Panel reviews proposal to let probationary hires buy service credit for line‑of‑duty coverage

Representative Chris Lewis presented House Bill 516 as a narrow fix to allow certain employees who serve in probationary positions to purchase service credit for that probationary period and to ensure line‑of‑duty death and disability coverage would apply to that time. He said the measure is optional and intended as a recruitment tool: an employer may elect to pay for the service credit on behalf of a recruit, or the employee could purchase it within six months after probation ends.

"Currently, no employee or employer contributions are paid during the probationary period, so the employee is not provided retirement service or coverage during that employment period," Lewis told the board. The bill would let eligible employees either have the employer pay or periodically finance the employee's purchase of service credit so that time counts toward service and, in appropriate cases, line‑of‑duty benefits.

KPPA staff explained to the board that because the bill requires payment of both the employee and employer contributions for purchased probationary service (albeit after service is completed), that timing difference tends to make the fiscal effect nonmaterial in an actuarial reading: the contributions are paid later rather than never paid. Board members raised concerns about retroactivity and administrative burden if buybacks were allowed long after the probationary period; KPPA and sponsors said the current draft limits buybacks to within six months of probation to avoid those complications.

Supporters including Jeff Taylor of the Kentucky Professional Firefighters said stakeholders worked with sponsors and local governments on drafting. The committee did not act on House Bill 516; KPPA indicated it will continue to support the committee with further actuarial detail and administrative estimates.