KASS Urges Senate to Pause on HB 694
February 28, 2025
KASS Urges Senate to Pause on HB 694
Dear Senator,
We urge the Senate to NOT move HB694 during the short session and allow a collaborative process with public education stakeholders during the interim. This will honor the collaborative process that made HB540 of 2010 a success by ensuring all stakeholders have adequate time to review, understand, and provide feedback on the proposed changes before any vote occurs on HB694. The strength of the original legislation came from its inclusive approach—let's maintain that proven tradition of shared responsibility.
Our Position
We respectfully request the Kentucky General Assembly provide stakeholder feedback and input prior to final passage on HB694 that proposes changes to the Teacher Retirement System Medical Insurance Trust Fund (MITF) and the “Shared Responsibility” Plan approved in HB540 of 2010. We believe this will be best discussed during the interim since the MITF is several years from full funding.
Background: A Legacy of Successful Collaboration
The 2010 House Bill 540, known as "Shared Responsibility for Retiree Health Insurance," stands as a model of effective legislative collaboration. This landmark legislation succeeded precisely because it brought together all affected parties—legislators, school districts, and certified employees—to develop a sustainable solution.
According to TRS projections, the MITF is only 3-4 years away from reaching 100% funding—clear evidence that the original collaborative approach is working as designed. This funding status provides ample time for thorough stakeholder review of any proposed changes.
Our Concern:
The current proposal makes significant departures from the original shared responsibility framework of HB540 of 2010, yet affected stakeholders have had minimal opportunity to:
- Fully understand the financial implications of the proposed changes
- Provide informed feedback on potential unintended consequences
- Suggest possible refinements that maintain the collaborative spirit of the original legislation
Request for Action
We ask that the General Assembly:
- Pause consideration of HB694.
- Convene meetings with all stakeholder groups who participated in the 2010 solution.
- Provide detailed analysis of how the proposed changes would affect the long-term stability of the fund and those groups contributing to its funding and any possible legal implications for shifting district funding from the MITF to the TRS Pension.
- Allow a reasonable comment period for affected parties to respond.
- Consider clarification that the normal costs to maintain the MITF will be continued upon achieving full funding (100%) which is currently 2.01%.
- Consider reducing employee contributions to 2.01 upon full funding to the MITF which would result in a reduction of 1.74% from the current level of 3.75%. As an example, a teacher making $50,000 per year would get $870 back into their salary adding another step in improving the earnings of our educators to help recruit and retain high quality professionals working with and around our students.
We believe that we are better when we work together to find common solutions to these issues and are better able to serve our students, teachers, school districts, and the Commonwealth with an approach like this.
December 6-8 at the Louisville Marriott Downtown Organizations that support Kentucky public school districts can now register to exhibit, sponsor, or join as a Preferred Partner at the 2026 KASS Annual Conference, December 6-8 at the Louisville Marriott Downtown. The Annual Conference is the largest KASS gathering of the year, bringing Kentucky's school superintendents together for professional learning, peer connection, and conversation about the work ahead for their districts. For superintendents, the partners in the room are part of that work. For organizations, it is a direct and personal way to understand what district leaders need. What This Conference Means for Districts and Partners Kentucky's superintendents are the chief decision-makers for districts across the Commonwealth. They are accountable for governance, operations, and long-term student outcomes, and they come to KASS events to learn alongside peers and find partners who can help them do the job well. Because KASS is the state organization dedicated solely to superintendents, partners at the Annual Conference are in the room with the leaders who set direction and shape priorities for their districts. This year's conference theme is The Power of Possibility: Empowering Learners. Igniting Innovation. Transforming Education. Conference at a Glance
The KASS Fall Superintendents Summit brings Kentucky district leaders together September 8–9 in Lexington for focused conversation and peer connection. Limited sponsorship opportunities available for organizations committed to Kentucky public education.
Join Kentucky superintendents at the KASS Summer Summit in Lexington. Limited sponsorship opportunities available for meaningful, relationship-driven engagement.
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