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161.677 Kentucky Teachers' Retirement System insurance trust fund.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(a)
The Kentucky Teachers' Retirement System insurance trust fund is
hereby created. All assets received in the trust fund shall be deemed trust
funds to be held and applied solely as provided in this section. Assets of
the trust fund shall not be used for any other purpose and shall not be
used to pay the claims of creditors or any individual, person, or employer
participating in the Kentucky Teachers' Retirement System.
(b) The trust fund is intended to be established as a trust exempt from
taxation under 26 U.S.C. sec. 115.
The trust fund is created for the purpose of providing a trust separate from the
funds under KRS 161.420. Trust fund assets are dedicated for use for health
benefits as provided in KRS 161.675, and as permitted under 26 U.S.C. secs.
105 and 106, for present and future eligible recipients of a retirement allowance
from the Kentucky Teachers' Retirement System.
The trust fund shall be administered by the board of trustees established by
KRS 161.250, and the board shall serve as trustees of the fund. The board
shall manage the assets of the fund in the same general manner in which it
administers the retirement funds, except that the asset allocation may differ
and separate accounting and financial reporting shall be maintained for the
trust fund.
In addition to the requirements of subsection (2) of this section, the employers
participating in the trust fund are limited to the Commonwealth, political
subdivisions of the Commonwealth, and entities whose income is exempt from
taxation under 26 U.S.C. sec. 115. No other entity may participate in the trust
fund.
If the trust fund is terminated, the assets in the trust fund may revert, after the
payment of all liabilities, to the participating employers as determined by the
board of trustees.
The board of trustees may promulgate administrative regulations and adopt
procedures and a trust document to implement this section and take all action
necessary and appropriate to provide that the income of the trust fund shall not
diminish or expand the rights of any recipients, employees, or dependents to
health benefits.
The establishment of the Kentucky Teachers' Retirement System insurance
trust fund shall not diminish or expand the rights of any recipients, employees,
or dependents to health benefits.
The trust fund established under this section, at the direction of the board of
trustees, shall consist of amounts, excluding those amounts that have been
deposited to an account established pursuant to 26 U.S.C. sec. 401(h), that
have been accumulated for the purpose of providing benefits as provided in
KRS 161.675, including:
(a) Contributions required under KRS 161.550;
(b) Contributions required under KRS 161.675(4)(b); and
(c) Interest income from the investments of the fund from contributions
received by the fund and from income earned on those investments.
Effective:July 1, 2010
History: Created 2010 Ky. Acts ch. 159, sec. 1, effective July 1, 2010; and ch. 164,
sec. 1, effective July 1, 2010.
Legislative Research Commission Note (7/1/2010). This section was created by
2010 Ky. Acts chs. 159 and 164, which do not appear to be in conflict and have
been codified together.
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