Kentucky legislation · 2026 Regular Session
Kentucky SB85: AN ACT relating to designating a special needs trust to receive state-administered retirement benefits.
Status: Signed into law, April 3, 2026
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 tr
What the bill says
An act relating to designating a special needs trust to receive state-administered retirement benefits.
From the introduced text:
AN ACT relating to designating a special needs trust to receive state-administered retirement benefits. Be it enacted by the General Assembly of the Commonwealth of Kentucky: Section 1. KRS 16.505 is amended to read as follows: As used in KRS 16.505 to 16.652, unless the context otherwise requires: (1) "System" means the State Police Retirement System created by KRS 16.505 to 16.652; (2) "Board" means the board of trustees of the Kentucky Retirement Systems; (3) "Employer" or "State Police" means the Department of Kentucky State Police, or its successor; (4) "Current service" means the number of years and completed months of employment as an employee subsequent to July 1, 1958, for which creditable compensation was paid by the employer and employee contributions deducted except as otherwise provided; (5) "Prior service" means the number of years and completed months of employment as an employee prior to July 1, 1958, for which creditable compensation was paid to the employee by the Commonwealth. Twelve (12) months of current service in the system are required to validate prior service; (6) "Service" means the total of current service and prior service; (7) "Accumulated contributions" at any time means the sum of all amounts deducted from the compensation of a member and credited to his or her individual account in the member's account, including employee contributions …
Sponsors
- Robin Webb (R, SD-018) · primary sponsor
- Danny Carroll (R, SD-002)
Latest actions
- : signed by Governor (Acts Ch. 18)
- : delivered to Governor
- : enrolled, signed by Speaker of the House
- : enrolled, signed by President of the Senate
- : received in Senate
- : 3rd reading, passed 90-0
- : posted for passage in the Regular Orders of the Day for Friday, March 27 2026
- : 2nd reading, to Rules
- : reported favorably, 1st reading, to Calendar
- : to State Government (H)
Votes
- House: Pass RCS# 351 (March 27, 2026): 90 yea, 0 nay, passed
- Senate: PASS SB 85 RSN# 3834 (February 18, 2026): 36 yea, 0 nay, passed
Subjects: State Agencies, Teachers, Retirement And Pensions, Actuarial Analysis, Judges And Court Commissioners, Public Officers And Employees
Common questions
- What is SB85?
- SB85 is a bill in the Kentucky Legislature (2026 Regular Session): AN ACT relating to designating a special needs trust to receive state-administered retirement benefits.
- What does SB85 do?
- In its own words: An act relating to designating a special needs trust to receive state-administered retirement benefits.
- What is the status of SB85?
- Signed into law as of April 3, 2026. Latest action: signed by Governor (Acts Ch. 18) (April 3, 2026).
- Who sponsored SB85?
- Robin Webb (R, SD-018), with 1 co-sponsor.
- Where is the official record for SB85?
- On the Kentucky Legislature website: https://apps.legislature.ky.gov/record/26rs/sb85.html
Source: official Kentucky record. Tracked by Delilah, AI for legislation across all 50 states and Congress.