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67A.580 Accounts and records -- Reserve accounts.
(1)
(2)
An adequate system of accounts and records shall be established and
maintained for the fund that will reflect fully the requirements of the provisions
of KRS 67A.360 to 67A.690. This system shall be integrated, to the extent
possible with the accounts, records, and procedures of the government to the
end that the same shall operate most effectively and at minimum expense, and
that duplication of records and accounts may be avoided.
All assets of the fund shall be credited according to the purposes for which
they are held in the following designated reserve accounts:
(a) Members' Contribution Reserve. The amounts contributed by the
members, including those picked up pursuant to KRS 67A.510(2), shall
be credited to this reserve, together with regular interest thereon as
herein provided. An individual account shall be maintained for each
member, to which shall be credited the amounts of his contributions or
amounts picked up by the urban-county government. Upon the granting of
a service retirement annuity, disability annuity, or survivor's annuity or
benefit, the accumulated contributions to the credit of the member
concerned shall be transferred from this reserve to the retirement reserve.
Refunds and death payments representing member's contributions shall
be charged to this reserve.
(b) Employer's Contribution Reserve. The amounts contributed by the
government under the provisions hereof, for service retirement annuity,
disability retirement annuity, and benefits to survivors covering
membership service and prior service, shall be credited to this reserve.
Upon the granting of a service retirement annuity, disability retirement
annuity, or survivor's benefit, an amount representing the excess of the
actuarial value of the annuity, or benefit over the accumulated
contributions of the member, shall be transferred from this reserve to the
retirement reserve.
(c) Retirement Reserve. Upon the granting of a service retirement annuity,
disability retirement annuity, or survivor's benefit, the accumulated
contributions of the member, including those picked up pursuant to KRS
67A.510(2), and an amount representing the excess of the actuarial value
of the annuity or benefit over such accumulated contributions, shall be
transferred to this reserve from the member's contribution reserve and
employer's contribution reserve, respectively. All income from
investments, including gains on investment transactions, shall be credited
to this reserve. All losses on investments shall be charged to this reserve.
All payments on account of any annuity made by the fund shall be
charged to this reserve. Any deficiency in this reserve shall be removed
by an increase in the amount of government's contributions for future
membership service.
Effective:March 14, 2013
History: Amended 2013 Ky. Acts ch. 7, sec. 16, effective March 14, 2013. -Amended 2002 Ky. Acts ch. 274, sec. 6, effective July 15, 2002. -- Amended
1982 Ky. Acts ch. 166, sec. 42, effective July 15, 1982. -- Created 1974 Ky. Acts
ch. 106, sec. 23, effective July 1, 1974.
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