KENTUCKY STATE UNIVERSITY SCHEDULE OF THE UNIVERSITY'S (KSU) PROPORTIONATE SHARE OF THE NET PENSION LIABILITY KENTUCKY EMPLOYEES' RETIREMENT SYSTEM June 30, 2021 (Amounts in thousands)

• The assumed rate of inflation was reduced from 3.25% to 2.30%.
• Payroll growth assumption was reduced from 4.00% to 3.05%.

Changes in Benefit Terms: Senate Bill 169 passed during the 2021 legislative session and increased the liability benefits for certain qualifying members who become “totally and permanently disabled” in the line of duty or as a result of a duty-related disability. The total pension liability as of June 30, 2021, is determined using these updated benefits provisions. During the 2018 legislative session, House Bill 185 was enacted, which updated the benefit provisions for active members who die in the line of duty. Benefits paid to the spouses of deceased members have been increased from 25% of the member's final rate of pay to 75% of the member's average pay. If the member does not have a surviving spouse, benefits paid to surviving dependent children have been increased from 10% of the member's final pay rate to 50% of average pay for one child, 65% of average pay for two children, or 75% of average pay for three children. The Total Pension Liability (TPL) as of June 30, 2018 is determined using these updated benefit provisions.

See report of independent auditors.

70.