Officials on the Public Pension Oversight Board recently heard comments from law enforcement officers concerning unfiled legislation that would increase health benefits for the County Employee Retirement System, or CERS.
Senator Robby Mills would be the sponsor of the bill, should it be filed. He said he’s worked with officials at various levels across the state to figure out a way to enhance the benefits current and retired workers get.
“We’re balancing the interests of retirees, while also ensuring that liabilities are addressed, and employer cost risks are limited by including provisions in the bill that create a shared cost structure between employer and employees to pay for this enhanced benefit,” said Mills.
Mills said his bill would increase subsidies so that a non-hazardous employee could receive a full subsidy after 27 years, and hazardous after 20. This would work by drawing down surpluses in the overfunded CERS health insurance trust fund and by increasing employee contributions to health insurance.
Jeremy Thompson with the Kentucky Association of Chiefs of Police, said the pool of people interested in following his career path is dwindling, but that this would be a good form of incentive to younger individuals.
“The health insurance was one of the big, driving factors, I know it was for me in my time in law enforcement. And I think what this will enable us to do is provide more light at the end of the tunnel for those current employees to help retain them, and then for the new employees, for that small group still interested in going out and protecting the citizens of our Commonwealth, this will allow them the understanding on the front end, that there is light at the end of that tunnel,” said Thompson.
Thompson said this would also be a way to help current retirees, as the changes would be retroactive and benefit all current and former workers who retire through the system. The bill makes no changes to subsidiaries for KRS/Police retirees, and, if enacted, the bill would create a vast disparity in the health insurance premiums costs between CERS and KRS retirees.
This would also incentivize previously retired workers to return from retirement, helping to pad a shrinking workforce.