2013 Kentucky Revised Statutes CHAPTER 16 - STATE POLICE 16.583 Hybrid cash balance plan for members of State Police Retirement System, and for members of Kentucky Employees Retirement System and County Employees Retirement System in hazardous duty positions, who began participating on or after January 1, 2014 -- Member contributions and employer pay credits -- Interest credits -- Termination of employment -- Options upon retirement.
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16.583 Hybrid cash balance plan for members of State Police Retirement
System, and for members of Kentucky Employees Retirement System
and County Employees Retirement System in hazardous duty positions,
who began participating on or after January 1, 2014 -- Member
contributions and employer pay credits -- Interest credits -- Termination
of employment -- Options upon retirement.
(1)
(2)
(3)
(4)
A member of the State Police Retirement System, a member of the Kentucky
Employees Retirement System in a hazardous duty position covered by this
section, or a member of the County Employees Retirement System in a
hazardous duty position covered by this section, whose participation begins on
or after January 1, 2014, shall receive the retirement benefits provided by this
section in lieu of the retirement benefits provided under KRS 16.576 and
16.577. The retirement benefit provided by this section shall be known as the
hybrid cash balance plan and shall operate as another benefit tier within the
State Police Retirement System, the Kentucky Employees Retirement System,
and the County Employees Retirement System.
The hybrid cash balance plan shall provide a retirement benefit based upon the
member's accumulated account balance, which shall include:
(a) Contributions made by the member as provided by KRS 16.505 to
16.652, 61.510 to 61.705, and 78.510 to 78.852, except for employee
contributions prescribed by KRS 61.702(2)(b);
(b) An employer pay credit of seven and one-half percent (7.5%) of the
creditable compensation earned by the employee for each month the
employee is contributing to the hybrid cash balance plan provided by this
section; and
(c) Interest credits added annually to the member's accumulated account
balance as provided by this section.
(a) Member contributions and employer pay credits as provided by
subsection (2)(a) and (b) of this section shall be credited to the member's
account monthly as contributions are reported and posted to the system
in accordance with KRS 61.675 and 78.625.
(b) Interest credits, as provided by subsection (2)(c) of this section, shall be
credited to the member's account annually on June 30 of each fiscal year,
as determined by subsection (4) of this section.
(a) On June 30 of each fiscal year, the system shall determine if the member
contributed to the hybrid cash balance plan during the fiscal year.
(b) If the member contributed to the hybrid cash balance plan during the
fiscal year, the interest credit added to the member's account for that
fiscal year shall be determined by multiplying the member's accumulated
account balance on June 30 of the preceding fiscal year by a percentage
increase equal to:
1.
Four percent (4%); plus
2.
Seventy-five percent (75%) of the system's geometric average net
investment return in excess of a four percent (4%) rate of return.
(c) If the member did not contribute to the hybrid cash balance plan during
the fiscal year, the interest credit added to the member's account for that
(5)
(6)
(7)
(8)
fiscal year shall be determined by multiplying the member's accumulated
account balance on June 30 of the preceding fiscal year by four percent
(4%).
(d) For purposes of this subsection, "system's geometric average net
investment return":
1.
Means the annual average geometric investment return, net of
administrative and investment fees and expenses, over the last five
(5) fiscal years as of the date the interest is credited to the member's
account; and
2.
Shall be expressed as a percentage and based upon the system in
which the member has an account.
(e) No employer pay credits or interest credits shall be provided to a member
who has taken a refund of contributions as provided by KRS 61.625 or
who has retired and annuitized his or her accumulated account balance
as prescribed by this section.
(a) Upon termination of employment, a member who has less than five (5)
years of service credited under KRS 16.543(1), 61.543(1), and 78.615(1),
who elects to take a refund of his or her accumulated account balance as
provided by KRS 61.625, shall forfeit the accumulated employer credit,
and shall only receive a refund of his or her accumulated contributions.
(b) Upon termination of employment, a member who has five (5) or more
years of service credited under KRS 16.543(1), 61.543(1), and 78.615(1),
who elects to take a refund of his or her accumulated account balance as
provided by KRS 61.625, shall receive a full refund of his or her
accumulated account balance.
A member participating in the hybrid cash balance plan provided by this
section may retire:
(a) At his or her normal retirement date, provided he or she has earned five
(5) or more years of service credited under KRS 16.543(1), 61.543(1), or
78.615(1), or another state-administered retirement system; or
(b) At any age, provided he or she has earned twenty-five (25) or more years
of service credited under KRS 16.543(1), 61.543(1), or 78.615(1) or
another state-administered retirement system.
A member eligible to retire under subsection (6) of this section may elect to:
(a) Receive a monthly retirement allowance payable for life by having his or
her accumulated account balance annuitized by the retirement systems in
accordance with the actuarial assumptions and actuarial methods
adopted by the board and in effect on the member's retirement date;
(b) Receive the actuarial equivalent of his or her retirement allowance
calculated under paragraph (a) of this subsection payable under one (1)
of the options set forth in KRS 61.635, except for the option provided by
KRS 61.635(11); or
(c) Take a refund of his or her account balance as provided by KRS 61.625.
The provisions of this section shall not apply to members who began
participating in the Kentucky Employees Retirement System, the County
Employees Retirement System, or the State Police Retirement System prior to
January 1, 2014.
Effective:July 1, 2013
History: Created 2013 Ky. Acts ch. 120, sec. 8, effective July 1, 2013.
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