2014 Kentucky Revised Statutes CHAPTER 61 - GENERAL PROVISIONS AS TO OFFICES AND OFFICERS -- SOCIAL SECURITY FOR PUBLIC EMPLOYEES -- EMPLOYEES RETIREMENT SYSTEM 61.650 Board trustee of funds -- Investment committee -- Registration of securities -- Duties owed retirement system -- Application of open records law -- Cap on amount of assets managed by any one investment manager.
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61.650 Board trustee of funds -- Investment committee -- Registration of
securities -- Duties owed retirement system -- Application of open
records law -- Cap on amount of assets managed by any one investment
manager.
(1)
(2)
(3)
(4)
(a)
The board shall be the trustee of the several funds created by KRS
16.510, 61.515, 61.701, and 78.520, notwithstanding the provisions of
any other statute to the contrary, and shall have exclusive power to invest
and reinvest such funds in accordance with federal law.
(b) 1.
The board shall establish an investment committee whose
membership shall be composed of the following:
a.
The two (2) trustees appointed by the Governor pursuant to
KRS 61.645(1)(e)5.; and
b.
Three (3) trustees appointed by the board chair.
2.
The investment committee shall have authority to implement the
investment policies adopted by the board and act on behalf of the
board on all investment-related matters and to acquire, sell,
safeguard, monitor, and manage the assets and securities of the
several funds.
(c) A trustee, officer, employee, or other fiduciary shall discharge duties with
respect to the retirement system:
1.
Solely in the interest of the members and beneficiaries;
2.
For the exclusive purpose of providing benefits to members and
beneficiaries and paying reasonable expenses of administering the
system;
3.
With the care, skill, and caution under the circumstances then
prevailing that a prudent person acting in a like capacity and familiar
with those matters would use in the conduct of an activity of like
character and purpose;
4.
Impartially, taking into account any differing interests of members
and beneficiaries;
5.
Incurring any costs that are appropriate and reasonable; and
6.
In accordance with a good-faith interpretation of the law governing
the retirement system.
All securities acquired under authority of KRS 61.510 to 61.705 shall be
registered in the name "Kentucky Retirement Systems" or nominee name as
provided by KRS 286.3-225 and every change in registration, by reason of sale
or assignment of such securities, shall be accomplished pursuant to written
policies adopted by the board.
The board, in keeping with its responsibility as trustee and wherever consistent
with its fiduciary responsibilities, shall give priority to the investment of funds in
obligation calculated to improve the industrial development and enhance the
economic welfare of the Commonwealth.
The contents of real estate appraisals, engineering or feasibility estimates, and
evaluations made by or for the system relative to the acquisition or disposition
of property, until such time as all of the property has been acquired or sold,
(5)
shall be excluded from the application of KRS 61.870 to 61.884 and shall be
subject to inspection only upon order of a court of competent jurisdiction.
Based upon market value at the time of purchase, the board shall limit the
amount of assets managed by any one (1) active or passive investment
manager to fifteen percent (15%) of the assets in the pension and insurance
funds.
Effective:July 1, 2013
History: Amended 2013 Ky. Acts ch. 120, sec. 66, effective July 1, 2013. -Amended 2010 Ky. Acts ch. 127, sec. 2, effective July 15, 2010; and ch. 173,
sec. 7, effective July 15, 2010. -- Amended 2004 Ky. Acts ch. 36, sec. 24,
effective July 13, 2004. -- Amended 2003 Ky. Acts ch. 169, sec. 11, effective
March 31, 2003. -- Amended 2002 Ky. Acts ch. 52, sec. 12, effective July 15,
2002. -- Amended 1998 Ky. Acts ch. 105, sec. 16, effective July 15, 1998. -Amended 1988 Ky. Acts ch. 349, sec. 25, effective July 15, 1988. -- Amended
1984 Ky. Acts ch. 232, sec. 3, effective July 13, 1984. -- Amended 1980 Ky.
Acts ch. 246, sec. 11, effective July 15, 1980. -- Amended 1976 Ky. Acts
ch. 321, sec. 40. -- Amended 1974 Ky. Acts ch. 128, sec. 27, effective March
26, 1974. -- Amended 1972 Ky. Acts ch. 116, sec. 49. -- Amended 1966 Ky.
Acts ch. 35, sec. 13. -- Amended 1964 Ky. Acts ch. 86, sec. 9. -- Amended 1962
Ky. Acts ch. 58, sec. 20. -- Amended 1960 Ky. Acts ch. 165, Part II, sec. 15. -Created 1956 Ky. Acts ch. 110, sec. 29.
Legislative Research Commission Note (7/12/2006). 2006 Ky. Acts ch. 247
instructs the Reviser of Statutes to adjust KRS references throughout the
statutes to conform with the 2006 renumbering of the Financial Services Code,
KRS Chapter 286. Such an adjustment has been made in this statute.
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