2018 Kentucky Revised Statutes CHAPTER 16 - STATE POLICE .583 Hybrid cash balance plan for members of State Police Retirement System, and for certain members of Kentucky Employees Retirement System and County Employees Retirement System in hazardous duty positions, whose participation begins on or after January 1, 2014 -- Member contributions and employer pay credits -- Interest credits -- Termination of employment -- Options upon retirement.
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16.583 Hybrid cash balance plan for members of State Police Retirement System,
and for certain members of Kentucky Employees Retirement System and
County Employees Retirement System in hazardous duty positions, whose
participation begins on or after January 1, 2014 -- Member contributions and
employer pay credits -- Interest credits -- Termination of employment -Options upon retirement.
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(4)
A member of the State Police Retirement System, a member of the Kentucky
Employees Retirement System in a hazardous duty position covered by this section,
or a member of the County Employees Retirement System in a hazardous duty
position covered by this section, whose participation begins on or after January 1,
2014, shall receive the retirement benefits provided by this section in lieu of the
retirement benefits provided under KRS 16.576 and 16.577. The retirement benefit
provided by this section shall be known as the hybrid cash balance plan and shall
operate as another benefit tier within the State Police Retirement System, the
Kentucky Employees Retirement System, and the County Employees Retirement
System.
The hybrid cash balance plan shall provide a retirement benefit based upon the
member's accumulated account balance, which shall include:
(a) Contributions made by the member as provided by KRS 16.505 to 16.652,
61.510 to 61.705, and 78.510 to 78.852, except for employee contributions
prescribed by KRS 61.702(2)(b);
(b) An employer pay credit of seven and one-half percent (7.5%) of the creditable
compensation earned by the employee for each month the employee is
contributing to the hybrid cash balance plan provided by this section; and
(c) Interest credits added annually to the member's accumulated account balance
as provided by this section.
(a) Member contributions and employer pay credits as provided by subsection
(2)(a) and (b) of this section shall be credited to the member's account
monthly as contributions are reported and posted to the system in accordance
with KRS 61.675 and 78.625.
(b) Interest credits, as provided by subsection (2)(c) of this section, shall be
credited to the member's account annually on June 30 of each fiscal year, as
determined by subsection (4) of this section.
(a) On June 30 of each fiscal year, the system shall determine if the member
contributed to the hybrid cash balance plan during the fiscal year.
(b) If the member contributed to the hybrid cash balance plan during the fiscal
year, the interest credit added to the member's account for that fiscal year shall
be determined by multiplying the member's accumulated account balance on
June 30 of the preceding fiscal year by a percentage increase equal to:
1.
Four percent (4%); plus
2.
Seventy-five percent (75%) of the system's geometric average net
investment return in excess of a four percent (4%) rate of return.
(c) If the member did not contribute to the hybrid cash balance plan during the
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fiscal year, the interest credit added to the member's account for that fiscal
year shall be determined by multiplying the member's accumulated account
balance on June 30 of the preceding fiscal year by four percent (4%).
(d) For purposes of this subsection, "system's geometric average net investment
return":
1.
Means the annual average geometric investment return, net of
administrative and investment fees and expenses, over the last five (5)
fiscal years as of the date the interest is credited to the member's
account; and
2.
Shall be expressed as a percentage and based upon the system in which
the member has an account.
(e) No employer pay credits or interest credits shall be provided to a member who
has taken a refund of contributions as provided by KRS 61.625 or who has
retired and annuitized his or her accumulated account balance as prescribed by
this section.
(a) Upon termination of employment, a member who has less than five (5) years
of service credited under KRS 16.543(1), 61.543(1), and 78.615(1), who
elects to take a refund of his or her accumulated account balance as provided
by KRS 61.625, shall forfeit the accumulated employer credit, and shall only
receive a refund of his or her accumulated contributions.
(b) Upon termination of employment, a member who has five (5) or more years of
service credited under KRS 16.543(1), 61.543(1), and 78.615(1), who elects to
take a refund of his or her accumulated account balance as provided by KRS
61.625, shall receive a full refund of his or her accumulated account balance.
A member participating in the hybrid cash balance plan provided by this section
may retire:
(a) At his or her normal retirement date, provided he or she has earned five (5) or
more years of service credited under KRS 16.543(1), 61.543(1), or 78.615(1),
or another state-administered retirement system; or
(b) At any age, provided he or she has earned twenty-five (25) or more years of
service credited under KRS 16.543(1), 61.543(1), or 78.615(1) or another
state-administered retirement system.
A member eligible to retire under subsection (6) of this section may elect to:
(a) Receive a monthly retirement allowance payable for life by having his or her
accumulated account balance annuitized by the retirement systems in
accordance with the actuarial assumptions and actuarial methods adopted by
the board and in effect on the member's retirement date;
(b) Receive the actuarial equivalent of his or her retirement allowance calculated
under paragraph (a) of this subsection payable under one (1) of the options set
forth in KRS 61.635, except for the option provided by KRS 61.635(11); or
(c) Take a refund of his or her account balance as provided by KRS 61.625.
The provisions of this section shall not apply to members who began participating
in the Kentucky Employees Retirement System, the County Employees Retirement
System, or the State Police Retirement System prior to January 1, 2014.
Effective: July 14, 2018
History: Amended 2018 Ky. Acts ch. 107, sec. 40, effective July 14, 2018. -- Amended
2017 Ky. Acts ch. 125, sec. 8, effective March 27, 2017. -- Created 2013 Ky. Acts
ch. 120, sec. 8, effective July 1, 2013.
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