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SB 85

Kentucky Senate bill in Session 26RS.

Status: enacted. Latest action: April 3, 2026.

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

Bill ID KY-26RS-SB-85
Session 26RS
Status enacted
Senate enacted 2026-04-03
Healthcare Public Safety
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."

Sponsor
Robin L. Webb
Official Source Back to Bills
Actions Timeline
Date Event Detail
2026-01-13 Introduced Bill introduced
2026-04-03 Status enacted
2026-04-03 Latest Action 04/03/26: signed by Governor (Acts Ch. 18)
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