2020 Kentucky Revised Statutes Chapter 61 - General provisions as to offices and officers -- social security for public employees -- employees retirement system 61.701 Kentucky Retirement Systems insurance trust fund and County Employees Retirement System insurance trust fund -- Purpose -- Administration -- Participation, regulation, and termination.
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61.701 Kentucky Retirement Systems insurance trust fund and County Employees
Retirement System insurance trust fund -- Purpose -- Administration -Participation, regulation, and termination. (Effective April 1, 2021)
(1)
(2)
(3)
(a)
There is hereby created and established a trust fund to be known as "Kentucky
Retirement Systems insurance trust fund" and a trust fund to be known as the
"County Employees Retirement System insurance trust fund."
(b) All assets received in the Kentucky Retirement Systems insurance trust fund
shall be deemed trust funds to be held and applied solely as provided in this
section. Assets of the trust fund shall not be used for any other purpose and
shall not be used to pay the claims of creditors or any individual, person, or
employer participating in the Kentucky Employees Retirement System or
State Police Retirement System.
(c) All assets received in the County Employees Retirement System insurance
trust fund shall be deemed trust funds to be held and applied solely as
provided in this section. Assets of the trust fund shall not be used for any other
purpose and shall not be used to pay the claims of creditors or any individual,
person, or employer participating in the County Employees Retirement
System.
(d) The trust fund is intended to be established as a trust exempt from taxation
under 26 U.S.C. sec. 115.
(e) Effective April 1, 2021, the assets held in the Kentucky Retirement Systems
insurance trust fund as of March 31, 2021, that were attributable to
contributions made by County Employees Retirement System members,
employers, or recipients and the resulting investment returns shall be
transferred to the County Employees Retirement System insurance trust fund.
The trust funds are created for the purpose of providing a trust separate from the
retirement funds. Trust fund assets are dedicated for use for health benefits as
provided in KRS 61.702, and as permitted under 26 U.S.C. secs. 105 and 106, to
retired recipients and employees of employers participating in the Kentucky
Employees Retirement System as it relates to the Kentucky Retirement Systems
insurance trust fund, County Employees Retirement System as it relates to the
County Employees Retirement System insurance trust fund, and State Police
Retirement System as it relates to the Kentucky Retirement Systems insurance trust
fund, and to certain of their dependents or beneficiaries, including but not limited to
qualified beneficiaries as described in 42 U.S.C. secs. 300bb-1 et seq.
The Kentucky Retirement Systems insurance trust fund shall be administered by the
board of trustees of the Kentucky Retirement Systems and the County Employees
Retirement System insurance trust fund shall be administered by the board of
trustees of the County Employees Retirement System and the respective board shall
serve as trustees of the fund. The boards shall manage the assets of the funds in the
same manner in which the respective board administers its retirement funds, except
that separate accounting and financial reporting shall be maintained for the trust
funds.
(4)
(5)
(6)
(7)
In addition to the requirements of subsection (2) of this section, the employers
participating in the trust funds are limited to the Commonwealth, political
subdivisions of the Commonwealth, and entities whose income is exempt from
taxation under 26 U.S.C. sec. 115. No other entity may participate in the trust funds.
If a trust fund is terminated, the assets in the trust fund may revert, after the
payment of all liabilities, to the participating employers as determined by the board
of trustees.
The respective board of trustees may adopt regulations and procedures and take all
action necessary and appropriate to provide that the income of the trust fund the
board administers is exempt from taxation under Title 26 of United States Code.
The establishment of the Kentucky Retirement Systems insurance trust fund or the
County Employees Retirement System insurance trust fund shall not diminish or
expand the rights of any recipients, employees, or dependents to health benefits.
Effective: April 1, 2021
History: Amended 2020 Ky. Acts ch. 79, sec. 27, effective April 1, 2021. -- Amended
2009 Ky. Acts ch. 77, sec. 21, effective June 25, 2009. -- Amended 2004 Ky. Acts
ch. 36, sec. 29, effective July 13, 2004. -- Amended 2002 Ky. Acts ch. 52, sec. 15,
effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 385, sec. 27, effective July
14, 2000. -- Amended 1998 Ky. Acts ch. 351, sec. 1, effective July 15, 1998. -Amended 1980 Ky. Acts ch. 97, sec. 3, effective July 15, 1980. -- Created 1978 Ky.
Acts ch. 311, sec. 8, effective June 17, 1978.
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