Here's a legislative update from Jennifer Breiwa Smith, Special Assistant to the President for Government and Community Relations:
Last Wednesday, the Kentucky Senate passed House Bill 1 (HB1), an act relating to the Kentucky Employees Retirement System and declaring an emergency. Governor Matt Bevin signed the bill into law shortly after passage. (
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HB1 only affects Kentucky Employees Retirement System (KERS); this bill does not affect Kentucky Teachers Retirement System. As a reminder, HB1 gives quasi-governmental agencies and comprehensive universities four options to exit KERS. The bill also includes a rate freeze in the employer contribution at the FY 2018 level.
Two options to exit KERS would freeze employee benefits at current levels, and all employees would move out of the system and into the University sponsored defined contribution plan. These options are referred to as a hard exit. WKU leadership has no intention to make a hard exit from KERS.
The other two options to exit KERS provide for tier 1 and tier 2 employees to remain in the system and continue accruing benefits. Tier 3 employees would move from KERS to the University sponsored defined contribution plan. These options are referred to as a soft exit. WKU leadership will determine if either of the soft exit options are feasible. We expect to complete this evaluation process in late spring 2020.