Download as PDF
78.640 Members' account -- Interest.
(1)
(2)
(3)
(4)
The members' account shall be the account to which:
(a) All members' contributions, or contributions picked up by the employer
after August 1, 1982, and interest allowances as provided in KRS 78.510
to 78.852 shall be credited, except as provided by KRS 61.702(2)(b); and
(b) For members who begin participating in the system on or after January 1,
2014, the employer pay credit and interest credited on such amounts as
provided by KRS 16.583 and 61.597 shall be credited.
Only funds from this account shall be used to return the accumulated
contributions or accumulated account balances of a member when required to
be returned to him by reason of any provision of KRS 78.510 to 78.852. Prior to
the member's retirement, death, or refund in accordance with KRS 61.625, no
funds shall be made available from the member account.
Each member's contribution or contribution picked up by the employer shall be
credited to the individual account of the contributing member, except as
provided by KRS 61.702(2)(b).
(a) Each member shall have his individual account credited with interest on
June 30 of each year.
(b) For a member who begins participating before September 1, 2008,
interest shall be credited to his individual account at a rate determined by
the board but not less than two percent (2%) per annum on the
accumulated account balance of the member on June 30 of the preceding
fiscal year.
(c) For a member who begins participating on or after September 1, 2008,
but prior to January 1, 2014, interest shall be credited to his or her
individual account at a rate of two and one-half percent (2.5%) per annum
on the accumulated contributions of the member on June 30 of the
preceding fiscal year.
(d) For a member who begins participating on or after January 1, 2014, in the
hybrid cash balance plan, interest shall be credited in accordance with
KRS 16.583 and 61.597.
(e) The amounts of interest credited to a member's account under this
subsection shall be transferred from the retirement allowance account.
(a) Upon the retirement of a member who began participating in the system
prior to January 1, 2014, his accumulated account balance shall be
transferred from the members' account to the retirement allowance
account.
(b) Upon the retirement of a member who began participating in the system
on or after January 1, 2014, who elects to annuitize his or her
accumulated account balance as prescribed by KRS 16.583(7)(a) or (b)
or 61.597(7)(a) or (b), the member's accumulated account balance shall
be transferred to the retirement allowance account.
Effective:July 1, 2013
History: Amended 2013 Ky. Acts ch. 120, sec. 78, effective July 1, 2013. -Amended 2009 Ky. Acts ch. 77, sec. 27, effective June 25, 2009. -- Amended
2008 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 27, effective June 27, 2008. --
Amended 2000 Ky. Acts ch. 385, sec. 37, effective July 14, 2000. -- Amended
1982 Ky. Acts ch. 166, sec. 30, effective July 15, 1982. -- Amended 1978 Ky.
Acts ch. 311, sec. 25, effective June 17, 1978. -- Amended 1976 Ky. Acts
ch. 321, sec. 40. -- Amended 1966 Ky. Acts ch. 34, sec. 6. -- Amended 1964 Ky.
Acts ch. 49, sec. 8. -- Amended 1962 Ky. Acts ch. 31, sec. 10. -- Created 1958
Ky. Acts ch. 167, sec. 14.
Legislative Research Commission Note (6/27/2008). The Reviser of Statutes has
altered the numbering of subsection (3) of this statute from the way it appears in
2008 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 27, under the authority of KRS
7.136(1)(c).
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
