2016 Kentucky Revised Statutes CHAPTER 6 - THE GENERAL ASSEMBLY .350 Actuarial analysis required for bill before General Assembly to increase benefits or participation in state-administered retirement system.
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6.350
(1)
(2)
(3)
(4)
Actuarial analysis required for bill before General Assembly to increase
benefits or participation in state-administered retirement system.
A bill which would increase or decrease the benefits or increase or decrease
participation in the benefits or change the actuarial accrued liability of any stateadministered retirement system shall not be reported from a legislative committee of
either house of the General Assembly for consideration by the full membership of
that house unless the bill is accompanied by an actuarial analysis.
(a) An actuarial analysis required by this section must show the economic effect
of the bill on the state-administered retirement system over a twenty (20) year
period, including:
1.
An estimate of the effect on the unfunded actuarial accrued liabilities
and funding levels of the affected systems; and
2.
A projection of the annual employer costs to the systems of
implementing the legislation over the twenty (20) year period. The
annual employer cost projection shall include the effect on the
contributions of participating employers as a percentage of total payroll
and in total dollars of contributions.
(b) If a bill affects more than one (1) state-administered retirement system, the
actuarial analysis shall project costs for each affected state-administered
retirement system.
(c) An actuarial analysis shall state the actuarial assumptions and methods of
computation used in the analysis and shall state whether or not the bill or
resolution, if enacted, would, in the opinion of the actuary, make the affected
state-administered retirement system actuarially unsound or, in the case of a
system already actuarially unsound, more unsound. Actuarial cost methods
and assumptions that meet actuarial standards of practice established by the
Actuarial Standards Board shall be used in all cost projections.
(d) An actuarial analysis required by this section shall be prepared by an actuary
who is a fellow of the Conference of Consulting Actuaries or a member of the
American Academy of Actuaries.
(a) An actuary commissioned to make an actuarial analysis that is required by this
section, or for the purpose of seeking appropriations for a state-administered
retirement system, shall include in the analysis a complete definition of each
actuarial term used in the analysis and, either in the analysis or in a separate
actuarial valuation report made available as a public record, an enumeration
and explanation of each actuarial assumption used to complete the actuarial
analysis.
(b) If the actuary commissioned to complete the actuarial analysis is relying upon
assumptions that have not been previously established by the actuary in an
actuarial valuation of the affected state-administered retirement system, the
actuary shall clearly note and describe the new assumption and the basis for
selecting the assumption.
The actuarial analysis required by this section shall be completed by the actuary
(5)
retained by the affected state-administered retirement system. The stateadministered retirement systems shall provide the analysis without cost to the
General Assembly.
For purposes of this section, the terms:
(a) "State-administered retirement system" shall include:
1.
The Kentucky Employees Retirement System, the County Employees
Retirement System, and the State Police Retirement System
administered by the Kentucky Retirement Systems and established under
the provisions of KRS 16.505 to 16.652, 61.510 to 61.705, and 78.510
to 78.852;
2.
The Kentucky Teachers' Retirement System established under KRS
161.220 to 161.716;
3.
The Judicial Retirement Plan established under KRS 21.345 to 21.580;
and
4.
The Legislators' Retirement Plan established under KRS 6.500 to 6.577;
and
(b) "Funding level" means the actuarial value of assets divided by the actuarially
accrued liability expressed as a percentage.
Effective: July 15, 2016
History: Amended 2016 Ky. Acts ch. 133, sec. 1, effective July 15, 2016. -- Amended
2008 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 1, effective June 27, 2008. -- Created
1980 Ky. Acts ch. 246, sec. 1, effective July 15, 1980.
Legislative Research Commission Note (10/19/2004). 2004 (1st Extra. Sess.) Ky. Acts
ch. 1, sec. 19, provides, "The provisions of this Act shall be effective, KRS 6.350 to
the contrary notwithstanding."
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