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21.440 Duties of investment committee -- Duties of board -- Actuarial valuations,
investigations, and analyses -- Audit.
(1)
(a)
(b)
(c)
(d)
The investment committee for the judicial retirement fund shall at least once
in every two (2) year period procure an actuarial valuation of the judicial
retirement fund. The valuation shall, at a minimum, include:
1.
A description of the actuarial assumptions used in the actuarial
valuation, which shall be reasonably related to the experience of the
fund and represent the actuary's best estimate of anticipated experience;
2.
A description of any funding methods utilized or required by state law in
the development of the actuarial valuation results;
3.
A description of any changes in actuarial assumptions and methods from
the previous year's actuarial valuation;
4.
The actuarially recommended contribution rate for employers for the
upcoming budget periods;
5.
A twenty (20) year projection of the funding levels, unfunded liabilities,
and actuarially recommended contribution rates for employers based
upon the actuarial assumptions, funding methods, and experience of the
system as of the valuation date; and
6.
A sensitivity analysis that evaluates the impact of changes in plan
assumptions, including but not limited to the investment return
assumption, payroll growth assumption, and medical inflation
assumptions, on employer contribution rates, funding levels, and
unfunded liabilities.
At least once in each five (5) year period, the board of trustees of the Judicial
Form Retirement System shall cause an actuarial investigation to be made of
all the relevant experience under the retirement plan relative to the actuarial
assumptions and funding methods previously adopted by the board. The
actuarial investigation shall include at a minimum a summary of the changes
in actuarial assumptions and funding methods recommended in the
investigation and the projected impact of the recommended changes on
funding levels, unfunded liabilities, and actuarially recommended contribution
rates for employers over a twenty (20) year period.
Pursuant to the investigation, the board shall from time to time revise the
actuarial tables previously adopted by the board and shall thereupon revise the
bases of the rates of contributions required under KRS 21.345 to 21.580.
For any change in actuarial assumptions, funding methods, retiree health
insurance premiums and subsidies, or any other decisions made by the board
that impact system liabilities and actuarially recommended contribution rates
for employers and that are not made in conjunction with the actuarial
investigation required by paragraph (b) of this subsection, an actuarial analysis
shall be completed showing the projected impact of the changes on funding
levels, unfunded liabilities, and actuarially recommended contribution rates
for employers over a twenty (20) year period.
(e)
(f)
(2)
(a)
(b)
A copy of the valuation, the five (5) year actuarial investigation, and any
analysis required by this subsection shall be forwarded electronically to the
Legislative Research Commission within ten (10) days of receipt by the
committee, and the Legislative Research Commission shall distribute the
information received to the committee staff and co-chairs of any committee
that has jurisdiction over the Judicial Form Retirement System. The actuarial
valuation required by paragraph (a) of this subsection shall be submitted no
later than November 15 following the close of the fiscal year.
All the investigations and valuations shall be certified to the board by an
actuary who shall be a fellow of the Conference of Consulting Actuaries or a
member of the American Academy of Actuaries.
The board of trustees of the Judicial Form Retirement System shall annually
procure an audit of the system and each of the funds therein. The audit shall
be conducted in accordance with generally accepted auditing standards.
Except as provided by paragraph (b) of this subsection, the board may select
an independent certified public accountant or the Auditor of Public Accounts
to perform the audit. If the audit is performed by an independent certified
public accountant, the Auditor of Public Accounts shall not be required to
perform an audit pursuant to KRS 43.050(2)(a), but may perform an audit at
his discretion. The board shall make copies of the audit required by this
section available for examination by any member or beneficiary in the office
of the manager of the system and in such other places as may be necessary to
make the audit available to all members and beneficiaries. A copy of the audit
shall be sent to the Legislative Research Commission within ten (10) days of
receipt by the committee.
Once every five (5) years, the Auditor of Public Accounts shall perform the
audit described by this subsection, and the system shall reimburse the Auditor
of Public Accounts for all costs of the audit. The Auditor of Public Accounts
shall determine which fiscal year during the five (5) year period the audit
prescribed by this paragraph will be completed.
Effective: July 15, 2016
History: Amended 2016 Ky. Acts ch. 133, sec. 4, effective July 15, 2016. -- Amended
2012 Ky. Acts ch. 75, sec. 4, effective April 11, 2012. -- Amended 1990 Ky. Acts ch.
489, sec. 13, effective July 13, 1990. -- Amended 1984 Ky. Acts ch. 111, sec. 27,
effective July 13, 1984. -- Amended 1980 Ky. Acts ch. 246, sec. 2, effective July 15,
1980. -- Created 1960 Ky. Acts ch. 84, Art. III, sec. 10.
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