2021 Kentucky Revised Statutes Chapter 18A - State personnel 18A.250 Deferred compensation system -- Automatic enrollment of employees hired after July 1, 2019 -- Automatic enrollment of justices, judges, and members of the General Assembly elected or appointed after July 1, 2021.
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18A.250 Deferred compensation system -- Automatic enrollment of employees
hired after July 1, 2019 -- Automatic enrollment of justices, judges, and
members of the General Assembly elected or appointed after July 1, 2021.
(1)
(2)
(3)
(4)
The authority shall establish and maintain a deferred compensation plan for the
employees of the State of Kentucky. Participation in such plan shall be by
agreement between such employees and the authority and shall provide for the
deferral of such amount of compensation as requested by the employee.
Participating employees must authorize that such deductions be made from their
wages for the purpose of participation in such program.
The board is directed to develop and obtain, for the benefit of employees, a
qualified employee plan that includes a qualified cash or deferred arrangement as
described in Section 401(k) of the Internal Revenue Code. The board is directed to
develop a program for participants to borrow from their account or accounts in the
plan. The plan shall be in addition to other plans offered by the board, and shall be
offered to employees upon receipt of appropriate approval of the Internal Revenue
Service or on January 1, 1985, whichever occurs later.
Notwithstanding the provisions of KRS 337.060, agreements to participate and plan
elections made by employees pursuant to subsections (1) and (2) of this section may
be made in writing or by electronic record, signature, or contract as determined by
the authority and in accordance with the provisions of KRS 369.101 to 369.120.
Agreements and elections, including but not limited to hardship withdrawal
applications, loan applications, beneficiary designations, and withdrawal requests
made by participating employees under the plan, shall not be denied legal effect or
enforceability if made electronically to the extent permitted by the authority.
Notwithstanding KRS 337.060 and subsections (1) to (3) of this section:
(a) Each full-time employee of the executive, judicial, and legislative branches of
Kentucky state government hired on or after July 1, 2019, shall be
automatically enrolled in the 401(k) plan established pursuant to this section,
and the employee's compensation shall be reduced by thirty dollars ($30) per
month and contributed as a pre-tax deferral to the 401(k) plan unless and until
the employee makes a deferral election under the terms of the 401(k) plan.
Full-time status shall be determined by an employee's employer. The authority
shall not be responsible or liable for any cost or liabilities resulting from such
eligibility determinations made by an employer;
(b) Each new member of the General Assembly elected or appointed on or after
July 1, 2021, upon taking office, shall be automatically enrolled in the 401(k)
plan established pursuant to this section, and the member's compensation shall
be reduced by thirty dollars ($30) per month and contributed as a pre-tax
deferral to the 401(k) plan unless and until the member makes a deferral
election under the terms of the 401(k) plan;
(c) Each new justice of the Supreme Court and each new regular judge of the
Court of Appeals, Circuit Court, District Court, and Family Court elected or
appointed on or after July 1, 2021, upon taking office, shall be automatically
enrolled in the 401(k) plan, and the justice's or judge's compensation, as
(d)
applicable, shall be reduced by thirty dollars ($30) per month and contributed
as a pre-tax deferral to the 401(k) plan unless and until the justice or judge, as
applicable, makes a deferral election under the terms of the 401(k) plan. This
section shall not apply to special judges appointed under KRS 26A.020; and
The automatic enrollment shall begin as of the employee's first paycheck or as
soon as administratively feasible thereafter. The board shall select a default
investment fund or funds, pursuant to applicable federal law, for investment of
an employee's deferrals into the employee's account until the employee makes
an investment election. The board shall amend the 401(k) plan for the
implementation and administration of employee automatic enrollment, and the
board shall have authority to implement automatic enrollment consistent with
applicable requirements of the Internal Revenue Code of 1986, as amended.
The board may promulgate administrative regulations for implementation of
automatic enrollment.
Effective: June 29, 2021
History: Amended 2021 Ky. Acts ch. 111, sec. 3, effective June 29, 2021. -- Amended
2019 Ky. Acts ch. 48, sec. 1, effective June 27, 2019; and ch. 153, sec. 3, effective
June 27, 2019. -- Amended 2010 Ky. Acts ch. 122, sec. 2, effective July 15, 2010. -Amended 1998 Ky. Acts ch. 154, sec. 51, effective July 15, 1998. -- Amended 1990
Ky. Acts ch. 483, sec. 6, effective July 13, 1990. -- Amended 1988 Ky. Acts ch. 154,
sec. 2, effective July 15, 1988. -- Amended 1984 Ky. Acts ch. 234, sec. 1, effective
July 13, 1984. -- Repealed, reenacted, and amended as KRS 18A.250, 1982 Ky. Acts
ch. 448, sec. 50, effective July 15, 1982. -- Amended 1980 Ky. Acts ch. 352, sec. 1. - Created 1974 Ky. Acts ch. 143, sec. 6.
Formerly codified as KRS 18.550.
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