{"data":{"id":"us-ky/krs-161.550","jurisdiction":"us-ky","citation":"KRS 161.550","heading":"Contribution to system by employers and state -- Contributions to pension,","body":"medical insurance, and life insurance funds.\n(1) Each employer, except as provided in KRS 161.552 and 161.555, shall contribute\nannually to the Teachers' Retiremen t System a permanent employer contribution\nrate on behalf of each employee it employs equal to:\n(a) Thirteen and one hundred five thousandths percent (13.105%) of the total\nannual compensation of nonuniversity members who become members prior\nto July 1, 2008. Of this permanent employer contribution rate:\n1. Twelve and three hundred fifty -five thousandths percent (12.355%) of\nthe total annual compensation shall be used to fund pension and life\ninsurance benefits; and\n2. Except as provided in KRS 161.552, th ree-quarters of a percent (0.75%)\nof annual compensation shall be used to provide funding to the medical\ninsurance fund as provided under KRS 161.420(5). If the board of\ntrustees establishes a trust fund under 26 U.S.C. sec. 115, the board may\ndeposit the employer contribution provided in this subparagraph in that\ntrust fund except as provided in KRS 161.552;\n(b) Fourteen and one hundred five thousandths percent (14.105%) of the total\nannual compensation of nonuniversity members who become members on or\nafter July 1, 2008, but prior to January 1, 2022. Of this permanent employer\ncontribution rate:\n1. Thirteen and three hundred fifty -five thousandths percent (13.355%) of\nthe total annual compensation shall be used to fund pension and life\ninsurance benefits; and\n2. Except as provided in KRS 161.552, three -quarters of a percent (0.75%)\nof annual compensation shall be used to provide funding to the medical\ninsurance fund as provided under KRS 161.420(5). If the board of\ntrustees establishes a trust fund under 26 U.S.C. sec. 115, the board may\ndeposit the employer contribution provided in this subparagraph in that\ntrust fund except as provided in KRS 161.552;\n(c) Thirteen and sixty -five hundredths percent (13.65%) of the total annual\ncompensation of university me mbers who become members prior to January\n1, 2022. Of this permanent employer contribution rate:\n1. Ten and eight hundred seventy -five thousandths percent (10.875%) of\nthe total annual compensation shall be used to fund pension and life\ninsurance benefits; and\n2. Except as provided in KRS 161.552, two and seven hundred seventy -\nfive thousandths percent (2.775%) of annual compensation shall be used\nto provide funding to the medical insurance fund as provided under KRS\n161.420(5). If the board of trustees establishes a trust fund under 26\nU.S.C. sec. 115, the board may deposit the employer contribution\nprovided in this subparagraph in that trust fund except as provided in\nKRS 161.552;\n(d) Ten and three -quarters percent (10.75%) of the total annual compensation of\nnonuniversity members who become members on or after January 1, 2022. Of\nthis permanent employer contribution rate:\n1. Eight percent (8%) of the total annual compensation shall be used to\nfund pension and life insurance benefits. The contribution provided by\nthis subparagraph shall not be used to fund the supplemental benefit\naccount as provided by KRS 161.635;\n2. Two percent (2%) of the total annual compensation shall be used to fund\nthe mandatory employer contribution of the supplemental benefit\ncomponent, except that the board may direct these contributions on a\nprospective basis into the pension a nd life insurance funds to contain\ncosts within the provisions of KRS 161.633; and\n3. Except as provided in KRS 161.552, three -quarters of one percent\n(0.75%) of annual compensation shall be used to provide funding to the\nmedical insurance fund as provide d under KRS 161.420(5). If the board\nof trustees establishes a trust fund under 26 U.S.C. sec. 115, the board\nmay deposit the employer contribution provided in this subdivision in\nthat trust fund except as provided in KRS 161.552; and\n(e) Nine and seven hu ndred seventy -five thousandths percent (9.775%) of total\nannual compensation of university members who become members on or after\nJanuary 1, 2022. Of this permanent employer contribution rate:\n1. Five and seven hundred seventy -five thousandths percent (5.7 75%) of\nthe total annual compensation shall be used to fund pension and life\ninsurance benefits. The contribution provided by this subparagraph shall\nnot be used to fund the supplemental benefit account as provided by\nKRS 161.636;\n2. Two percent (2%) of the total annual compensation shall be used to fund\nthe mandatory employer contribution of the supplemental benefit\ncomponent, except that the board may direct these contributions on a\nprospective basis into the pension and life insurance funds to contain\ncosts within the provisions of KRS 161.634; and\n3. Except as provided in KRS 161.552, two percent (2%) of annual\ncompensation shall be used to provide funding to the medical insurance\nfund as provided under KRS 161.420(5). If the board of trustees\nestablishes a trust fund under 26 U.S.C. sec. 115, the board may deposit\nthe employer contribution provided in this subparagraph in that trust\nfund except as provided in KRS 161.552.\n(2) In addition to the required contributions in subsection (1) of this section, th e state\nshall contribute annually to the Teachers' Retirement System a percentage of the\ntotal salaries of the state -funded and federally funded members it employs to pay\nthe cost of health insurance coverage for retirees who are not eligible for Medicare\nand who retire on or after July 1, 2010, less the amounts that are otherwise required\nto be paid by the retirees under KRS 161.675. The board shall deposit funds in the\nmedical insurance fund unless the board of trustees has established a trust fund\nunder 26 U.S.C. sec. 115 for this purpose. In this case, the board may deposit the\nemployer contribution in that trust fund. This contribution shall be known as the\nstate medical insurance fund stabilization contribution. The percentage to be\ncontributed by the state under this subsection:\n(a) Shall be determined by the retirement system's actuary for each biennial\nbudget period;\n(b) May be suspended or adjusted by the General Assembly if in its judgment the\nwelfare of the Commonwealth so demands; and\n(c) Shall not exceed the lesser of the actual benefit cost for retirees not eligible\nfor Medicare who retire on or after July 1, 2010, or the amount contributed by\nemployers under subsection (3) of this section.\n(3) All employers who employ nonuniversity members shal l make a contribution for\neach payroll on behalf of their active employees who participate in the Teachers'\nRetirement System in an amount equal to three percent (3%) of payroll of those\nactive employees. Except as provided in KRS 161.552, the contribution  specified\nby this subsection shall be used to fund retiree health benefits.\n(4) When the funds established to actuarially fund pension annuities and the medical\ninsurance fund established under KRS 161.420 become fully funded as determined\nby the annual a ctuarial valuation, the board of trustees shall recommend to the\nGeneral Assembly that the contributions required under subsections (1)(c)2. and\n(e)3. and (3) of this section shall, in an actuarially accountable manner, be either\ndecreased, suspended, or e liminated. The decrease, suspension, or elimination in\ncontributions required under subsection (1)(c)2. of this section shall not exceed two\nand twenty -five thousandths percent (2.025%) of annual compensation. The\ndecrease, suspension, or elimination in co ntributions required under subsection\n(1)(e)3. of this section shall not exceed one and twenty -five hundredths percent\n(1.25%) of annual compensation.\n(5) Each employer shall remit the required employer contributions to the retirement\nsystem under the term s and conditions specified for member contributions under\nKRS 161.560. The state shall provide annual appropriations based upon estimated\nfunds needed to meet the requirements of KRS 161.155, 161.168, 161.507(4),\n161.515, 161.545, 161.605, 161.612, and 161 .620(1), (3), (5), (6), and (7). In the\nevent an annual appropriation is less than the amount of these requirements, the\nstate shall make up the deficit in the next biennium budget appropriation to the\nretirement system. Employer contributions to the retir ement system are for the\nexclusive purpose of providing benefits to members and annuitants and these\ncontributions shall be considered deferred compensation to the members. This\nsubsection shall not apply to costs applicable to individuals who become membe rs\non or after January 1, 2022.","path":["KRS Chapter 161"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56467","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:11Z","sha256":"a3ae6a0e5db25e190746c83681622b3c2c0d1de65a929cb4c4a474b2d2649e59","source_id":"us-ky","stale":false,"prev":"us-ky/krs-161.549","next":"us-ky/krs-161.552"},"notice":"GroundRules: Original legal text. Not legal advice."}