KENTUCKY STATE UNIVERSITY SCHEDULE OF THE UNIVERSITY'S PROPORTIONATE SHARE OF THE NET OPEB LIABILITY KENTUCKY EMPLOYEES' RETIREMENT SYSTEM JUNE 30, 2023 (AMOUNTS IN THOUSANDS) (SEE INDEPENDENT AUDITORS' REPORT)

Nonhazardous 2023 2022 2021 2020 2019 2018

Proportion of the Net OPEB Liability $ 5,847 $ 5,727 $ 8,099 $ 6,622 $ 5,389 $ 6,178

Proportionate Share of the Net OPEB Liability 0.23 % 0.25 % 0.32 % 0.30 % 0.23 % 0.24 %

Covered Payroll $ 3,225 $ 4,015 $ 4,548 $ 4,358 $ 3,583 $ 3,888

Proportionate Share of the Net OPEB Liability as a Share of Covered Payroll 181.30% 142.59 % 178.08 % 151.95 % 150.66 % 158.90 %

Plan Fiduciary Net Position as a Percentage of Total OPEB Liability 38.15 % 38.38 % 29.00 % 30.92 % 27.32 % 24.40 %

Hazardous 2023 2022 2021 2020 2019 2018

Proportion of the Net OPEB Liability (Asset) $ 9 $ (12) $ 26 $ (19) (62) 3

Proportionate Share of the Net OPEB Liability 0.08 % 0.10 % 0.06 % 0.07 % 0.19 % 0.05 %

Covered Payroll $ 205 $ 179 $ 106 $ 114 $ 309 $ 79

Proportionate Share of the Net OPEB Liability as a Share of Covered Payroll 4.39% -6.70% 24.53% (16.67)% (20.06)% 3.80 %

Plan Fiduciary Net Position as a Percentage of Total OPEB Liability 98.72 % 101.85 % 92.00 % 105.29 % 105.83 % 98.80 %

Note: This table represents data that is one year in arrears. These are 10-year schedules. However, the information in this schedule is not required to be presented retroactively. Years will be added to this schedule in future fiscal years until 10-years of information is available.

Changes in Assumptions

The discount rate used to calculate the total OPEB liability increased from 5.26% to 5.72% for the KERS nonhazardous insurance plan and from 5.01% to 5.59% for the KERS hazardous insurance plan.

Senate Bill 209 passed during the 2022 legislative session and increased the insurance dollar contribution for members hired on or after July 1, 2003, by $5 for each year of service a member attains over certain thresholds, depending on a member's retirement eligibility requirement. This increase in the insurance dollar contribution does not increase by 1.5% annually and is only payable for non-Medicare retirees. Additionally, it is only payable when the member's applicable insurance fund is at least 90% funded. The increase is first payable January 1, 2023.

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