KERS and SPRS Employer Contribution Rates

KRS 16.645, 61.565 and 78.545 require the Board of Trustees of Kentucky Retirement Systems to determine the employer contribution rates based on an actuarial valuation. The most recent actuarial valuation was performed June 30, 2008, and the following KERS and SPRS employer rates effective July 1, 2009, have been recommended and adopted as a result of the actuarial valuation and actions of the 2009 Regular Session of the General Assembly:

Employer contribution rates for the Kentucky Employees Retirement System and the State Police Retirement System are subject to budget approval by the General Assembly.

*In accordance with KRS 61.565, the rates listed below were recommended by the board's actuary:
KERS Nonhazardous – 31.29%;
KERS Hazardous – 35.54%
SPRS – 61.87%.

Please note however, the KERS and SPRS rates were established in the 2008-2010 Executive Branch Budget enacted as HB 406 during the 2008 session of the Kentucky General Assembly. All rates will become the effective contribution rates effective on July 1, 2009.

CERS Employer Contribution Rates

During the 2009 Regular Legislative Session, the Kentucky General Assembly amended KRS 16.645 to require the KRS Board of Trustees to establish employer contribution rates for the County Employees Retirement System that will phase in to the full actuarially required contribution for the health insurance fund over a ten (10) year period using the 2007-2008 fiscal year employer contribution for health insurance fund as a base employer rate and incrementally increasing the employer rate from fiscal year 2008-2009 through fiscal year 2017-2018. In conformance with the requirements of KRS 16.645, as amended, and as recommended by the Systems’ actuary, the KRS Board met on April 2, 2009 and re-established the CERS employer rates for 2009-2010 as follows:

These CERS employer contribution rates will become effective July 1, 2009.