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From YouTube: Public Pension Oversight Board (9-27-22)
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A
D
A
I
believe
we
do
have
a
quorum.
You
should
have
the
minutes
of
the
August
22nd
2022
meeting
in
your
packet
for
your
review.
If
you've
had
a
chance
to
review
those
do
I.
Have
a
motion
to
approve
have
motion
by
you.
Representative
Plessy
is
their
second
to
that
motion
by
representative
Weber.
If
there's
no
discussion,
all
in
favor
say
aye
any
pose.
No,
the
motion
passes.
The
minutes
are
approved,
we'll
go
right
in
our
agenda
today.
A
First
item
on
our
agenda
is
a
subject.
We
have
Senator
Thayer
in
the
room
with
us
good
to
have
him
with
us.
It
worked
out
just
right,
Senator
Thayer.
We
just
got
through
roll
calling
minutes,
so
you
haven't
missed
anything
important,
but
their
first
time
on
their
gender
is
a
report
from
the
Deferred
Compensation
Authority
up
to
update,
giving
us
an
update.
This
is
something
I
know.
Senator
Higgins
had
a
great
interest
in
in
the
past,
so
we're
glad
to
have
them
here
to
give
us
an
update.
A
So
please
identify
yourselves
for
the
record
make
sure
your
microphone
is
on
the
green
light
is
on
and
please
pull
that
microphone
close
to
you,
because
we
have
a
difficulty
hearing
if
they're
not
close
to
you,
please
identify
yourself
for
the
record,
then
you
may
proceed.
E
E
Just
a
brief
overview
of
Kentucky
Deferred
Comp,
we
offer
457
401k
and
deemed
Ira
plans,
and
we
now
offer
both
pre-tax
and
Roth
in
each
one
of
those.
If
you
look
to
the
list
on
the
left,
that's
the
investment
flexibility
we're
referring
to
that
allows
us
double
buckets,
which
is
very
unique
and
gives
people
a
tremendous
ability
to
defer
their
income.
Also
lower
your
taxes
Best
in
Class
fees.
We
cap
our
fees
at
237
dollars
annually
to
get
that
level
of
fees.
E
You
need
a
six-figure
account,
so
most
are
probably
a
little
bit
below
that
we're
currently
in
a
fee
holiday,
which
means
because
the
market
has
previously
gone
up.
We
collected
more
fees
than
we
need
to
run.
So
we,
the
mechanism,
the
IRS
likes,
is
a
fee
holiday,
so
we're
giving
Millions
back
through
the
end
of
the
year
virtue
and
in
person.
This
is
we're
glad
to
be
back
here
in
person,
but
during
the
pandemic
we
were
able
to
switch
modes
seamlessly
into
a
virtual
environment
but
I'm
happy
to
say
now.
E
We
have
Representatives
all
over
the
state
that
are
doing
in-person
and
employer
visits,
but
and
also
in
the
State
Office
Building.
We
have
a
fully
staffed
office
there
as
well
for
it
walk
in
traffic,
but
we
also
can
come
see
people
virtually
wherever
that
may
be.
Free
financial
planning,
I
won't
spoil
Christina's
presentation,
but
you'll
get
to
hear
about
that
here
later
and
the
benefits
don't
end
at
retirement,
so
most
private
sector,
401K
plans
or
DC
plans.
E
E
Auto
enroll
I'm
very
happy
to
talk
about
Auto
enroll
you
over
instrumental
in
helping
us
get
that
through.
So
let's
talk
about
what
that's
done,
you
can
see
almost
11
000
new
employees
have
been
Auto
enrolled
and
we're
averaging
close
to
300
a
month.
This
next
stat
is
very
unique
in
our
peer
group.
We've
maintained
a
94
retention
rate
from
day,
one
that
has
wavered
within
a
maybe
one
point
or
so,
but
it
has
stuck
very
tight
so
very
happy
to
see
that
and
again
when
we
did
the
auto
enroll,
it's
a
lot
of
psychology.
E
E
So,
as
you
may
recall,
the
minimum
deferral
for
an
auto
enrollee
is
thirty
dollars
per
month,
but
as
of
close
of
this
month,
the
average
is
48.60.
We're
approaching
fifty
dollars
for
the
average
deferral,
which
is
62
percent
above
the
minimum
total
assets
for
this
Auto
and
row
pool
are
approaching
8
million,
that's
7.7
and
so
I
think
they're
getting
the
message
that
they
need
to
invest
in
themselves,
and
this
is
the
way
to
the
place
to
do
it.
E
What
that's
done
on
participant
numbers
I
put
back
the
o5
that
those
are
they
tend
to
dip
before
that.
But
if
you
can
see
the
ebony
and
flowing
of
the
numbers
when
Auto
enroll
comes
in,
you
can
see
a
steady
uptick
and
there
are
lots
of
reasons
for
that.
F
F
F
Our
goal
is
to
help
participants
answer
the
fundamental
question:
will
I
have
enough
money
in
retirement
to
do
the
things
I
want
to
do
to
answer
this
question?
We
use
household
financial
information,
including
assets,
liabilities,
income
and
expenses
to
complete
a
cash
flow
and
a
Monte
Carlo
statistical
analysis.
F
F
F
F
F
F
Our
meetings
typically
generate
an
almost
audible,
sigh
of
relief
and
results
in
in
very
happy
participants,
even
when
they
realize
that
there's
work
to
do
it's
very
unusual
for
participants
to
be
able
to
get
this
type
of
analysis
and
guidance
without
either
paying
thousands
of
dollars
having
thousands
of
dollars
to
invest
or
being
sold,
something
for
KDC
members.
This
is
a
free
service.
F
They
almost
always
express
appreciation
and
gratitude
for
the
value
that
we
provide
and
the
service
is
available
to
all
of
you.
The
best
way
to
learn
about
it
is
to
sign
up
and
I
would
love
to
meet
with
with
all
of
you.
So
thank
you
again
for
letting
us
share
our
progress
with
this
important
new
state
benefit.
A
G
Thank
you,
Mr,
chairman
Chris.
Thank
you
and
Christina.
Thank
you
all
for
being
here
in
this
free
service
that
you're
offering
to
employees,
and
maybe
you
said
it
and
I
didn't
catch
it.
How
many,
how
many,
how
many
are
participating
or
how
many
have
participated
in
this
Financial
Service
as
far
as
the
free
service
to
do
their
do
a
financial
plan.
E
E
About
350
this
year,
so
again
it's
new
and
what
we're
trying
to
do
is
market
and
get
the
word
out.
So
if
you
want
to
send
people
our
way,
we
would
be
very
happy
to
speak
with
them.
Well,.
G
That's
that's
good
to
know
when
and
it's
really
exciting
to
see.
What's
happened
with
deferred,
comp
and
and
and
I
remember
when
you
first
came
to
see
me
and
I
was
mad
at
myself,
I
was
probably
in
my
18th
year
and
every
year
every
January
I
said
I'm
I'm,
going
to
sign
up
for
Deferred,
Comp
and
I.
Never
did
do
it,
and
so
I
told
you.
G
We
need
to
do
something
to
help
these
young
employees
new
employees
to
that
they
didn't
make
the
same
mistake
that
that
Jimmy
Higdon
made
and
plan
to
do
it,
but
never
do
it
and
had
a
very
simple
solution.
Instead
of
opt
out,
we
did
an
opt-in
and-
and
thank
you
for
working
with
me
on
that-
and
it's
I
think
it's
in
years
to
come,
be
a
lot
of
a
lot
of
people
very
grateful
that
they
participated
in
Deferred,
Comp.
G
E
Do
I
threw
up
some
of
the
awards
that
we
have
won
and
these
are
in
general,
the
leadership
award
was
basically
a
whole
program
top
to
bottom.
We
redid
our
lineup
and
picked
up
about
5.9
million
in
savings,
removing
duplicative
funds
and
funds
that
were
being
utilized
less
than
one
percent,
so
that
helped
and
the
Eddie
award
is
a
Communications
and
a
marketing
award,
and
that
is
basically
our
webinars.
E
Nationwide,
obviously,
is
our
Record
Keeper
and
they
provide
these
services
to
us
and
we
have
seen
there
there's
not
another
plan
out
of
their
seven
thousand
plans
that
they
do
business
with
that
are
doing
higher
numbers
in
the
webinars
than
Kentucky,
and
so
nagda
is
our.
So
it's
the
National
Association
of
government
to
find
contribution
Association.
E
So
it's
all
of
our
peer
Group,
New,
York
and
California,
and
all
these
larger
plans
with
billions
of
dollars
and
there's
small
ones
in
there
as
well,
but
they're
all
coming
to
us
to
learn
about
what
we're
doing
down
here.
The
you
know
from
the
webinars
to
the
auto
enroll
to
the
financial
planning
and
where
we
differ
on
the
financial
planning.
Just
one
last
comment:
mostly
when
you
see
Financial
Wellness
programs
or
this
type
of
program,
it
focuses
on
50
year
olds
about
10
years
out
from
retirement.
E
E
You
don't
wait
to
the
end
of
the
journey
and
then
try
to
correct
course,
and
so
these
numbers
that
we
saw
spread
throughout
that
Spectrum
with
younger
employees
and
even
retirees
we're
providing
this
across
the
entire
spectrum,
and
so
this
also
falls
into
a
retention
issue
for
the
for
the
Personnel
cabinet.
So
it's
a
benefit.
That's
there
for
you
for
your
entire
career
and
and
after
so
we're
pretty
proud
about
it.
We're
happy
that
we're
being
recognized-
and
we
continue
to
hope
to
do
good
things
for
you.
B
You
don't,
please
have
a
couple
questions
for
him,
sir.
Yes,
sir,
does
you
said,
do
you
do
business
in
other
states
to
oh,
just
Kentucky?
Yes,
sir,
is
there
an
employer
match
in
this
not.
E
Kurt
well
not
with
the
Commonwealth
some
of
the
school
systems
used
to
match
and
they
can
do
that.
We
do
not
offer
the
match
bucket,
but
Nationwide
provides
a
free
employer
bucket
if
you
will
and
provides
similar.
So
we
can
emulate
that
for
people
that
we
do
not
have
control
over
their
payroll,
which
is
we
service,
three
tiers
with
the
state
employees,
K-12,
education
and
local
government,
local
programs,
which
is
City,
County
government
type
things
and
everything
under
that
would
fall
under
that
category.
E
B
Actually,
we
do
at
my
company
to
try
to
get
young
people
into
this.
It's
a
good
way
of
making
100
your
money
back
as
I
reach
closer
to
the
age
of
retirement
and
again
I'm
not
familiar
with
Rosso.
Forgive
me
on
this.
They
I
got
contacted.
I've
got
several
401ks
over
your
companies.
I
work
with
that's
left
them
there.
They
automatically
came
to
me,
sent
me
letters.
Call
me
emailed
me
said
it's
time
to
get
out
of
the
high
risk.
B
E
Incumbent
in
this
Edge,
all
these
webinars
and
the
education
and
and
the
local
reps
are
really
play
that
role
so
again
across
the
state.
There
are
Representatives
spread
out
and
they
make
the
circle
in
their
in
their
little
region
and
they
visit
all
the
employers
on
a
regular
basis,
but
also
on
request,
and
so
yes
and
and
we
it's
in
all
of
our
literature
in
the
quarterly
statements
it's
on
the
website,
we
continually
have
a
very
active
email
campaign
and
I
I
can't
thank
the
cabinet
enough.
E
The
personnel
cabinet
we
used
to
do
this
by
ourselves
and
get
50
to
100
people
to
show
up
to
these
webinars
and
I.
Think
our
record
is
like
maybe
1800
registers
so
again,
there's
not
another
plan
in
the
country
state
wise.
That
is
doing
the
volume
of
webinars
that
we
are
thanks.
Sir,
yes,
sir.
Thank
you.
Mr
chairman.
G
Thank
you,
Mr
chairman.
The
question
gets
to
the
contract
that
exists
with
Nationwide
and
I'm
glad
you
mentioned
that
there,
the
schools
and
local
governments
have
the
op
the
option
to
be
part
of
the
state
program.
Is
it
an
exclusive
contract
so
that
if
a
local
government
wants
to
have
a
Deferred,
Compensation
Program
with
another
entity,
they
would
not
be
permitted
to
do
that
or
is
that.
E
We
see
this
in
education,
primarily
and
and
quite
frankly,
competition
from
the
403
B's,
and
so
there
is
no
prohibition.
Unfortunately,
we
wish
that
there
were
well.
It
becomes
it's
just
a
matter
of
fees.
Quite
frankly,
we
charge
a
hundred
dollars
to
purchase
time
from
the
pension
system.
I've
had
teachers
tell
me
they
had
to
pay
3
400
in
surrender
fees
to
their
403
b
plan.
Now
I
would
submit
to
you
that
that's
not
a
good
deal.
G
No
thank
you
for
that
and
I
used
to
work
for
a
city
where
the
the
response
to
the
firefighters
who
wanted
to
go
to
another
Deferred
Compensation
Program
was
that
we
can't
do
that,
because
the
state
has
a
contract
and-
and
that
was
many
years
ago
and
I,
hopefully
that
contract
no
longer
existed
as
you're
expressing
it
does
not.
So
thank
you
for
that.
A
E
So
as
I
say
you
know,
these
are
brand
new
employees
and
you
know
they're
they're
getting
the
message
and
they're
they're.
Not
only
are
they
getting
the
message
they're
acting
on
that
message,
so
yes,
sir
further
that's
I
tell
Senator
Higdon
I,
don't
want
to
be
raising
it
or
running
an
acorn
farm,
so
we
have
to
grow
these
into
saplings
and
then
trees
and
so
on
and
so
forth.
E
A
A
Our
next
item
on
our
agenda
is
House
Bill,
8
reporting
and
retiree
health
update,
and
we
have
some
folks
from
kppa
here.
Talk
to
us
today.
A
A
I
H
So
you
asked
us
to
speak
on
two
topics
this
morning.
The
first
is
houseplate
reporting
under
Karis
615991,
so
you
asked
us
to
talk
about
the
requirements,
the
process
and
the
results
of
that
reporting
for
the
year.
So
this
is
a
list
if
you
can
call
that
a
list,
a
grouping
of
the
folks
who
are
required
to
report.
Generally
speaking,
it's
the
quasis.
There
are
certain
quasi
agencies
who
are
Exempted
they're
Exempted
under
paragraph
So,
paragraph
8.
In
that
statute,
this
constitutes
102
agencies.
H
The
timeline
that
we
developed
was
to
have
our
agencies
report
the
first,
the
biggest
batch
of
contractors
by
April
15th,
and
then
anybody
hired
between
April,
15th
and
July
would
come
back
in
by
July
30th,
and
then
we
have
to
congrat,
compile
that
information
and
provide
it
to
both
lrc
into
the
office
of
the
state
budget
director
by
the
29th
of
August,
and
then
we'll
notify
employers
of
all
of
that
before
this
September
30th,
although
if
we
found
any
of
their
reported
employees
who
should
have
been
reported
by
contributing
and
should
not
have
just
been
on
the
contract
and
they've
already
been
notified
of
that.
H
So
what
are
they
required
to
report
to
us?
There's
a
typo
under
number
one.
It
says
persons
employed
directly
by
import
persons
not
employed
directly
by
the
employer,
so
we're
looking
at
contractors
leased
employees,
those
kinds
of
things
so
if
they
would,
if
they
were
employed
by
the
employer
directly
than
they
would
have
been
full-time
under
61
510,
so
they're
looking
through
their
contracts
for
the
folks
who
would
have
qualified
had
they
not
been
contractors,
and
then
they
also
have
to
submit
the
contract.
The
exclusions
are
threefold,
set
out
by
that
statute.
H
If
the
contract
was
started
was
begun
prior
to
January
1
of
21,
they
don't
report
those.
If
the
contract
is
for
services
that
were
not
historically
provided
by
employees
of
the
agency,
they
don't
report
those
and
then
the
third
one
is
the
one
at
a
ppob
meeting
prior
to
the
passing
of
the
statute.
The
universities
cared
most
about
this
non-core
services,
so
the
idea
being.
If
these
are
contracts
for
services
that
are
not
core
to
the
duties
of
that
agency,
then
they
don't
have
to
report
those
either.
H
The
incentives
to
them
reporting
are
about
subsidies.
Now.
This
is
not
something
that
kbba
has
responsibility
for,
but
I'm
putting
it
out
here
because
that's
what
was
in
the
statute,
but
we
report
the
data
and
then
obviously
the
budget
bills
you
guys
through
the
budget
bills,
will
actually
Define
the
subsidies.
But
the
statute
says
that
the
intent
of
the
general
assembly
is
to
provide
subsidies
for
fiscal,
23
and
fiscal
24.
H
to
folks
who
have
at
least
60
percent
of
their
employees
are
actually
participating
with
kers.
These
are
subsidies
to
help
pay
for
kers
and
80
for
fiscal
years,
25
and
Beyond.
The
bottom
half
of
this
page
is
the
agencies
that
have
taxing
or
fee
Authority.
The
intent
was
to
give
them
a
certain
percentage
of
what
was
paid
as
a
subsidy
in
fiscal
22
on
going
forward,
so
in
fiscal
23
it
would
have
been
90
and
24
or
80
percent.
H
If
they
don't
have
taxing
Authority,
then
for
23
and
24
would
have
been
90
of
percent
of
the
fiscal
22
subsidy
House
Bill
one
set
those
subsidies
for
fiscal,
23.
H
and
24.
all
right.
So
what
do
we
do
with
these
reports?
Once
we
get
them?
The
employer
send
us
this
report,
there's
a
form,
that's
on
the
reg,
that's
associated
with
this.
It
goes
to
our
legal
team
and
they
look
at
the
contract.
They
look
at
these
employees
that
were
not
reported
as
participating
with
kers
and
determine
the
participation
status
based
on
61
510
through
61
675.
They
reported
300
and
no
3246
contractors
among
the
their
89
employees.
Of
the
102
eligible
to
report,
89
reported
to
us
for
fiscal
22..
H
H
We
compile
all
this
data
and
provide
it
to
lrc.
The
the
bottom
comment
talks
about
auditing
the
statute
also
requires
us
to
audit,
requires
the
Keras
board
to
Define
what
the
percentage
is
of
employers
in
this
list
that
we
want
to
audit
the
board,
mat,
September,
14th
and
decided.
What
they
wanted
us
to
do
is
to
start
with
a
small
agency
in
a
larger
agency
to
gauge
how
much
time
it
takes
us
to
do
these
Audits
and
then
we're
going
to
meet
back
with
them
in
February
to
determine
an
actual
percentage
on
that.
H
So
the
information
that
we
provided
to
lrc
into
office
of
state
budget
director
is
listed
here.
It
was
defined
mostly
defined
within
the
statutes,
but
we
reached
out
to
both
of
those
groups
and
said
if
this
is
what
we
provide
you
does
this
get
you
the
information
that
you
need,
the
big
ones
in
the
middle.
So
it's
obviously
something
that
identifies
the
agency
and
then
we
have
the
number
of
regular
full-time
employees.
H
So
those
are
the
ones
who
they
already
reported
to
us
on
the
monthly
report
that
didn't
come
in
on
the
form
and
it
didn't
have
to
be
reported
by
the
eight
by
April
that
was
already
reported
to
us.
So
we
have
that
number
and
then
we
counted
how
many
folks
were
reported
as
contractors
who
should
have
also
been
contributing
and
then
there's
a
number
on
the
report
of
the
contractors
that
were
contractors
and
were
not
eligible
to
report.
H
Then
there's
a
total
for
those
and
missing
from
this
list
is
the
percentage
so
to
get
to
the
60
or
the
80
percent
that
you
guys
wanted.
There's
a
percentage
listed.
We're
also
required
to
let
lrc
and
osbd
know
if
the
agency
was
compliant
or
not
for
us,
that's
a
did.
They
fill
out
the
form
appropriately
or
did
they
not?
H
There
were
we'll
get
to
that
information,
but
there
are
a
few
that
did
not
comply
and
then
the
summary
of
that
and
did
anybody
falsify
information,
we're
required
to
do
that?
We
did
not
find
anybody
who
falsified
any
information.
H
H
I
told
you
already
that
89
of
the
102
reported
13
did
not
report
no
false
records
and.
H
The
goal
for
60
percent
of
their
folks,
if
you
did
it
today,
there
are
79
of
the
89
reporting
agencies,
79
of
them
hit
were
at
60
or
more
and
67
of
them
or
75
percent
were
at
80
or
more.
So,
if
you
enforce
these
immediately,
the
75
of
the
89
that
rip
line
would
would
we're
not
in
any
danger
of
not
getting
their
subsidy.
A
You
have
questions
I
think
we
do
have
some
questions:
the
Chief
Architect
of
House
Bill,
a
former
coach
Eric
dupless.
He
has
a
question.
J
No,
it's
it's
really
going
to
be
very
simple:
13
employers
did
not
submit
and
I
get
two
of
them.
There's
reasons
for
two
of
them.
F
J
That
leaves
11
employers
that
did
not
submit
I
I
have
a
problem
with
that,
and
can
you
explain
why
they
didn't
submit
into
what
what
actions
need
can
and
need
to
be
taken.
H
I
cannot
explain
to
you
why
I
mean
we
certainly
reached
out
and
reached
out.
There
were
a
lot
of
emails
throughout
the
year,
letting
them
know
that's
the
most
common
way
for
us
to
communicate
with
our
employers
is
through
email,
they're
required.
They
have
a
self-service
portal
into
ours
and
they're
required
to
keep
up
to
date,
their
Chief,
the
head
of
their
agency
and
their
reporting
official
and
those
kinds
of
things.
Emails
went
to
both
those
kinds
of
groups-
multiple
emails.
H
That's
up
to
lrc,
so
the
penalties
from
kppa,
no
we're
just
the
conduit
of
the
data
from
the
employers
to
lrc
to
the
budget
Bill
folks,
but
that
would
be
up
to
you
guys.
There
are
penalties
written
in
the
statute
for
consideration.
There
are
a
lot
of,
they
might
lose
their
subsidies.
If
they
didn't
report,
they
have
to
lose
their
subsidies
if
they
falsify
data.
J
Thank
you.
This
seems
like
to
me
it's
going
to
be
a
contact
information
issue
where
somebody
hasn't
updated,
an
email
and
that's
going
into
some
dead
email
box,
but
I'm
hoping
that's
what
it
is,
but
it
seems
like
a
phone
call
to
the
office
would
be
the
way
to
follow
up
and
not
just
do
emails.
I
know
in
my
work
line
of
work.
J
A
H
A
As
as
I'm
looking
and
I
just
want
to
make
a
statement,
krs-61.5991
does
state
that
they
may
lose
their
subsidy,
so
that
needs
to
be
stated
for
the
record
for
those
agencies
and
I
hope.
Someone
is
listening
out
there
who
can
can
communicate
to
them
the
necessity
and
the
urgency
of
the
reporting
as
I'm.
Looking
at
this
summary
in
the
percentages,
there
are.
D
A
Yeah
they
need
they
need
to
understand
the
urgency
of
this
in
the
in
the
future
financial
implications
of
this
chairman
McDaniel
has
a
question
at
this
time.
K
Thank
you,
Mr,
chairman
guys,
thank
you
for
the
update.
If
you
would
go
to
slide
six,
you
reference
applying
a
common
law
Factor
to
determine
participation,
could.
D
My
name
is
Carrie
bass,
I'm
loud
anyways
I'm,
a
Staff
attorney
supervisor,
with
the
Kentucky
public
pensions
Authority,
the
Internal
Revenue
Service
used
to
have
what
was
commonly
called
the
20-factor
test.
It
was
a
a
list
of
20
factors
that
the
IRS
would
look
at
in
order
to
determine
if
somebody
an
employee
of
an
organization
or
are
they
truly
independent,
they've
transitioned
away
from
that
about
tens
of
years
ago,
to
a
much
broader
kind
of
we
take
everything
into
analysis,
facts
and
circumstances.
D
His
situation
determine
the
amount
of
control
that
an
organization
exerts
over
an
employee
or
a
person
telling
them
where
to
go.
What
to
do
how
to
dress
when
to
be
there,
particularly
yeah
exchange
responsibility
for
not
only
you
know,
telling
the
person
where
to
go
and
where
to
be,
but
for
withholding
FICA
taxes,
state
federal
Medicare
taxes
on
behalf
of
that
individual
things
like
that,
so
we
looked
primarily
at
the
contracts
that
were
submitted
with
the
form
that
the
agency
constructed
for
this
reporting.
K
So
there's
a
and
I'm
familiar
with
the
20-point
test
from
the
IRS
from
back
in
the
day,
but
this
this
sounds
like
a
bit
of
a
subject
or
objective
analysis.
D
Is
a
faction
circumstances
looking
at
the
entire
picture,
it's
not
unlimited
risk
of
factors
that
the
agency
looked
at.
K
D
I
Again
good
afternoon,
just
giving
a
brief,
retiree
health
update
here,
just
a
little
overview
of
the
plans
that
our
retirees
participate
on
for
health
insurance
coverage,
the
non-medicare
eligible
group
of
retirees.
I
So
that's
basically
the
group
who
is
under
age
65.,
the
medic
medical
coverage
is
provided
through
the
Kentucky
employee's
health
plan
or
keep
the
cers
and
KRS
board,
select
a
contribution
plan
inside
a
monthly
contribution
rate
each
year,
but
also
there
is
a
retiree
Health
Plan
committee
that
takes
a
deep
dive
and
look
into
all
of
these
plans
and
make
some
decision
and
pass
this
over
to
recommendations
onto
their
respective
boards.
I
When
the
cers
separation
occurred,
effective,
April,
1st
2021,
the
boards
decided
that
it
would
continue
to
be
a
joint
retiree
health
health
plan,
Committee
of
both
the
cers
and
KRS
boards.
So
we,
oh
I'm,
sorry,
can
you
go
back?
Rebecca,
that's
okay
and
then
just
to
note
the
keep
living
well.
Ppo
plan
has
been
selected
as
the
contribution
plan
since
2014..
So
all
the
plans
that
are
offered
to
the
active
employees
are
the
same
plane
plans
that
are
available
to
the
retirees
in
the
non-medicare
eligible
group.
I
This
is
for
individuals
who
are
Medicare
eligible,
but
they
have
re-employed
with
a
participating
employer
and
are
eligible
for
Group
Health
Plan
coverage
with
the
employer
and
that
instance,
the
Medicare
secondary
payer
act
says
that
Medicare
must
pay
secondary
to
the
coverage.
The
insurance
coverage
kppa
prior
to
the
passage
of
housebo
297
of
last
session
did
not
have
a
plan
that
could
pay
secondary
pay
secondary
to
Medicare.
There
was
a
recent
Court
ruling
that
said
that
we
are
required
to
offer
a
plan
to
these
individuals,
so
in
House
Bill
297
last
session.
I
It
was
added
that
these
retirees
who
fall
into
this
group
can
participate
on
the
keep
plans
and
that
plan
is
effective,
October,
1st
2022.
So
in
just
a
few
days,
so
we
have
some
retirees
who
are
transitioning.
It
works
the
same
as
the
keep
plans,
but
again
the
plan
pay
pays
primary
to
Medicare
again
the
contribution
rate
is
set
by
the
boards.
It
was
also
in
the
legislation,
stated
that
this
group
of
individuals
can
be
rated
separately
by
Dei
from
the
rest
of
the
plan.
Participants.
I
The
next
plan
is
the
Medicare
eligible
plan,
so
this
is
the
plan
where
most
of
your
it's,
the
over
65
population,
who
are
eligible
for
Medicare,
and
we
recently
had
an
RFP
for
the
Medicare
Advantage
plan.
Humana
was
awarded
as
the
best
vendor
through
the
45a
process,
the
RFP
process.
They
were
also
the
vendor
who
we
had
established
prior
to
the
RFP,
the
contract
going
into
2023..
I
There
are
two
Medicare
Advantage
plans
that
are
offered
here
and
we
also
have
a
medical,
only
plan,
which
is
a
self-insurance
insured
plan
and
the
claims
and
premiums
are
paid
out
of
the
insurance
Trust
again
the
board
select
a
contribution
plan
and
set
a
monthly
contribution
rate
for
this.
The
Medicare
Advantage
Premium
plan
has
been
the
plan.
That's
been
selected
as
a
contribution
rate
since
2012.
I
Foreign
on
this
side,
we
just
have
a
five-year
period.
Looking
at
the
rates,
the
trends
for
the
rates
for
both
the
non-medicare
eligible
plans
with
the
contribution
plans
and
the
human
Humana
Medicare
Advantage
Premium
plan.
You
can
see
that
the
there
has
been
slight
increase
in
the
non-medicare
eligible
plans
and
then
the
the
monthly
contribution
has
remained
flat
actually
back
to
2017
for
the
Medicare
Advantage
plans,
and
this
is
the
single
contribution
rate
that's
established
by
the
boards
there's
also
for
hazardous
members
who
participated
prior
to
July
1st
2003.
I
So,
just
looking
at
some
of
the
cost
impacts
on
the
trust,
so
some
of
the
historical
things
that
we
wanted
to
share
in
the
contract
with
Humana
there
is
a
gain
share
agreement
and
we
received
payments
in
20
gain
share
payments
in
2017
and
2019,
and
the
amount
of
7.5
million
and
12
6
12.6
million
respectively,
so
that
amount
went
back
into
the
insurance
trust.
I
Additionally,
one
thing
I
omitted
on
here
in
2020,
we
received
a
third
gain
share
amount
and
we
received
an
additional
18.6
million
in
2020
from
our
gain
share
the
establishment
of
the
one
percent
health
insurance
contribution
and
that's
for
members
who
began
participation,
September,
1st,
2008
or
after
pay
a
one
percent
health
and
non-refundable
health
insurance
contribution.
That
goes
into
the
insurance
trust
and
that's
helped
increase
funding
levels.
I
Which
is
higher
than
the
6.3
percent
trend
for
2023.,
so
a
meaningful
gain
with
and
the
non-medicare
eligible
will
provide
an
offset
a
slight
offset
due
to
that
some
possible
future
impacts
are
the
inflation
reduction
act.
That's
recently
been
passed
and
the
the
cost
impacts
are
unknown
at
this
time.
But
there
are
some
things,
such
as
the
part:
D
rebate,
some
of
those
changes.
I
Those
are
some
of
costs
that
could
be
passed
on
to
the
plan
in
the
form
of
increased
premium,
but
still
that
those
costs
are
unknown
at
this
time.
Senate
Bill,
two
or
nine
of
the
2022
regular
session
added
an
additional
five
dollars
to
our
dollar
contribution.
Retirees
on
top
of
the
dollar
amount
that
they
would
already
receive
if
they
exceed
career
thresholds
and
the
funds
are
funded
at
least
90
percent
and
then
also
the
dollar
contribution
reimbursement
plan.
I
That's
effective,
January,
1st
2023
and
that
says
for
any
retiree
who's
eligible
for
a
dollar
contribution.
They
can
be
reimbursed
if
they're
not
take
if
they
don't
take
their
health
insurance
through
kppa
and
I'd.
Just
also
like
to
say
that
the
partnership
with
Humana
has
been
vital
in
assisting
retirees
to
achieving
and
overall
improved
well-being.
I
I
J
A
I
do
have
a
question
you
know
we're
looking
at
these
Actuarial
numbers
and
they've
actually
increased
over
the
past
few
years.
That
is
correct,
so
we're
seeing
we're
seeing
much
better
Improvement
in
that
my
question
regards
to
we're
seeing
historically
High
rates
of
inflation.
Are
we
already
seeing
the
impact
of
that
in
our
health
care
plans,
or
is
that
something
that's
possible?
We'll
see
more
impact
down
the
road.
I
A
A
more
of
a
liability
against
our
cost,
as
inflation
is
impacting
that
now
all
the
under
65
retirees
are
on
the
key.
Each
are
on
the
same
plan,
but
each
each
system
has
their
own
over
65.
retiree
plan.
Is
that
correct.
I
I
do
know
that
Connie,
as
I
mentioned
before
Connie
Pettyjohn,
does
talk
to
I
believe
it's
Jane
and
I'm.
Sorry,
if
that's
not.
I
But
I
do
know
that
they
speak.
Jane
even
gave
a
presentation
to
our
retiree
health
committee
a
few
months
ago
about
a
pilot
they
did
so.
Yes,
there
is
dialogue
between
the
two.
A
Cities
and
while
kpva
is
at
the
table,
I'll
get
back
to
representative
Plessy,
but
I
just
want
to
point
out
to
the
members.
That's
on
the
agenda.
Kppa
just
recently
released
a
a
report
on
previous
investment
activities.
A
copy
of
the
report
performed
by
calcaterra
Pollock
LLC
on
their
behalf
I,
should
have
been
emailed
to
all
pbob
members.
Whenever
you
have
time
to
read
all
2200
pages,
it's
it's
there
for
the
your
pleasure,
but
I
did
want
to
make
sure
you
noted
that
you
should
have
had
that
I
know.
A
A
J
Thank
you,
Mr
chairman
two
things.
One
of
the
most
important
thing
I
meant
to
bring
up
I
didn't
bring
up
in
a
second
I
Silverleaf
is
in
my
district,
and
you
mentioned
them
as
non-compliant
and
So.
That
obviously
irked
me
because
I
I
know
that
they
were
excited
about
House,
Bill
8,
because
it
really
really
helped
them
so
I
reached
out
to
their
director.
While
we
were
sitting
here-
and
she
said,
oh,
we
submitted
that
we've
been
waiting.
J
We've
been
waiting
for
them
to
get
back
to
us
to
say
that
what
our
percentages
were
or
something
like
that.
So
there's
I've
asked
her
to
check
how
they
sent
it,
but
I'm
just
wondering
if
there's
some
other
of
the
13
or
that
are
in
the
same
boat
as
Silver
Leaf.
That
is
waiting
to
hear
back
from
the
state.
H
Okay,
so.
J
If
you
could
check
out
somebody
check
on
it,
absolutely
and
I
will
let
you
know
what
she
says
where
I
ask
her
to
find
out
where
they
sent
that
maybe
they
sent
the
wrong
place.
Maybe
there's
a
bad
information
colonel
out
there,
someplace
I,
don't
know
okay,
secondly,
and
I
meant
to
bring
this
up
earlier.
The
whole
point
of
a
house,
but
late
was
we
were
seeing
people
shift
out
of
out
of
the
system.
J
We've
seen
people
shipped
out
of
the
system,
because
the
the
percent
of
payroll
was
just
growing
and
growing
and
growing,
and
as
more
people
got
out,
it
just
shifted
it
more
to
those
who
stayed
in,
and
so
one
of
the
most
egregious
of
those
was
North
key.
So
they
they
got.
We
we
showed
their
their
example
quite
often
just
because
it
was
the
biggest
of
all.
J
They
went
from
a
contribution,
I
believe
of
three
and
a
half
million
dollars
a
year
and
a
couple
hundred
three
hundred
employees
I
believe
it
was
and
Mr
eager.
You
could
weigh
in
if
I'm
wrong
on
these
numbers,
300
employees
to
three
employees
and
their
contribution
went
from
three
and
a
half
million
down
to
100
a
hundred
like
twenty
thousand
dollars
somewhere
in
that
ballpark.
So
we
were
trying
to
fix
that,
and
the
house
bill
did
fix
that
to
some
point,
but
Senator
McDaniels.
J
Wanted
to
put
some
teeth
into
this
to
make
sure
that
people
got
back
into
the
system,
those
that
had
been
used
basically
fired
and
then
rehired
and
were
brought
back
in
the
system.
And
so,
if
you
look
at
and
if
I'm,
assuming
that
West
Northern
Kentucky
Regional
Mental
Health
mental
retardation
board
is
North
key.
Is
that
correct.
J
So
they're
still
showing
three
employees
just
like
it
was
two
years
ago
when
this
whole
thing
started
when
House
Bill
8
was
actually
a
different
number
they're,
still
showing
three
employees
and
and
they're
listed
as
compliant
and
and
David.
J
D
Carrie
bask
again
for
the
compliant
component,
the
office
of
Legal
Services.
You
know
assisted
with
the
interpretation
of
that
statutory
language
and
for
the
first
go-around.
We
interpreted
that
as
participated
in
the
process,
essentially
about
their
form
with
the
necessary
documentation.
D
So
with
the
the
audit
plan
that
the
KRS
board,
who
voted
on
the
idea,
is
that
the
kppa
team
goes
and
audits
North
to
using
your
example,
and
if
there
are
employees
that
really
should
be
contributing
or
a
non-employed
who
haven't
been
listed
on
the
required
form,
then
the
next
report
in
that
fiscal
year
will
show
North,
Key
hypothetically
as
non-compliant,
and
we
would
provide
the
general
assembly
and
the
state
budget
director's
office
with
a
summary
of
why
we
found
they
were
not
compliant.
J
A
follow-up
Mr
chairman,
please
that's
a
good
explanation
and
my
concern
is
does
again
picking
on
North
Key.
Does
the
agency
understand
that
this
one
was
pretty
LAX
but
the
next
one's
going
to
be
more
stringent?
If
you
will
do
they
understand
that
that's
coming
and
that
they
need
to
be
making
adjustments
to
their
employee
base,
because
if
I'm
North
Keys
director
I'm
thinking
I'm
good
I'm
good
I
got
my
compliant
I'm
through
I
got
my
three
employees
and
I'm
compliant.
A
B
I
A
A
Form?
Okay,
thank
you
all
for
your
update
on
that
I.
Don't
see
any
other
questions
at
this
time,
so
last
Beau
Barnes
with
TRS
to
come
up
and
give
us
some
great
information
about
the
ters
Health
Plan.
A
C
There
you
go
sorry
yeah,
it
looked
like
it
was
on,
but
it's
got
Greener
after
I
pressed
the
button
so
anyway,
bo
Barnes,
Deputy,
executive
secretary
and
general
counsel
for
the
teachers,
retirement
system
or
TRS
and
I've
been
asked
to
give
a
brief
overview
about
the
TRS
health
insurance
benefit
and
with
that
I'll
start,
and
we
also
at
TRS.
We
have
two
plans
essentially
for
retired
teachers.
C
The
first
is
the
Kentucky
employees,
health
plan
or
kehp,
which
of
course,
that
is
the
state
plan
that
is
administered
by
the
state,
Personnel
cabinet
department
of
employee
Insurance.
It
covers
not
just
retired
teachers,
but
it
covers
active
State
teachers
and
active
state
employees,
and
it's
for
our
under
65
or
not
Medicare
eligible
population,
okay
and
once
they
turn
65
and
they
become
Medicare
eligible.
C
As
a
reminder,
health,
insurance
for
our
retired
teachers
and
that
statutory
and
viable
contract,
the
only
thing
that
is
guaranteed
is
access
to
group
coverage,
but
the
level
of
that
coverage
or
the
cost
to
the
retired
teacher
are
subject
to
change.
C
Now,
I'm
going
to
talk
about
premiums
every
typically,
every
September
board,
meeting
of
the
tr's
Board
of
Trustees
staff,
present
to
the
TRS
board,
health
insurance,
maximum
health
insurance
reimbursement
rates
for
our
retired
teachers,
who
are
under
65
in
the
kehp
and
for
our
retired
teachers
65
and
over
in
the
mehp
and
first,
and
we
did
that
as
we
typically
do.
We
did
that
this
last
September
board
meeting
we
just
had
so.
C
First,
the
staff
recommended
the
maximum
premium
that
we
would
pay
that
would
be
paid
and
the
Kentucky
employees
health
plan,
the
kehp
and
I
say
maximum,
because
the
employee,
the
retired
teacher,
is
going
to
have
to
pay
part
of
the
cost
of
this
Health
Care
coverage
they've
got
to
pay
whatever
the
cost
of
the
plan
is
what
50
60
a
month
plus
they
have
to
pay
and
we'll
talk
about
this
later.
They're
gonna
have
to
pay
them
out
equal
to
the
65
and
over
Federal
Medicare
Part
B
premium
out.
C
So
our
retirees
are
paying
action
a
little
over
two
hundred
dollars
of
of
this
monthly
premium,
plus
they
have
to
have
certain
years
of
to
be
eligible
for
even
the
maximum
amount
that
we
will
pay,
which
would
be
less
than
this.
So
this
is
a
maximum
amount.
C
It's
up
to
so
for
our
retired
teachers
who
became
members
before
July
1st
2002,
they
get
the
full
maximum
payment
that
we
will
pay
or
that
will
be
paid
on
their
behalf
if
they
have
20
years
of
service,
20
or
more
years
of
service,
but
for
individual
become
members
on
or
after
July
1st
2002.
They
have
to
have
at
least
27
years
of
service
to
get
the
maximum
amount
that
will
be
paid
for
Health
Care
coverage,
both
on
the
kehp
and
the
mehp.
C
So
again,
at
the
September
board
meeting
the
board
approved
staff
recommendation
of
up
to
767.56
per
month.
I
will
note
that
our
actuaries
had
anticipated
that
we
do
an
increase
in
the
kehp
premium,
but
they
had
a
projected
754
dollars
per
member
per
month
for
the
kehp
for
the
coming
year.
So
that
is
a
slight
Actuarial
loss,
because
it's
going
to
be
more
expensive
than
projected
on
this
one
item.
There
are
a
lot
of
items
that
go
into
determining
the
Actuarial
funded
status
of
the
TRS
health
insurance
trust.
C
This
is
just
one
of
them,
but
on
this
one
point
there
would
have
been
a
slight
Actuarial
loss
moving
to
next
to
the
TRS
mehp,
the
Medicare
eligible
plan,
the
staff
presented
to
the
board
and
the
board
approved
a
maximum
amount
of
up
to
270
dollars
per
member
per
month
for
Medicare
eligible
health
plan.
Our
actuaries
had
projected
that
this
would
be
222
dollars
per
member
per
month.
So
here
we
had
a
slight
Actuarial
gain
on
just
this
one
item.
C
And
this
slide
shows
premium's
historical
slide
of
premiums
for
the
Medicare
eligible
Health
Plan.
The
far
left
you'll
see
we
start
2002
in
the
far
right.
The
current
year,
2023
our
upcoming
year
2023,
and
you
can
see
the
premiums
have
been
held
constant
for
about
20
years
now,
in
fact,
they're
slightly
less
in
the
last
several
years
than
they
were
back
in
2002,
and
there
are
a
number
of
reasons
for
this.
One
is
a
medical.
Inflation
has
been
less
than
a
lot
of
people
thought
it
would
be
say
in
2010.
C
That's
an
important
Year
I'll
talk
about
in
a
minute
before
2010.
There
are
many
years
where
you
saw
double
digit
medical
inflation
and
then
after
2010
you're,
seeing
you
know
many
of
your
single
digits,
so
inflation
trended
downward
instead
of
continuing
at
its
its
same
high
rate
prior
to
2010.
But
that's
not
the
only
reason
that
these
premium
costs
have
held
constant
over
these
years.
C
The
other
reason
is
it's
shown
in
part
on
this
slide
and
some
following
slides
as
well,
but
this
shows
something
that's
very
important
about
the
funding
for
the
medical
eligible
Health
Plan,
the
mehp
Medicare
eligible
Health
Plan,
and
this
shows
the
true
cost
of
that
benefit
and
how
it's
being
paid.
So
this
is
for
2021
2021
rates.
I,
don't
have
2022,
so
the
numbers
would
change
somewhat,
but
you
would
see
the
same
kind
of
proportionate
funding
for
the
mehp,
the
Medicare
eligible
Health
Plan.
C
C
For
example,
the
retiree
pays
Medicare
Part
B
premium
out,
that
is
for
doctors,
visits
and
outpatient
care
and
they
pay
that
to
Federal
Medicare,
but
that
is
part
of
the
cost
of
this
benefit
and
there's
all
these
the
things
that
we
that
help
pay
the
cost,
including
very
importantly,
four
lines
down
payment
to
United
Healthcare
by
Medicare.
Okay,
what
that
means
is
TRS
is
a
full
replacement.
C
Medicare
Advantage
plan
federal
government
will
play
pay
private,
a
Medicare
Advantage
carriers
like
ours,
United
Healthcare,
to
go
out
and
enroll
eligible
participants
in
Medicare
and
to
administer
the
program
to
pay
the
benefits
you
know
to
manage
the
whole
thing.
The
federal
government
is
paying
these
private
carriers
to
do
that,
and
we
see
that
brings
in
918.36
of
the
2046-24
the
total
cost
of
this
plan.
So
that's
very
important.
C
Almost
half
the
funding
for
this
comes
from
the
federal
that
Federal
payment
and
I
can
tell
you
in
2010,
we
weren't
sure
that
was
going
to
stay.
There
were
a
lot
of
folks
in
Washington
saying
this
is
going
away
and
we
were
worried
about
it
going
away.
This
is
an
important
funding
source
for
this
Health
Care
component.
But
you
see
all
these
other
things
in
here.
Know:
drug
discounts,
formula,
rebates,
subsidy,
Federal
subsidies;
they
all
help
pay
the
cost.
C
So
the
remaining
amount
2021
that
was
being
paid
from
that
TRS
health
insurance
for
us
was
178
dollars.
So
it
just
kind
of
puts
in
perspective
how
much
we
depend
on
all
these
other
variables
and
funding
sources
to
keep
costs
down,
and
here's
just
a
slide
showing
Medicare
Part
B
history.
This
impacts,
not
just
our
retiree
65
over
in
the
Medicare
eligible
health
plan.
It
also
I'm
going
to
talk
about
this
in
a
second.
It
affects
our
retiree
65
and
under
and
the
Kentucky
employees
health
plan.
C
I'll
explain
why
in
just
a
upcoming
slide,
but
you
can
see
it's
sort
of
turned
it
upward
a
little
bit
over
the
years
and
we
had
one
of
the
largest
increases
for
the
current
plan
year.
2022,
you
see
it
jumped
14.5
percent
in
one
year
from
149
dollars
per
month
for
our
retirees
to
170
dollars
a
month.
C
Let's
see
and
I'll
tell
you
part
of
the
reason
for
this
increase
is
the
Advent
of
some
special,
some
very,
very
expensive,
specialty
drugs
that
are
out
there
and
medicare's
concern
about
the
cost
of
some
of
these
specialty
drugs
out
there.
So
this
just
to
recap
briefly
about
funding
for
retired
teachers,
health
insurance,
I.
Think
most
of
this
body
is
aware
of
shared
responsibility,
but
there
may
be
some
individuals
who
are
not
or
who
are
attending
you
or
not,
but
this
is
briefly
before
2010.
C
2010
legislation
share
responsibility,
so
we'll
see
the
Commonwealth
voluntarily
paying
for
nearly
all
the
cost.
Retired
teachers
began
phasing
into
amount
paying
an
amount
towards
our
health
care
equal
to
that
Medicare
Part
B
premium
amount
that
just
jumped
170
a
month
and
that's
what
they're
paying
now
as
part
plus
whatever
the
cost
of
the
health
care
option.
They
pick
they
pay
that
too
so
they're
paying
a
typical
plan
a
little
over
700
a
month
that
are
paying
a
little
over
200
a
month.
The
state
is
paying
over
500
a
month.
C
Active
teachers
phase
end
up
paying
additional
three
percent
out
of
their
paycheck
towards
the
health
insurance
trust
to
help
pre-fund
this
benefit
and
school
districts
began
phasing
in
they
did
phase
into
an
additional
three
percent
of
payroll
to
help
fund.
This
trust,
so
that
has
worked
very
very
well,
and
this
next
slide
shows
that
how
you
can
far
left
on
this
slide
2008.
C
This
was
a
pay,
as
you
go
plan
dollars
in
dollars
out,
and
here
we
see
2010,
share
responsibility,
enacted
and
look
at
the
growth
in
this
health
insurance
trust
with
all
that
additional
dollars
coming
in
from
these
new
sources,
we
saw
strong
growth
in
the
funded
status
of
this
health
insurance
trust
in
2020
at
61.7
percent
in
2021,
60
percent.
The
reason
it
dropped
that
year
is
because
we
had
the
five-year
experience
study
that
the
actuaries
conduct
to
compare
projections
with
actual
experience.
C
As
a
result
of
that
five-year
experience
study
the
actuary
lowered
some
assumptions,
for
example,
assumed
rate
of
return
for
health
insurance
dropped
from
eight
percent
to
7.1
percent,
so
the
investment
rate
of
return.
So
when
you
drop
the
investment
rate
of
return,
that's
a
funding
source
that
has
been
diminished.
You
know
actuarially
also
for
once
in
just
a
one-time.
Only
they
changed
the
mortality
table
from
a
general
population
to
a
teacher-specific
table.
Teachers
live
longer
than
the
general
population.
C
C
I
can
tell
you,
there's
still
good
news
here
again:
I
knock
on
wood,
all
the
time.
I
hope
that
those
Federal
programs
and
subsidies
stay
in
place.
I,
hope
medical
inflation
remains
reasonable.
If
those
things
hold,
then
we'll
continue
to
see
strong
growth
we
should,
after
this
year
and
over
the
next
few
years,
and
we
are
on
track
to
get
this
very
important
benefit.
Retired
teachers
100
funded
much
sooner
rather
than
later.
C
This
just
shows
the
funding
how
the
funding
changed
the
gray
line
at
the
top
shows
the
Commonwealth
was
paying.
You
know
again
voluntarily,
almost
the
entire
cost
of
retired
teachers,
health
insurance-
that
was
unsustainable,
everybody
knew
it
2010
kicks
in
and
we
can
still,
we
start
getting
contributions
from
greater
contributions
from
teachers
from
active
teachers
and
would
get
contributions
from
retirees
under
age
65.
and
then
for
the
first
time
we
had
school
districts
and
universities
start
contributing
to
the
TRS
health
insurance
trust.
C
So
the
blue
and
green
lines
in
the
green
line
didn't
exist
before
2010
because
it
was
Zero
there.
They
start
growing
and
we
see
they
are
now
a
major
funding
source
and
that's
how
we
are
pre-funding.
C
This
health
benefit
and
I
should
have
pointed
out
that
Commonwealth
voluntarily
paying
for
almost
all
the
costs
before
2000
and
what
they're
paying
for
now
is
the
cost
of
the
kehp
premium
for
our
under
65
population,
less
what
they
pay.
Okay,
that
was
their
share
of
share
responsibility,
but
very
great
success
story.
C
One
more
thing
that
I
might
leave
on
and
I
really
want
to
point
out.
We
have
an
insurance
team
headed
by
our
director
of
retiree
health
insurance,
Jane
Gilbert,
and
she
has
fantastic
staff.
They
are
constantly
looking
for
ways
that
we
can
control
costs
and
there
have
been
changes
constantly
over
the
years,
just
going
to
point
out
one
here,
one
Innovative
approach-
and
this
was
TRS
University
of
Kentucky
and
the
University
of
Louisville
partnered
several
years
ago.
To
start
this
know
your
Rx
Coalition.
C
It
had
two-fold
purpose:
one
we
wanted
to
combine
all
these
groups
and
have
increased
members
for
better
buying
power
for
negotiate
better
medical
drug
prices.
That
was
one
thing
to
to
do
that
and
then
secondarily
also
the
know,
your
ex
Coalition,
we
hire
pharmacists
to
provide
prescription
drug
management
for
our
retired
teachers
significantly
to
help
them
understand
what
their
drugs
are,
but
also
in
many
many
cases
our
teachers
were
taking
a
brand
name
very
expensive
brand
name
drug
when
there
was
a
much
cheaper
and
equally
effective
generic
drug
out
there.
C
So
through
their
efforts,
these
pharmacies
working
with
our
members
and
their
doctors,
we've
really
increased
our
generic
fill
rate
and
that's
just
one
of
the
ways
that
we've
helped.
You
know
control
cost
over
the
years
and
then
one
more
thing
I
want
to
leave
on
just
very
quickly
and
again
I'm
very
appreciative
of
our
Board
of
Trustees.
C
Most
of
you
are
probably
aware
of
this
program,
but-
and
this
is
the
program
that
we
met
with
kppa
on
recently,
when
you
ask
about
do
we
talk
and
share
information,
we
do,
and
so
TRS
was
a
leader
in
not
using
new
technology.
It
was
old
technology,
it's
genetic
testing,
DNA
testing,
but
we
were
leading
in
new
and
applying
it
to
actually
help
our
retirees.
So
we
were
taking
technology
that
existed
and
we
began
as
a
voluntary
program.
C
Targets
didn't
have
to
do
it,
but
we
offered
them
the
ability
to
have
a
DNA
test
if
they
wanted
to
it's.
Just
a
swab
in
the
mouth,
dropping
a
test
tube,
send
it
to
the
lab
and
the
lab
can
look
at
those
DNA
results
and
they
know
a
certainty
which
drugs
work
and
which
drugs
don't
work
for
individuals,
because
some
drugs
are
never
going
to
work
from
individuals.
It's
cause
hergetic
makeup
and
some
will.
They
also,
very
importantly,
know
what
dosage
is
appropriate
because
everybody
metabolizes
drugs
differently.
Some
are
fast
metabolizers.
C
So
if
you
give
them
a
low
dosage,
it's
just
going
to
go
right
through
their
body
and
God
doesn't
help.
Some
are
slow
metabolizers.
You
can
give
them
that
same
low
dosage
and
it's
going
to
build
up
in
their
body
become
toxic
and
you
may
have
a
hospital
visit
and
you
may
have
death.
It's
a
leading
cause
of
death
in
the
United
States
is
when
people
are
taking
the
wrong
medication,
the
wrong
dosages
and
becomes
toxic
for
them,
but
with
DNA
you
know
we
can
know
exactly
which
drugs
work,
don't
which
ones
do
and
don't.
C
We
know
the
right
dosage.
Our
members
who
are
in
this
program
now
it's
more
than
a
pilot
program,
has
been
gone
ongoing
for
several
years
now
we
have
thousands
of
members
who
have
done
this.
They
can
reach
out
to
our
Pharmacists
and
our
farmers
can
reach
out
to
their
doctor
and
we
can
get
them
in
the
right
medications
and
we've
had
many
many
of
our
retirees
who
were
on
the
wrong
medications
on
the
wrong
dosages
and
just
real
quick
snapshot.
Here.
We
don't
not
only
have
better
health
outcomes
for
our
members.
C
We
have
fewer
inpatient
visits,
we
have
a
reduction
emergency
room
visits
as
a
result
of
the
wrong
medication
or
wrong
dosages.
They
have
the
the
the
Peace
of
Mind,
knowing
they're,
getting
the
right
drug
and
the
right
dosage
and
they're
not
having
to
go
through
this
titration
process.
Where
they're
trying
different
dosages
low
doses
try
that
for
months
it
doesn't
work.
Well,
let's
increase
it.
Doesn't
work
increase
even
more.
It
doesn't
work.
Okay,
it's
the
wrong
medication.
Let's
try
something
else.
They
can
go
to
the
doctor.
C
Write
drug
write
dosage,
so
it's
a
great
health
outcome
for
them,
most
importantly,
but
it
also
helps
us
achieve
savings.
You
can
see
37
million
dollars
in
direct
medical
savings
in
over
the
32
months.
So
this
is
just
we
we're
not
sitting
on
our
hands
at
TRS.
Our
board's,
been
very
supportive
of
our
insurance
department,
has
been
very
Innovative
and
hard
of
working
and
trying
to
to
find
ways
to
to
keep
cost
in
life,
because
we,
we
will
see
some
medical
inflation
in
particular
prescription
drugs.
C
C
K
You
Mr,
chairman
and
I
will
be
brief,
is
a
statement,
and
some
of
the
members
of
this
committee
heard
this
statement
today
already.
But
this
goes
to
you
and
also
the
KRS
folks.
The
best
pill
that
we
can
give
someone
is
the
one
they
never
have
to
take
and
to
that
end,
anything
we
can
do
I
mean
societally.
We
would
be
well
served
and
the
data
Bears
out
that
people
who
are
engaged
in
prevention,
the
earlier
in
life
they
begin
doing
those
things
they
begin
adopting
healthier
habits
through
exercise
through
diet.
K
I.
Don't
think
that
those
things
can
be
robust
enough
to
encourage
those
lifestyle
choices,
and
hopefully
you
know
we
have
to
spend
Less
on
health
and
more
on
the
pension
benefit
side,
as
our
mortality
tables
will
bear
out
as
we
advance
and
I
just
I
wanted
to
make
that
plug
to
you
today.
Thank
you,
Beau.
Thank
you.
Mr
chairman.
A
C
We
we
do,
you
know
our
actuaries
watch,
medical
inflation.
That's
part,
you
know
they
do
an
an
annual
evaluation
or
annual
evaluation
each
year,
and
you
know
they
compare
what
they
expected
and
what
happened.
You
know
on
a
number
of
items,
including
the
number
of
claims
filed,
for
example,
some
years
you
have
a
higher
claim
volume
than
others,
number
of
retirees
actually
on
the
health
insurance
that
varies
from
year
and
all
those
things
affect
the
cost.
But
yes,
we
do
look
at
that
every
year,
okay,.
A
B
Okay,
I
just
decided
I
was
just
talking
to
my
colleague
next
to
me,
but
what
percentage
of
the
teachers
are
not
taking
on
the
health
care
because
they
have
a
spouse
or
or
whatever,
how?
What's
the
percentage
of
teachers
not
being
in
the
system.
C
I
think
they're,
so
we've
got
let's
see
about
46,
000
members
and
spouses
on
the
kehp
and
the
mehp
of
that
number
about
sixty
seven
hundred
seven
thousand
are
spouses,
so
you
gotta
have
41
000
teachers,
retired
teachers
on
the
kehp
and
the
mehp
out
of
you
know
close
to
60
000..
So
you
have
a
large
number
that
are
taking
Insurance.
You
know
most
do
take
insurance
through
TRS,
it's
a
good
plan,
but
you
have
some
retirees
who
are
getting
coverage
for
their
spouse.
They
like
the
coverage
they
get
for
their
spouse.
C
You
have
retirees
who've
gone
back
to
work
either
in
you
know
a
TRS
cover.
You
know:
School
District
full-time,
then
they're
required
to
get
their
health
insurance
with
their
active
employer
or
they
go
to
work
for
a
private
employer
where
they
can
get
insurance
for
their
private
employer.
Then
they
are
required
to
get
insurance
that
are
active
employment
with
a
private
employer.
So
that's
some
a
couple
of
reasons
why
they're
not
with
the
TRS
insurance
or
they
under
arrest,
surprise.
Well.
A
Saying
no
more
questions
both.
Thank
you
for
your
presentation
and
with
that
the
meeting
is
adjourned.