AN ACT relating to actuarial costs of annual leave payments in the Teachers' Retirement System.

Amend KRS 161.540 to specify payment obligations for the inclusion of annual leave payments in a retiring member's pension benefits from the Teachers' Retirement System (TRS) by requiring the state to pay the actuarial costs for annual leave accrued through July 31, 2026, and the last employer pay the actuarial costs for annual leave accrued on or after August 1, 2026.

Education, Elementary and Secondary Retirement and Pensions Teachers Education, Higher Universities and Colleges Actuarial Analysis

Introduced: January 27, 2026

Last action: April 15, 2026

To Appropriations & Revenue (H)

Read the full text Kentucky Legislature LegiScan

AI-generated — always verify with primary sources

Plain-language summary

Beta

This bill clarifies who pays certain retirement-related costs when a teacher retires with unused annual leave. For leave built up through July 31, 2026, the state would cover those costs, while leave accrued after that date would be the financial responsibility of the teacher's most recent employer. Who it may affect: retiring teachers in the Kentucky Teachers' Retirement System and the school districts or other institutions that employ them.

Open official bill text (PDF)·Report a problem with the summary