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SB 85 KY
Became Law

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

KY · session 2026RS · Senate · bill

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Introduced Jan 13, 2026

Latest action (Apr 3, 2026) signed by Governor (Acts Ch. 18)

Summary

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 the beneficiary of a lifetime retirement benefit; require the trustee of a SNT to notify the Kentucky Public Pensions Authority (KPPA) upon the death of the beneficiary of a SNT and repay any payment not properly payable to the SNT; allow KPPA to promulgate administrative regulations to administer the SNT provisions; amend KRS 61.640 to allow a SNT to receive a lifetime retirement payment if a member dies before retirement; amend KRS 61.690 to allow a recipient or legal representative to direct retirement benefits to be paid to a SNT and clarify that it is not an assignment or transfer; amend KRS 78.5532 to allow a SNT to receive a lifetime retirement benefit if a member dies before retirement; amend KRS 161.525, relating to the Teachers' Retirement System (TRS) to allow a SNT to receive a lifetime annuity if a member dies before retirement; amend KRS 161.640 to allow checks to be sent by mail to the trustee of a SNT; require the trustee to notify the TRS upon the death of the beneficiary; require any payments not properly payable to the SNT to be repaid to TRS; allow TRS to promulgate administrative regulations to administer the SNT provisions; amend KRS 161.700 to require TRS to assign annuity payments to a SNT, issue payments to the trustee, and prevent annuity payments from being used to reimburse any state for any Medicaid benefits paid on behalf of the beneficiary of a SNT; amend KRS 21.420, relating to the Judicial Retirement Plan, to allow for a SNT to be selected as a beneficiary, and define "special needs trust"; amend KRS 21.425 to allow a member to designate a SNT to receive lifetime survivorship benefits on behalf of a surviving spouse, dependent child, or disabled child.

Sponsors (2)

Action history (19)

  1. Jan 13, 2026 introduced in Senate · upper
  2. Jan 13, 2026 to Committee on Committees (S) · upper
  3. Feb 2, 2026 to State & Local Government (S) · upper
  4. Feb 4, 2026 reported favorably, 1st reading, to Calendar · upper
  5. Feb 5, 2026 2nd reading, to Rules · upper
  6. Feb 13, 2026 posted for passage in the Regular Orders of the Day for Wednesday, February 18 2026 · upper
  7. Feb 18, 2026 3rd reading, passed 36-0 · upper
  8. Feb 19, 2026 received in House · lower
  9. Feb 19, 2026 to Committee on Committees (H) · lower
  10. Mar 16, 2026 to State Government (H) · lower
  11. Mar 19, 2026 reported favorably, 1st reading, to Calendar · upper
  12. Mar 20, 2026 2nd reading, to Rules · upper
  13. Mar 26, 2026 posted for passage in the Regular Orders of the Day for Friday, March 27 2026 · upper
  14. Mar 27, 2026 3rd reading, passed 90-0 · upper
  15. Mar 27, 2026 received in Senate · upper
  16. Mar 27, 2026 enrolled, signed by President of the Senate · upper
  17. Mar 27, 2026 enrolled, signed by Speaker of the House · lower
  18. Mar 27, 2026 delivered to Governor · upper
  19. Apr 3, 2026 signed by Governor (Acts Ch. 18) · upper
Subjects
Actuarial AnalysisJudges And Court CommissionersPublic Officers And EmployeesRetirement And PensionsState AgenciesTeachers

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