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Insurance Contribution Changes

​​​​​​​​​​Contribution Rate Increases in July 2026​

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CERS members with a participation date of July 1, 2003 and after are affected by a 2025 law change. Retirement rules may be different depending on when you became a member (your participation date) and whether your job is hazardous or nonhazardous. You can check your membership details anytime by logging in at ​ MyRetirement.ky.gov​.

Senate Bill 10 (2025 Regular Session)

A new law passed in 2025 makes two important changes for CERS members:
  1. Retiree insurance contribution increases: This is how much is paid toward your monthly insurance coverage through KPPA when you retire. 
  2. Employee insurance contribution increases: This is the amount taken out of your paycheck for insurance contributions. 

Retiree Insurance Contribution for Career Employees

Starting January 2026, non-Medicare retirees who meet career service requirements will receive a higher insurance dollar contribution. If you are planning to retire, check the eligibility criteria to see if you qualify. ​ Learn more.

​Employee Health Insurance Contribution

Your employer deducts contributions from your paycheck each month and submits them to KPPA. Effective July 1, 2026:

  • Tier 1 members with a participation date of July 1, 2003 - August 31, 2008 will begin paying a non-refundable health insurance contribution (HIC).
  • Nonhazardous members will pay a one percent (1%) non-refundable HIC. There is no change for Tier 2 and Tier 3.
  • Hazardous members will pay a two percent (2%) non-refundable HIC, which is a one percent (1%) increase for Tier 2 and Tier 3.​
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​Participation
Date
 ​Service
Type
 ​Current
HIC
 ​7/1/2026
HIC
Tier 1​​
​7/1/2003-
8/31/200​8*
​Nonhazardous
​0%
​1%
​Tier 1
​7/1/2003-
8/31/2008*
​Hazardous
​0%
​2%
​Tier 2
​9/1/2008-
12/31/2013
​Nonhazardous
​1%
​1%
(no change)
​Tier 2
​9/1/2008-
13/31/2013
​Hazardous
​1%
​2%
​Tier 3
​1/1/2014 and
after
​Nonhazardous
​1%
​1%
(no change)
​Tier 3
​1/1/2014 and
after
​Hazardous
​1%
​2%

​​

Hire Date Exemption*

This contribution increase may not apply if:
  • Your participation date is between July 1, 2003 and July 31, 2004 and
  • You were hired by any participating employer​ before July 1, 2003.

If this applies to you, you will receive more instructions on how to complete the verification process. Watch your email for updates. If KPPA does not have a valid email for you, information will be mailed to your address on file.

What to Expect

The new health insurance contribution rate will apply to payroll records reported to KPPA for wages earned July 1, 2026 and after. You will see the updated amount on your paycheck once your employer applies the new rate. 

Learn More

Watch a video​ explaining these changes:

​Learn more about the Non-Medicare Retiree Insurance Career Threshold Dollar Contribution. 

Read the 2025 Legislative Summary.

Access your account online at MyRetirement.ky.gov to:​

  • Verify your participation date
  • Upload documents
  • Maintain your contact information
*Please keep in mind that all KPPA publications may not be updated to reflect all Senate Bill 10 changes. While this work is in progress, please check this page for the latest information.​

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