Kentucky HB220 addresses pension spiking by limiting annual increases in creditable compensation for retirees.

Kentucky HB220 modifies pension spiking by restricting annual increases in creditable compensation for retirees. The bill applies to employees retiring on or after January 1, 2018, and retroactively to those retiring after July 1, 2022. It limits increases to 10% annually over the preceding year's compensation, excluding certain circumstances like bona fide promotions or career advancements. The bill also mandates refunds of employee contributions and interest for reduced compensation, while employer contributions will be used to reduce pension fund unfunded liabilities.

Kentucky HB220 addresses pension spiking by limiting annual increases in creditable compensation for retirees.

Kentucky HB220 modifies pension spiking by restricting annual increases in creditable compensation for retirees. The bill applies to employees retiring on or after January 1, 2018, and retroactively to those retiring after July 1, 2022. It limits increases to 10% annually over the preceding year's compensation, excluding certain circumstances like bona fide promotions or career advancements. The bill also mandates refunds of employee contributions and interest for reduced compensation, while employer contributions will be used to reduce pension fund unfunded liabilities.