2015 Kentucky Revised Statutes
CHAPTER 61 - GENERAL PROVISIONS AS TO OFFICES AND OFFICERS -- SOCIAL SECURITY FOR PUBLIC EMPLOYEES -- EMPLOYEES RETIREMENT SYSTEM
61.565 Employer's contributions -- Reset of amortization period -- Payment of actuarially required contribution rate.
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<![CDATA[61.565 Employer's contributions -- Reset of amortization period -- Payment of
actuarially required contribution rate.
(1)
(2)
(3)
(a)
Each employer participating in the State Police Retirement System as
provided for in KRS 16.505 to 16.652, each employer participating in the
County Employees Retirement System as provided for in KRS 78.510 to
78.852, and each employer participating in the Kentucky Employees
Retirement System as provided for in KRS 61.510 to 61.705 shall contribute
annually to the respective retirement system an amount equal to the percent, as
computed under subsection (2) of this section, of the creditable compensation
of its employees to be known as the "normal contributions," and an additional
amount to be known as the "actuarially accrued liability contribution" which
shall be computed by amortizing the total unfunded actuarially accrued
liability over a period of thirty (30) years using the level-percentage-of-payroll
amortization method. This method shall be used beginning with the 2007
actuarial valuation. The initial thirty (30) year amortization period shall begin
with the 2007 actuarial valuation, except as provided by paragraph (b) of this
subsection.
(b) Effective with the 2013 actuarial valuation, the amortization period for the
Kentucky Employees Retirement System, the County Employees Retirement
System, and the State Police Retirement System shall be reset to a new thirty
(30) year period for purposes of calculating the actuarially accrued liability
contribution prescribed by this subsection.
(c) Any significant increase in the actuarially accrued liability due to benefit
improvements after the 2007 valuation shall be amortized using the levelpercentage-of-payroll amortization method over a separate thirty (30) year
period commencing in the year of the actuarial valuation in which the benefit
improvements are first reflected.
The normal contribution rate shall be determined by the entry age normal cost
funding method. The actuarially accrued liability shall be determined by actuarial
method consistent with the methods prescribed for determining the normal
contribution rate. Normal contributions and the actuarially accrued liability
contribution shall be determined on actuarial bases adopted by the board.
(a) Normal contribution and the actuarially accrued liability contribution rates
shall be determined by the board on the basis of the annual actuarial valuation
last preceding the July 1 of a new biennium.
(b) The board may amend contribution rates as of July 1 of the second year of a
biennium for the County Employees Retirement System, if it is determined on
the basis of a subsequent actuarial valuation that amended contribution rates
are necessary to satisfy the requirements of subsections (1) and (2) of this
section.
(c) Effective for employer contribution rates payable on or after July 1, 2014, the
board shall not have the authority to amend contribution rates as of July 1 of
the second year of the biennium for the Kentucky Employees Retirement
System and the State Police Retirement System.
(4)
(5)
(6)
The system shall advise each employer prior to the beginning of each biennium, or
prior to July 1 of the second year of a biennium for employers participating in the
County Employees Retirement System, of any change in the employer contribution
rate. Based on the employer contribution rate, each employer shall include in the
budget sufficient funds to pay the employer contributions as determined by the
board under subsections (1) to (3) of this section.
The General Assembly shall pay the full actuarially required contribution rate, as
prescribed by this section, to the Kentucky Employees Retirement System and the
State Police Retirement System in fiscal years occurring on or after July 1, 2014.
Notwithstanding any other provision of KRS Chapter 61 to the contrary, the board
shall establish employer contribution rates for the County Employees Retirement
System that will phase in to the full actuarially required contribution for the health
insurance fund over a ten (10) year period using the 2007-2008 fiscal year employer
contribution for the health insurance fund as a base employer rate and incrementally
increasing the employer rate from fiscal year 2008-2009 through fiscal year 20172018.
Effective: July 1, 2013
History: Amended 2013 Ky. Acts ch. 120, sec. 53, effective July 1, 2013. -- Amended
2009 Ky. Acts ch. 65, sec. 1, effective June 25, 2009; and ch. 77, sec. 11, effective
June 25, 2009. -- Amended 2008 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 15, effective
June 27, 2008. -- Amended 1992 Ky. Acts ch. 240, sec. 24, effective July 14, 1992. -Amended 1990 Ky. Acts ch. 489, sec. 2. effective July 13, 1990. -- Amended 1986
Ky. Acts ch. 176, sec. 4, effective July 15, 1986. -- Amended 1980 Ky. Acts ch. 186,
sec. 25, effective July 15, 1980; and ch. 246, sec. 4, effective July 15, 1980. -Amended 1976 Ky. Acts ch. 321, sec. 40. -- Amended 1974 Ky. Acts ch. 128, sec.
17. -- Amended 1972 Ky. Acts ch. 116, sec. 34. -- Amended 1962 Ky. Acts ch. 58,
sec. 7. -- Created 1956 Ky. Acts ch. 110, sec. 12.
Legislative Research Commission Note (6/25/2009). 2009 Ky. Acts ch. 65, sec. 2,
provides, "The provisions of subsection (6) of Section 1 of this Act [KRS 61.565(6)]
shall become effective for the contribution rates paid by employers participating in
the County Employees Retirement System on or after July 1, 2009."
Legislative Research Commission Note (6/27/2008). A manifest clerical or
typographical error in 2008 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 15 (this statute),
has been corrected in codification by the Reviser of Statutes under the authority of
KRS 7.136(1)(h).
Legislative Research Commission Note (6/27/2008). 2008 (1st Extra. Sess.) Ky. Acts
ch. 1, sec. 43, provides "Notwithstanding any provision of KRS 61.565 or 61.702 to
the contrary, the employer contribution rates for the County Employees Retirement
Systems (sic) from July 1, 2008, through June 30, 2009, shall be 13.5 percent,
consisting of 7.76 percent for pension and 5.74 percent for insurance, for
nonhazardous duty employees; and 29.5 percent, consisting of 15.04 percent for
pension and 14.46 percent for insurance, for hazardous duty employees."
Legislative Research Commission Note (10/19/2004). 2004 (1st Extra. Sess.) Ky. Acts
ch. 1, sec. 9, provides, "Notwithstanding KRS 61.565, the employer contribution rate
for an entity participating in the Kentucky Employees Retirement System or State
Police Retirement System shall be as follows:
(1)
From July 1, 2004, through June 30, 2005, the contribution rates shall be no
more than 5.89 percent for nonhazardous duty employees, 18.84 percent for
hazardous duty employees, and 21.58 percent for employees of the State
Police Retirement System. This provision shall be retroactive to July 1, 2004;
and
(2)
From July 1, 2005, through June 30, 2006, the employer contribution rate shall
be no more than 5.89 percent for nonhazardous duty employees, 18.84 percent
for hazardous duty employees, and 21.58 percent for employees of the State
Police Retirement System."
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