2013 Kentucky Revised Statutes CHAPTER 161 - SCHOOL EMPLOYEES -- TEACHERS' RETIREMENT AND TENURE 161.250 Board of trustees to control retirement -- Membership -- Appeals -- Trustee education program -- Public disclosure of best practices model -- Administrative regulations for authorized benefit improvements.
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161.250 Board of trustees to control retirement -- Membership -- Appeals -Trustee education program -- Public disclosure of best practices model -Administrative regulations for authorized benefit improvements.
(1)
(2)
(a)
The general administration and management of the retirement system,
and the responsibility for its proper operation and for making effective
provisions of KRS 161.155 and 161.220 to 161.714 are vested in a board
of trustees to be known as the "Board of Trustees of the Teachers'
Retirement System of the State of Kentucky."
(b) The board of trustees shall consist of the chief state school officer, the
State Treasurer, and seven (7) other trustees elected as provided in KRS
161.260. Four (4) of the elective trustees shall be members of the
retirement system, to be known as teacher trustees, two (2) shall be
persons who are not members of the teaching profession, to be known as
the lay trustees, and one (1) shall be an annuitant of the retirement
system to be known as the retired teacher trustee. One (1) teacher
trustee shall be elected annually for a four-year term. The retired teacher
trustee shall be elected every four (4) years. The chief state school officer
and the State Treasurer are considered ex officio members of the board
of trustees and may designate in writing a person to represent them at
board meetings.
(c) 1.
Elective trustees shall not serve more than three (3) consecutive
four (4) year terms. An elective trustee who has served three (3)
consecutive terms may be elected again after an absence of four (4)
years from the board of trustees.
2.
The term limits established by subparagraph 1. of this paragraph
shall apply to elective trustees serving on or after July 1, 2012, and
all terms of office served prior to July 1, 2012, shall be used to
determine if the elective trustee has exceeded the term limits
provided by subparagraph 1. of this paragraph.
A member, retired member, or designated beneficiary may appeal the
retirement system's decisions that materially affect the amount of service
retirement allowance, amount of service credit, eligibility for service retirement,
or eligibility for survivorship benefits to which that member, retired member, or
designated beneficiary claims to be entitled. All appeals must be in writing and
filed with the retirement system within thirty (30) days of the claimant's first
notice of the retirement system's decision. For purposes of this section, notice
shall be complete and effective upon the date of mailing of the retirement
system's decision to the claimant at the claimant's last known address. Failure
by the claimant to file a written appeal with the retirement system within the
thirty (30) day period shall result in the decision of the retirement system
becoming permanent with the effect of a final and unappealable order. Appeals
may include a request for an administrative hearing which shall be conducted
in accordance with the provisions of KRS Chapter 13B. The board of trustees
may establish an appeals committee whose members shall be appointed by
the chairperson and who shall have the authority to act upon the report and
recommendation of the hearing officer by issuing a final order on behalf of the
full board of trustees. A member, retired member, or designated beneficiary
(3)
(4)
who has filed a timely, written appeal of a decision of the retirement system
may, following the administrative hearing and issuance of the final order by the
board of trustees, appeal the final order of the board of trustees to the Franklin
Circuit Court in accordance with the provisions of KRS Chapter 13B.
The board of trustees shall establish a formal trustee education program for all
trustees of the board. The program shall include but not be limited to the
following:
(a) A required orientation program for all new trustees to the board. The
orientation program shall include training on:
1.
Benefits and benefits administration;
2.
Investment concepts, policies, and current composition and
administration of retirement system investments;
3.
Laws, bylaws, and administrative regulations pertaining to the
retirement system and to fiduciaries; and
4.
Actuarial and financial concepts pertaining to the retirement system.
If a trustee fails to complete the orientation program within one (1) year
from the beginning of his or her first term on the board, the retirement
system shall withhold payment of the per diem and travel expenses due
to the board member under KRS 161.290 until the trustee has completed
the orientation program;
(b) Annual required training for trustees on the administration, benefits,
financing, and investing of the retirement system. If a trustee fails to
complete the annual required training during the calendar or fiscal year,
the retirement system shall withhold payment of the per diem and travel
expenses due to the board member under KRS 161.290 until the board
member has met the annual training requirements; and
(c) The retirement system shall incorporate by reference in an administrative
regulation, pursuant to KRS 13A.2251, the trustee education program.
In order to improve public transparency regarding the administration of the
system, the board of trustees shall adopt a best practices model by posting the
following information to the retirement system's Web site and shall make
available to the public:
(a) Meeting notices and agendas for all meetings of the board. Notices and
agendas shall be posted to the retirement system's Web site at least
seventy-two (72) hours in advance of the board or committee meetings,
except in the case of special or emergency meetings as provided by KRS
61.823;
(b) The Comprehensive Annual Financial Report with the information as
follows:
1.
A general overview and update on the retirement system by the
executive secretary;
2.
A listing of the board of trustees;
3.
A listing of key staff;
4.
An organizational chart;
5.
Financial information, including a statement of plan net assets, a
(5)
(6)
statement of changes in plan net assets, an actuarial value of
assets, a schedule of investments, a statement of funded status and
funding progress, and other supporting data;
6.
Investment information, including a general overview, a list of the
retirement system's professional consultants, a total return on
retirement system investments over a historical period, an
investment summary, contracted investment management
expenses, transaction commissions, and a schedule of investments;
7.
The annual actuarial valuation report on the pension benefit and the
medical insurance benefit; and
8.
A general statistical section, including information on contributions,
benefit payouts, and retirement system demographic data;
(c) All external audits;
(d) All board minutes or other materials that require adoption or ratification by
the board of trustees. The items listed in this paragraph shall be posted
within seventy-two (72) hours of adoption or ratification of the board;
(e) All bylaws, policies, or procedures adopted or ratified by the board of
trustees;
(f) The retirement system's summary plan description;
(g) The retirement system's law book;
(h) A listing of the members of the board of trustees and membership on
each committee established by the board, including any investment
committees;
(i) All investment holdings and commissions for each fund administered by
the board. The board shall update the list of holdings and commissions on
a quarterly basis for fiscal years beginning on or after July 1, 2008;
(j) An update of investment returns, asset allocations, and the performance
of the funds against benchmarks adopted by the board for each fund and
for each asset class administered by the board. The update shall be
posted on a quarterly basis for fiscal years beginning on or after July 1,
2008; and
(k) A searchable database of the system's expenditures and a listing of each
individual employed by the system along with the employee's salary or
wages. In lieu of posting the information required by this paragraph to the
system's Web site, the system may provide the information through a
Web site established by the executive branch to inform the public about
executive branch agency expenditures and public employee salaries and
wages. No provision of this paragraph shall require the system to disclose
confidential member information protected under KRS 161.585.
Notwithstanding the requirements of subsection (4) of this section, the
retirement system shall not be required to furnish information that is protected
under KRS 161.585, exempt under KRS 61.878, or that, if disclosed, would
compromise the retirement system's ability to competitively invest in real estate
or other asset classes or to competitively negotiate vendor fees.
For any benefit improvements the General Assembly has authorized the board
of trustees to establish under KRS 161.220 to 161.716 and that require formal
adoption by the board, the board shall establish the benefits by promulgation of
administrative regulations in accordance with KRS Chapter 13A.
Effective:April 11, 2012
History: Amended 2012 Ky. Acts ch. 75, sec. 10, effective April 11, 2012. -Amended 2008 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 30, effective June 27,
2008. -- Amended 2002 Ky. Acts ch. 275, sec. 4, effective July 1, 2002. -Amended 2000 Ky. Acts ch. 498, sec. 6, effective July 1, 2000. -- Amended
1990 Ky. Acts ch. 476, Pt. IV, sec. 244, effective July 13, 1990. -- Amended
1982 Ky. Acts ch. 326, sec. 3, effective July 1, 1982. -- Amended 1974 Ky. Acts
ch. 395, sec. 2, effective July 1, 1974. -- Amended 1972 Ky. Acts ch. 82, sec. 3.
-- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky.
Stat. sec. 4506b-5.
Legislative Research Commission Note (6/27/2008). 2008 (1st Extra Sess.) Ky.
Acts ch. 1, sec. 44, provides "The provisions of...subsection (1)(c) of Section 30
of this Act (this statute) that reduce the term limits of elected or appointed
members of the board of trustees of the...Kentucky Teachers' Retirement
System shall apply to terms of office beginning after July 1, 2008."
Legislative Research Commission Note (6/27/2008). The Reviser of Statutes has
altered the numbering of subsection (3)(a) of this statute from the way it
appeared in 2008 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 30, under the authority
of KRS 7.136(1)(c).
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