2014 Kentucky Revised Statutes CHAPTER 78 - COUNTY EMPLOYEES' CIVIL SERVICE AND RETIREMENT 78.530 Participation by political subdivisions -- Payment -- Closing of participation in local government systems -- Hazardous duty coverage option.
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78.530 Participation by political subdivisions -- Payment -- Closing of
participation in local government systems -- Hazardous duty coverage
option.
(1)
(2)
(3)
(a)
Each county and school board, as defined in KRS 78.510, will participate
in the system by appropriate order authorizing such participation which
has been entered and duly recorded in the records of the governing body
of the county or school board. In cases where general purpose county
government does not participate, but the sheriff and his employees or the
county clerk and his employees do, the sheriff or the clerk shall retain the
order in his office. The authority to issue and properly record such order
of participation being hereby granted, permits such county to participate in
the system. The effective date of such participation shall be fixed in the
order.
(b) Notwithstanding any statute to the contrary, after April 9, 2002, the
systems shall deny the request for participation of any agency which does
not have an irrevocable contract with the state Personnel Cabinet for
health insurance coverage under KRS 18A.225 to 18A.229 for its active
employees, except that:
1.
County governments entering the system between April 9, 2002,
and July 1, 2003, under this section shall be excluded from this
requirement; and
2.
Agencies entering the system on or after April 9, 2002, which were
established by a merger or an interlocal agreement to provide public
services shall be excluded from this requirement if all agencies
entering into the merger or interlocal agreement had an initial
participation date with the system prior to April 9, 2002.
Once a county or school board participates, it shall thereafter continue to
participate, except as provided in KRS 78.535.
(a) Concurrent with the adoption of the appropriate resolution to participate in
the system, a county may elect the alternate participation plan which will
require the county to purchase on behalf of each employee electing
coverage, at the time the county elected to participate in the system as
provided under KRS 78.540(2), current service credit for employment in
regular full-time positions between July 1, 1958, and the participation date
of the county. Cities which participate in the system pursuant to
subsection (7) of this section, KRS 79.080, 90.400, 90.410, 95.520,
95.621, 95.761, 95.768, 95.852, or 96.180 shall be required to purchase
on behalf of each employee electing coverage only as much service credit
as the employee has accumulated in the city-administered plan, up to the
participation date of the city. Accumulated service shall include service for
which an employee received a refund pursuant to KRS 95.620 or 95.866,
if such refund has been repaid. If the employee has not yet repaid the
refund, he may make payment to the system by any method acceptable
to the system, and the requirement of five (5) years of continuous
reemployment prior to repayment of refunds shall not apply. Upon the
employee's repayment, the city shall purchase the associated service
credit for the employee. Cost of such service credit over and above that
(b)
(c)
(d)
which would be funded within the existing employer contribution rate shall
be determined by the board's consulting actuary. The expense of such
actuarial service shall be paid by the county;
The county shall establish a payment schedule subject to approval by the
board for payment of the cost of such service over and above that which
would be funded within the existing employer contribution rate. The
maximum period allowed in a payment schedule shall be thirty (30) years,
with interest at the rate actuarially assumed by the board. A shorter period
is desirable and the board may approve any payment schedule provided it
is not longer than a thirty (30) year period, except that cities which
participate in the system pursuant to subsection (7) of this section, KRS
79.080, 90.400, 90.410, 95.520, 95.621, 95.761, 95.768, 95.852, or
96.180 may, at their option, extend the payment schedule to a maximum
of thirty (30) years, may choose to make level payments at the interest
rate actuarially assumed by the board over the life of the payment
schedule chosen, and may retain employer contributions and the earnings
thereon attributable to employees electing coverage;
A city entering the system under the alternate participation plan, may, by
ordinance, levy a special property tax to pay for current service credit
purchased for the period between July 1, 1958, and the participation date
of the city. The special tax shall be to pay, within a period of no more than
fifteen (15) years, for the cost of such service credit over that which would
be funded within the existing employer contribution rate, as determined by
the board's consulting actuary. The reason for levying the special tax and
the disposition of the proceeds shall be part of the ordinance levying the
tax. The special tax shall be rescinded when the unfunded prior service
liability has been amortized, and shall not be subject to the provisions of
KRS 132.017 or 132.027. In addition, the city may maintain any tax, the
proceeds of which had been devoted to funding pension obligations under
the locally administered plan prior to participation in the system, for the
purpose of funding current service costs incurred after the date of
participation. The city may increase the tax to pay current service costs
which exceed the local pension system costs to which the tax had been
devoted, but the city shall not collect from the tax more revenues than are
necessary to pay current service costs incurred after the date of
participation. The city may continue the tax so long as it participates in the
system, and the tax shall not be subject to the provisions of KRS 132.017
or 132.027. The city shall not collect either tax authorized by this
paragraph if its participation has been terminated pursuant to KRS
78.535;
The county may at a later date purchase current service credit from July
1, 1958, to the participation date of the county by alternate participation
plan for those employees who rejected membership in the system at the
time the county first participated. In addition, the employer shall pay the
employer contributions on the creditable compensation of the employees
who later elect membership from the participation date of the county to
the date the member elects participation. The employee shall pay the
employee contributions on his creditable compensation from the
(e)
(f)
(g)
participation date of the county to the date he elects membership plus
interest at the current actuarial rate compounded annually on the
employee and employer contributions. Cost of the service credit over and
above that which would be funded within the existing employer
contribution rate shall be determined by the board's consulting actuary.
The expense of the actuarial service shall be paid by the county. The
county shall pay the cost of the service by lump sum or by adding it to the
existing payment schedule established under paragraph (b) of this
subsection;
A county which did not participate by alternate participation may, until
July 1, 1991, purchase current service credit for those employees who
rejected membership in the system at the time the county first
participated. The employer shall pay the employer contributions on the
creditable compensation of the employees who later elect membership
from the participation date of the county to the date the member elects
participation. The employee shall pay the employee contributions on his
creditable compensation from the participation date of the county to the
date he elects membership plus interest at the current actuarial rate
compounded annually on the employee and employer contributions. The
county shall pay the cost of the service credit by lump sum or by
establishing a payment schedule under paragraph (b) of this subsection;
and
A county which participated in the system but did not elect the alternate
participation plan may at a later date elect the alternate participation plan.
In this case, the county shall purchase on behalf of each employee
participating in the system current service credit for employment in regular
full-time positions between July 1, 1958, or a later date selected by the
county government, and the participation date of the county. The county
shall also purchase, for employees who decide to participate when the
county elects the alternate participation plan, current service credit for
employment in regular full-time positions between July 1, 1958, or the
later date selected by the county government, and the participation date
of the county. In addition, the county shall pay the employer contributions
on the creditable compensation of the employees who later elect
membership from the participation date of the county to the date the
member elects participation. The employee shall pay the employee
contributions on his creditable compensation from the participation date of
the county to the date he elects membership plus interest at the current
actuarial rate compounded annually on the employee and employer
contributions. Cost of the service credit over that which would be funded
within the existing employer contribution rate shall be determined by the
board's consulting actuary. The expense of the actuarial service shall be
paid by the county. The county shall pay the cost of the service by lump
sum or by a payment schedule established under paragraph (b) of this
subsection.
Notwithstanding any other provision of the Kentucky Revised Statutes to
the contrary, this subsection shall not apply to members who begin
participating in the system on or after January 1, 2014, and no county that
(4)
(5)
(6)
(7)
elects to participate in the system on or after January 1, 2014, shall be
eligible to participate under the alternate participation plan.
Every school board not participating on June 21, 1974, shall enact a resolution
of participation no later than July 1, 1976.
The order of the governing body of a county, as provided for in subsection (1)
of this section, may exclude from participation in the system hospitals and any
other semi-independent agency. Each such excluded agency shall be identified
in the order authorizing participation and such excluded agency may participate
in the system as a separate agency.
An agency whose participation in the County Employees Retirement System
has been terminated by the board of trustees in accordance with KRS 78.535
may at a later date request participation in the retirement system by the
adoption of an appropriate order as authorized by subsection (1) of this
section. The board may accept the participation of such agency provided it is
determined that such participation is in the best interest of the agency, the
employees thereof and the County Employees Retirement System.
(a) After August 1, 1988, except as permitted by KRS 65.156, no local
government retirement system shall be created pursuant to KRS 70.580
to 70.598 and any local government retirement systems created pursuant
to KRS 79.080, 90.400, 90.410, 95.768, and KRS Chapter 96 shall be
closed to new members. New employees who would have been granted
membership in such retirement systems shall instead be granted
membership in the County Employees Retirement System. Employees
who would have been granted membership in retirement systems created
pursuant to KRS 95.768, or any other policemen or firefighters who would
have been granted membership in retirement systems created pursuant
to KRS 79.080, 90.400, or 90.410, or any such policemen or firefighter
members employed on or prior to August 1, 1988, who transfer to the
County Employees Retirement System, shall be certified by their
employers as working in hazardous positions. Each city participating in
the County Employees Retirement System pursuant to this subsection
shall execute the appropriate order authorizing such participation, shall
select the alternate participation plan as described in subsection (3) of
this section, and shall pay for the actuarial services necessary to
determine the additional costs of alternate participation. Cities which
closed their local pension systems to new members and participated in
the system prior to July 15, 1988, whose employees at the time of
transition were given the option to join the system shall not be required to
offer said employees a second option to join the system.
(b) Notwithstanding any statute to the contrary, after April 9, 2002, the
systems shall deny the request for participation of any agency which does
not have an irrevocable contract with the state Personnel Cabinet for
health insurance coverage under KRS 18A.225 to 18A.229 for its active
employees, except that agencies entering the system on or after April 9,
2002, which were established by a merger or an interlocal agreement to
provide public services shall be excluded from this requirement if all
agencies entering into the merger or interlocal agreement had an initial
(8)
participation date with the system prior to April 9, 2002.
Any city which closed a police and firefighter pension plan to new members
between January 1, 1988, and July 15, 1988, and participated in the system
under the alternate participation plan shall, if its police and firefighters were not
covered by Social Security, or any city which operates a pension under KRS
90.400 or 90.410, shall be required to certify that its police and firefighters are
working in hazardous positions, and shall offer its police and firefighters in
service at the time of entry a second option to participate under hazardous duty
coverage if they were not offered hazardous duty coverage at the time of their
first option. The provisions of subsection (3)(b) of this section notwithstanding,
a city affected by this subsection may, at its option, extend its payment
schedule to the County Employees Retirement System for alternate
participation to thirty (30) years at the rate actuarially assumed by the board.
Effective:July 1, 2013
History: Amended 2013 Ky. Acts ch. 120, sec. 73, effective July 1, 2013. -Amended 2011 Ky. Acts ch. 52, sec. 5, effective June 8, 2011. -- Amended 2002
Ky. Acts ch. 270, sec. 1, effective April 9, 2002. -- Amended 1990 Ky. Acts
ch. 157, sec. 1, effective July 13, 1990; ch. 279, sec. 1, effective July 13, 1990;
and ch. 392, sec. 1, effective July 13, 1990. -- Amended 1988 Ky. Acts ch. 11,
sec. 1, effective July 15, 1988; ch. 349, sec. 32, effective July 15, 1988; Ky. Acts
ch. 364, sec. 4, effective July 15, 1988; and ch. 366, sec. 1, effective July 15,
1988. -- Amended 1986 Ky. Acts ch. 90, sec. 23, effective July 15, 1986; and
ch. 331, sec. 21, effective July 15, 1986. -- Amended 1984 Ky. Acts ch. 177,
sec. 3, effective July 13, 1984. --Amended 1978 Ky. Acts ch. 311, sec. 21,
effective June 17, 1978. -- Amended 1974 Ky. Acts ch. 87, sec. 2; and ch. 128,
sec. 33, effective March 26, 1974. -- Amended 1972 Ky. Acts ch. 116, sec. 62. -Amended 1966 Ky. Acts ch. 34, sec. 2. -- Amended 1964 Ky. Acts ch. 49,
sec. 2. -- Amended 1962 Ky. Acts ch. 31, sec. 2. -- Created 1958 Ky. Acts
ch. 167, sec. 3.
Legislative Research Commission Note (6/8/2011). 2011 Ky. Acts ch. 52, sec.
6, provided that "if an agency meets the requirements of the exception provided
in subsection (1)(b)2. of Section 5 of this Act (this statute), but was required
under KRS 78.530 prior to the effective date of this Act (June 8, 2011) to sign a
contract with the Personnel Cabinet to provide its employees with health
insurance coverage through the Public Employees Health Insurance Plan as a
condition of its participation in the County Employees Retirement System, then
the agency shall be eligible to opt out of the health insurance contract by
notifying the secretary of the Personnel Cabinet."
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