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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).
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