What is Shared Responsibility?

HB540-framShared Responsibility refers to the 2010 state law where Kentucky’s teachers and the rest of the education community agreed to changes that assured the long-term funding of retiree health care for teachers and eliminated a $5 billion liability facing taxpayers.

The legislation, which was in House Bill 540, helps ensure health care benefits for not only Kentucky’s current retired teachers, but also active teachers when they retire.

Shared Responsibility set retiree health care on the path to being prefunded by requiring everyone involved (active teachers, retired teachers, school districts and the state) to share in a piece of the solution. 

To pay for these benefits, active non-university members contribute 3.75% of their salary and university members contribute 2.775%. This is in addition to contributions by employers, while retired teachers pay the equivalent of the Medicare Part B premium either to TRS or Medicare. 

For more information, see the newsletter articles from:

April 2010
May 2012

Shared Responsibility Results through 2015