AN ACT relating to designating a special needs trust to receive state-administered retirement benefits.

Amend KRS 16.505, 61.510, and 78.510 to define "special needs trust" (SNT) for purposes of the State Police Retirement System, Kentucky Employees Retirement System, and County Employees Retirement System; amend the definition of "person" to include a SNT, and amend the definition of "beneficiary" to exclude sole beneficiary of a SNT; amend KRS 16.578 to allow a SNT to receive a lifetime retirement benefit; amend KRS 61.623 to allow a trustee to receive checks on…

Actuarial Analysis Judges and Court Commissioners Public Officers and Employees Retirement and Pensions State Agencies Teachers

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This bill would allow Kentucky public employees, teachers, state police officers, and judges to name a special needs trust as the beneficiary of their state retirement benefits. A special needs trust is a legal tool that holds money for a person with disabilities without disqualifying them from government assistance programs like Medicaid. The bill sets rules for how retirement systems would handle payments to these trusts, including notification requirements when a trust beneficiary dies. Who…

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