Kentucky HB642 - Teachers Retirement System Reforms

Kentucky Legislative Events

Published April 7th, 2026

Detected April 7th, 2026

Summary

Kentucky Governor signed HB642 into law (Acts Ch. 34) on April 7, 2026, enacting comprehensive reforms to the Kentucky Teachers' Retirement System. The legislation amends multiple KRS sections affecting survivor benefits eligibility, retired member earning thresholds, pension waiver program reinstatement, and new index fund investment options. Changes take effect immediately upon signing.

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What changed

HB642 makes substantive amendments to five KRS sections governing the Kentucky Teachers' Retirement System. Key changes include: removing the medical review committee requirement for dependent children over 18 to receive survivor benefits; raising the daily earnings threshold for retired reemployed members from $170 to $200; eliminating the provision allowing members to return to work one month earlier by forfeiting retirement benefits; reinstating the pension waiver program with prohibitions on returning as administrators; allowing TRS to offer index fund investment options with annuitization rates of 6.1% without COLA or 4.6% with COLA; and establishing that TRS board and staff bear no liability for member investment decisions.

For Kentucky teachers and education employees participating in TRS, these changes affect retirement planning, survivor benefit access, and employment options after retirement. Educational institutions employing retired teachers returning to work must comply with new earning limits and pension waiver restrictions. TRS administrators must update procedures for survivor benefit determinations, investment option disclosures, and establish new administrative regulations for index fund disbursements.

What to do next

Update administrative procedures for survivor benefit applications for dependent children over 18
Implement revised daily earning limit of $200 for retired reemployed members
Establish index fund investment option procedures and member disclosure requirements for the supplemental benefit component

Source document (simplified)

ChangeBridge / Kentucky / HB642 Signed by Governor HB642 House Bill Signed by Governor 2026-04-07

AN ACT relating to the Kentucky Teachers' Retirement System.

Amend KRS 161.520 to remove the requirement for dependent children over the age of 18 to have their mental or physical condition approved by a majority of a medical review committee to receive survivor benefits; amend KRS 161.605 to raise the minimum amount a retired reemployed member may earn per day from $170 to $200, remove the provision for returning to work 1 month earlier if the member forfeits 1 month of their retirement benefit, reinstate the pension waiver program and prohibit members returning to work under its provisions from returning to work as administrators, and make technical changes; amend KRS 161.608 to clarify that the Teachers' Retirement System (TRS) will acknowledge a member's earliest participation date in another state administered retirement system to determine benefit tier; amend KRS 161.620 to allow a member who is a parent to apply for and manage payments to a disabled child without necessity of a court order or other legal authority; amend KRS 161.635 and 161.636 to allow TRS to offer index fund investment options to university and nonuniversity members, to annuitize the investment return on the supplemental benefit applied to the index funds not to exceed 6.1% if there is no COLA in a given year or 4.6% if there is a COLA in the given year, allow TRS to promulgate administrative regulations to establish procedures for disbursements from the supplemental benefit component, and establish that neither the TRS board or staff shall be liable for any losses or claims due to a member's election of an index fund and state that members have the sole responsibility for their investment decisions.

Bill Details

State Kentucky

Session 2026 Regular Session

Chamber House

Official Source apps.legislature.ky.gov/record/26RS/hb642....

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Action History

2026-04-07 H signed by Governor (Acts Ch. 34) 2026-04-01 H delivered to Governor 2026-04-01 H enrolled, signed by President of the Senate 2026-04-01 H enrolled, signed by Speaker of the House 2026-03-31 H received in House 2026-03-31 S passed 37-1 2026-03-31 S committee amendment (1) withdrawn 2026-03-31 S committee substitute (1) withdrawn 2026-03-31 S 3rd reading 2026-03-26 S posted for passage in the Consent Orders of the Day for Friday, March 27 2026 2026-03-26 S 2nd reading, to Rules as a consent bill 2026-03-25 S reported favorably, 1st reading, to Consent Calendar with Committee Substitute (1) and Committee Amendment (1-title) 2026-03-24 S to State & Local Government (S) 2026-03-19 S to Committee on Committees (S) 2026-03-19 S received in Senate 2026-03-18 H 3rd reading, passed 96-0 with Committee Substitute (1) 2026-03-16 H posted for passage in the Regular Orders of the Day for Tuesday, March 17 2026 2026-03-13 H 2nd reading, to Rules 2026-03-12 H reported favorably, 1st reading, to Calendar with Committee Substitute (1) 2026-02-23 H to State Government (H) 2026-02-13 H to Committee on Committees (H) 2026-02-13 H introduced in House

Votes

2026-03-18 House: Veto Override RCS# 275 Yea: 96 Nay: 0 2026-03-31 Senate: Third Reading RSN# 4057 Yea: 37 Nay: 1

Committee Referrals

2026-02-13 H Committee On Committees 2026-02-23 H State Government 2026-03-13 H Rules 2026-03-19 S Committee on Committees 2026-03-24 S State & Local Government 2026-03-26 S Rules

Amendments

0000-00-00 House Committee Substitute 0000-00-00 House Committee Substitute 0000-00-00 Senate Committee Substitute 0000-00-00 Senate Committee Substitute 0000-00-00 Senate Committee Amendment

Bill Text Versions

0000-00-00 Introduced 0000-00-00 Engrossed

Subjects

Education, Elementary and Secondary Education, Higher Universities and Colleges Actuarial Analysis Public Officers and Employees Retirement and Pensions Teachers Legislative data powered by LegiScan (CC BY 4.0)

Named provisions

KRS 161.520 - Survivor benefits for dependent children KRS 161.605 - Retired reemployed member earnings KRS 161.608 - Participation date in other state systems KRS 161.620 - Payments to disabled children KRS 161.635 - Index fund investment options KRS 161.636 - Supplemental benefit component