The County Employees Retirement System (CERS) Board of Trustees met on December 5, 2022 and adopted CERS employer contribution rates for Fiscal Year (FY) 2024. These rates are effective July 2023 and were set in accordance with Kentucky Revised Statute (KRS) 78.635(4) which caps CERS employer contribution rate increases up to 12% over the prior fiscal year for the period of July 1, 2018 to June 30, 2028.
Pursuant to KRS 61.5991, effective July 1, 2022 the normal cost contribution rate for Kentucky Employees Retirement System (KERS) Nonhazardous employers changed from 10.10% to 9.97%. The normal cost contribution of 9.97% was approved by the General Assembly in the biennial Executive Branch budget bill; therefore, the 9.97% rate will remain the same for FYs 2023-2024. In addition, please note that the Actuarially Accrued Liability Contribution payment will not change from FY 2023 to FY 2024 due to the biennial budgeting. Learn more on the
Contribution Rates page.
House Bill 8 overview and actuarial analysis
Annual Employer Certification of Non-Contributing Service Providers
Pursuant to KRS 61.5991 and 105 KAR 1:415E, some KERS Nonhazardous employers were required to report specific individuals to the Kentucky Public Pensions Authority (KPPA) annually, beginning with FY 2021-2022. For FY 2022-2023, KPPA must receive the Form 6756, Annual Employer Certification of Non-Contributing Service Providers, and required documentation
on or before April 17, 2023.
Employers shall include a copy of each contract which has not already been reviewed by KPPA between the employer and any independent contractor/third party, staffing company or other non-participating entity and any other documentation explaining the services provided by each person serving as an independent contractor/third party, staffing company or other non-participating entity. Contracts that otherwise met an exemption under KRS 61.5991 and, accordingly, were not listed on any previously submitted Form 6756s, must still be submitted. Contracts that were previously approved by KPPA shall be submitted if there have been subsequent modifications.
If a quasi-governmental employer contracts for any additional persons to provide services as core services independent contractors, core services leased employees, or through any other employment arrangement after the submission of Form 6756, but prior to the end of the fiscal year, the quasi-governmental employer shall file at the retirement office a completed supplemental Form 6756 reflecting only those persons not previously reported on the initial Form 6756. The supplemental Form 6756 shall be filed at the retirement office
on or before June 30, 2023.
If you have any questions regarding this, or the deadline, please submit them to D'Juan Surratt, Director of Employer Reporting, Compliance and Education.
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Employer Reporting Manual
Our Employer Reporting Manual provides a comprehensive overview of the reporting process. You can find it by visiting our Employer Reporting Manual page.
Termination Dates Impact on Retirement and Refund Eligibility
Federal and state law both require a bona fide separation from service with all employers participating in the Kentucky Retirement Systems (KRS) and CERS, and, in some cases, entities affiliated with participating employers in order for KPPA to pay a retirement benefit or to pay a refund of a retirement account.
To receive a retirement or refund payment from KPPA, an individual must certify that they have had or will have a separation from service with agencies participating in KPPA or entities affiliated with participating agencies. The term "separation from service" means a complete severance of any kind of employment relationship with agencies participating in KPPA, or entities affiliated with participating agencies.
Individuals receiving refund payments who fail to comply with federal and state law regarding bona fide separation from service will be required to repay all refunded contributions paid in error.
Retirement benefits paid to individuals who fail to comply with federal and state law regarding bona fide separation from service shall be voided, resulting in repayment of all retirement allowances, dependent child payments, and health plan premiums paid by KPPA.
KRS 61.637 and 78.5540 provide exceptions for individuals employed in some specific positions. Any current or future part-time adjunct instructor for the Kentucky Fire Commission who has not participated in KERS prior to retirement, but who is otherwise eligible to retire from CERS is not required to resign from his or her position as a part-time adjunct instructor for the Kentucky Fire Commission to begin drawing benefits from CERS.
Additionally, an individual holding the position of Mayor or Member of a City Legislative Body who is at least 62 years of age and eligible to retire from CERS is not required to resign from his or her position as Mayor or Member of a City Legislative Body to begin drawing benefits. The member cannot accumulate any additional benefits after the member's effective retirement date, or he or she may forfeit his or her initial retirement benefits. The member does not have to resign as Mayor or as a Member of a City Legislative Body if the member has not participated in CERS prior to retirement, regardless of age.