State Police Retirement System

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The State Police Retirement System was established in 1958. The first actuarial valuation of SPRS was conducted June 30, 1959. On June 30, 1960, there were 415 uniformed state troopers included in SPRS.

The cost of insurance for the retired member and eligible dependents may be partially or fully paid by KRS depending upon the member’s type and years of service, the insurance carrier selected and the level of coverage chosen.

Monthly retirement allowances are increased July 1, each year by the percentage increase in the average consumer price index for all urban consumers for the most recent calendar year not to exceed 5%. The General Assembly may reduce, suspend or eliminate the Cost of Living Adjustments (COLAs) in the future.

Membership

These numbers are as of June 2007

Active Members: 957

Inactive Members: 286

Retired Members and Beneficiaries: 1,105

Active Membership

Average Age: 37.3

Average Years of Service: 11.1

Average Annual Salary: $51,460

Retired Membership

Average Age: 60.1

Average Annual Benefit: $35,736

Number Added: 49

Number Removed: 11

Age Years of Service Allowance Reduction
55 5 None
Any 20 None
Any 15 5.5% per year for five years before age 55 or 20 years of service

Net Plan Assets

Pension Fund: $ 376,381,000

Insurance Fund: $ 132,574,000

Total: $ 508,955,000

Contributions

Employees: 8 %

Employers: Pension: 32.39 %

Insurance: 59.54 %

Rate Effective July 1, 2008

  • SPRS employer rates are subject to state budget approval.

Funding Schedule

The Plan's funding ratio is the ratio of a plan's assets to liabilities. Funding ratios of 87% are considered well funded. The average funding ratio nationally for public pension plans stands at 85%. As of June 30, 2009 SPRS pension plan was 54.8% funded. This means that for every dollar in liabilities that the plan has incurred, there are only $0.54 worth of assets to cover liabilities.

Fig. 1: SPRS Pension Funding Schedule
Fig. 2: SPRS Insurance Funds Funding Schedule

From the charts above, the SPRS pension funds were fully funded up to 2004, and since then unfunded liabilities have continued to rise significantly reaching up to 527% of payroll. Insurance funds (figure 2) funding ratios have remained significantly low over the years as unfunded liabilities as a percentage of payroll continue to rise.

Contribution Schedules

The Chart below shows contribution rates for SPRS plan contributions since 2001. This contribution rate is the ratio of the actual funds contributed to the system to the amount of the annual required contribution (ARC). Employee contribution are deducted from payroll, it is therefore logical to conclude that where contributions have not covered 100% of ARC, it is the employers who have defaulted on their contributions. Contribution rates for SPRS have continuously declined over the years shown in the chart.

Fig. 1: SPRS Contribution Rates

See Also

http://www.bipps.org/bipps-blog/http://www.facebook.com/pages/The-Bluegrass-Institute/58521621985?ref=tshttp://www.vimeo.com/freedomkyhttp://twitter.com/BIPPShttp://www.youtube.com/user/FreedomKentuckyIcons.png