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Welcome to the fall edition of PENSION INSIGHTS, the official newsletter for members and retirees of CERS, KERS, and SPRS.
In this issue, you’ll find articles about:
- Insurance Open Enrollment for Plan Year 2022;
- Temporary Reemployment Rule Changes;
- How to view your Member Annual Statement online;
- Strong investment returns, and what that means for Tier 3 participants;
- The upcoming KERS Trustee elections;
- How retirees can change the beneficiary of their retirement accounts under certain conditions;
- And much more!
I just had my fifth anniversary as the Executive Director of KPPA. Little did I know when I first agreed to be a Trustee in April, 2016 I would be asked to be the Executive Director that September.
Prior to that I had been in the private sector my entire career. I had no idea of the rewards of being in a public service position like that of working for you at KPPA. I have come to learn what many of you have probably known for a long time; a career in public service can be very gratifying: it is a culture, and it is contagious. I talk to staff members all of the time who tell me how rewarding they see their jobs, no matter what they are doing at KPPA. Every one of our 250 employees plays a role, either in collecting the $2 billion in employer and employee contributions each year, investing the $22 billion in assets, answering over 272,000 member inquiries annually, processing the 133,000 monthly benefit payments, communicating to our various constituents, meeting all of the accounting and auditing requirements, hiring the staff to manage the Systems, maintaining the facilities, or using our legal expertise to protect our members and their assets.
The necessity of working remotely during the pandemic has actually opened a new avenue of service to our members. Now, rather than making a trip to Frankfort or submitting everything in Self Service, members can meet with a counselor face-to-face on a video call, from the comfort and safety (COVID-wise) of their own home or office. What we initially thought of as an inconvenience has been so well-received that we are adapting our service model to begin regularly including this as a counseling option.
I love to get compliments from members about how well they are being served. I also realize there may be areas where we can do better and I prefer you let us know if that is the case. Don’t let a bad experience or good idea go unreported. My email is david.eager@kyret.ky.gov.
Thank you.
David L. Eager
 Executive Director
*Important Insurance Information*
Open Enrollment for Plan Year 2022
Open Enrollment for retirees not eligible for Medicare is October 1 – October 31, 2021. General information for the Kentucky Employees’ Health Plan will be mailed to retirees later this month and detailed information will be available on the KPPA website at the same time. An online enrollment form is only required if you would like to change your coverage for 2022. If this applies, you must submit an online enrollment form through Retiree Self Service during October. Open Enrollment for Medicare eligible retirees is October 25 – November 30, 2021. Retirees will receive Open Enrollment information from Humana mid-October.
Enrollment is not required this year. If you do not submit an enrollment form, you will continue with the same health insurance benefit for 2022 as you have for 2021. This applies to all insurance plans (Medicare and non-Medicare). If you want to make a change for 2022, you must submit an enrollment form during Open Enrollment to change your coverage next year.
Our Retiree Health Care team is available by virtual appointment, email and phone. Retirees are encouraged to follow us on social media and check our website for updates.
Senate Bill 1 passed during the 2021 Special Session makes temporary changes to reemployment rules for retirees who have an effective retirement date on or before August 1, 2021 and reemploy with a school board in specific positions. These changes took effect on September 9, 2021. To learn more, read our FAQ.
If you are a hazardous duty retiree, you must submit a Form 6256 to receive insurance premium contributions for your spouse and eligible dependents. The form can be submitted with your online enrollment or you may upload the form using the Documents feature in Self Service. Form 6256 must be submitted to KPPA by November 30, 2021 for Plan Year 2022.
Fiscal Year 2021 Annual Statements are now available on Member Self Service for all active and inactive members. Your Annual Statement provides a snapshot of your account including contributions, interest and estimated retirement benefits as of June 30th.
KPPA is partnering with YesElections to offer electronic voting in the next board election. Online voting is highly encouraged during the 2022 KERS Board of Trustees election. It is a secure and efficient way to cast your vote. Please verify or update your email address at MyRetirement.ky.gov to vote online.
If you prefer to vote by mail, you have three ways to request a paper ballot:
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Online: Log in to your account at MyRetirement.ky.gov.
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In Writing: The request must include your Name, Member ID or last 4 digits of SSN, and signature. Mail your request to KPPA at 1260 Louisville Road, Frankfort, KY 40601.
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By Phone: Call 1-800-928-4646. You will need your KPPA issued Personal Identification Number (PIN) to make your request by phone.
Members preferring to vote by mail must request a paper ballot between November 1st and the November 30th deadline. For more information about the 2022 KERS Election, visit our Board Elections page.
Total Assets Now $22.7 Billion
Kentucky’s pension and insurance funds for state and local government employees and the State Police collectively earned an investment return of 25% net of fees for the fiscal year ended June 30.
Last year’s performance also marks the highest single-year investment return in the history of the organization, eclipsing the 24% return recorded in 1997.
For more information, read the KPPA news release.
Tier 3 covers members who began participation on or after January 1, 2014. At the end of each fiscal year, Tier 3 members receive a guaranteed 4% interest plus an additional interest credit based on the KPPA’s 5-year average geometric investment return. Strong fiscal year investment returns boosted total interest earned and credited for Tier 3 member accounts for the fiscal year ended June 30, 2021:
County Employees Retirement System Nonhazardous
8.76%
County Employees Retirement System Hazardous
8.90%
Kentucky Employees Retirement System Nonhazardous
7.96%
Kentucky Employees Retirement System Hazardous
8.74%
State Police Retirement System
8.25%
For more information about Tier 3, visit our Cash Balance Plan page. For more information about how benefits are calculated, visit our Benefit Calculation page.
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