The Fixed Allocation Non-Hazardous Pension Fund is a statewide pool of $69,691,600 in each fiscal year from the General Fund for quasi-governmental entities to continue the baseline subsidy for employer contributions and provide the additional funds necessary to finance the increased costs attributable to the shift to a fixed allocation for the unfunded liability of the nonhazardous retirement plan's employer contributions. The fixed allocation subsidy for Public Health Departments is 50 percent of the fiscal year 2022 subsidy in fiscal years 2027 and 2028. The fixed allocation subsidy for Community Mental Health Centers and Non-P1 Agencies is 75 percent of the fiscal year 2022 subsidy in fiscal years 2027 and 2028. This 2021 legislation made a significant change in the method of funding the unfunded actuarially accrued liability by assigning a fixed dollar allocation to each participating entity instead of by a contribution rate against actual payroll amounts. This reform addresses the longstanding trend of quasi-governmental entities purposefully reducing the participation of their workers in the nonhazardous retirement system and avoiding those costs.

The funds are allocated as follows:

General Fund amounts to cover additional costs were directly appropriated to comprehensive universities and the Kentucky Community Technical College System, and the County Attorney offices.

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