. Without SB249, these entities would have faced an increase to 93.01 percent. The one-time window where quasi-governmental agencies may voluntarily cease participation in KERS was extended to June 30, 2021.
SB249 also resets the unfunded liability amortization period from 24 years to 30 years as of June 30, 2019.
SB249 was passed by the House and Senate and has been delivered to Governor Beshear’s desk.