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 "beneficiary" to include a SNT; amend KRS 16.578 to allow a SNT to receive a lifetime retirement payment if a member dies before retirement; amend KRS 61.635 to allow a person who is the beneficiary of a SNT to be designated as…

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

In effect since July 15, 2026

Acts from the 2026 Regular Session that don't carry an emergency clause or set their own effective date took effect 90 days after the session adjourned (Ky. Constitution § 55).

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This bill allows members of Kentucky's public retirement systems, including state employees, teachers, police, county workers, and judges, to name a special needs trust as the beneficiary of their retirement or survivor benefits. A special needs trust is a legal tool that holds money for a person with disabilities in a way that can protect their eligibility for government assistance programs like Medicaid. The bill sets rules for how these trusts receive payments, how trustees…

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