2021 Kentucky Revised Statutes Chapter 61 - General provisions as to offices and officers -- social security for public employees -- employees retirement system 61.505 Kentucky Public Pensions Authority – Purpose -- Membership, vacancies, compensation, and meetings -- Authority granted powers and privileges of corporation -- Executive director and employees -- Expenses -- Authorization of administrative expenses -- Duties of members.
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61.505
Kentucky Public Pensions Authority
Purpose -- Membership,
vacancies, compensation, and meetings -- Authority granted powers and
privileges of corporation -- Executive director and employees -- Expenses
-- Authorization of administrative expenses -- Duties of members.
(1)
There is created an eight (8) member Kentucky Public Pensions Authority
whose purpose shall be to administer and operate:
(a) A single personnel system for the staffing needs of the Kentucky
Retirement Systems and the County Employees Retirement System;
(b) A system of accounting that is developed by the authority for the
Kentucky Retirement Systems and the County Employees Retirement
System;
(c) Day-to-day administrative needs of the Kentucky Retirement Systems
and the County Employees Retirement System, including but not limited
to:
1.
Benefit counseling and administration;
2.
Information technology and services, including a centralized Web
site for the authority, the Kentucky Retirement Systems, and the
County Employees Retirement System;
3.
Legal services;
4.
Employer reporting and compliance;
5.
Processing and distribution of benefit payments, and other financial,
investment administration, and accounting duties as directed by the
Kentucky Retirement Systems board of trustees or the County
Employees Retirement System board of trustees;
6.
All administrative actions necessary to carry out benefit functions
required by the Kentucky Retirement Systems and the County
Employment Retirement System statutes, including but not limited to
administration of reduced and unreduced retirement benefits,
disability retirement, reemployment after retirement, service
purchases, computation of sick-leave credit costs, pension spiking
determinations, and all other administrative decisions and orders;
and
7.
Completing and compiling financial data and reports;
(d) Any jointly held assets used for the administration of the Kentucky
Retirement Systems and the County Employees Retirement System,
including but not limited to real estate, office space, equipment, and
supplies;
(e) Hiring a single actuarial consulting firm who shall serve both the Kentucky
Retirement Systems and the County Employees Retirement System;
(f) The Authority may promulgate administrative regulations as an authority
or on behalf of the Kentucky Retirement Systems and the County
Employees Retirement System, individually or collectively, provided such
regulations are not inconsistent with the provisions of this section and
KRS 16.505 to 16.652, 61.505, 61.510 to 61.705, and 78.510 to 78.852,
necessary or proper in order to carry out the provisions of this section and
(2)
(3)
duties authorized by KRS 16.505 to 16.652 and 61.510 to 61.705;
(g) Contracting management for administrative services; and
(h) Other tasks or duties as directed solely or jointly by the boards of the
Kentucky Retirement Systems or the County Employees Retirement
System.
The eight (8) member Kentucky Public Pensions Authority shall be composed
of the following individuals:
(a) The chair of the Kentucky Retirement Systems board of trustees;
(b) The chair of the County Employees Retirement System board of trustees;
(c) The investment committee chair of the Kentucky Retirement Systems
board of trustees, unless the investment committee chair is also the chair
of the board of trustees in which case the chair of the Kentucky
Retirement Systems shall appoint an individual who serves on the
investment committee;
(d) The investment committee chair of the County Employees Retirement
System board of trustees, unless the investment committee chair is also
the chair of the County Employees Retirement System board of trustees
in which case the chair of the County Employees Retirement System shall
appoint an individual who serves on the investment committee;
(e) Two additional (2) trustees of the Kentucky Retirement Systems board of
trustees selected by the chair of the Kentucky Retirement Systems board
of trustees of which one (1) shall be a trustee who was elected by the
membership of one (1) of the systems administered by Kentucky
Retirement Systems and one (1) shall be a trustee of Kentucky
Retirement Systems who was appointed by the Governor; and
(f) Two additional (2) trustees of the County Employees Retirement System
board of trustees selected by the chair of the County Employees
Retirement System board of trustees of which one (1) shall be a trustee
who was elected by the membership of the County Employees
Retirement System and one (1) shall be a trustee of the County
Employees Retirement System who was appointed by the Governor.
The Kentucky Public Pensions Authority is hereby granted the powers and
privileges of a corporation, including but not limited to the following powers:
(a) To sue and be sued in its corporate name;
(b) To make bylaws not inconsistent with the law and in accordance with its
duties as provided by this section;
(c) To conduct the business and promote the purposes for which it was
formed;
(d) To carry out the obligations of the authority subject to KRS Chapters 45,
45A, 56, and 57;
(e) To purchase fiduciary liability insurance; and
(f) The Kentucky Public Pensions Authority shall reimburse any authority
member, officer, or employee for any legal expense resulting from a civil
action arising out of the performance of his or her official duties. The
hourly rate of reimbursement for any contract for legal services under this
(4)
(5)
(6)
(7)
paragraph shall not exceed the maximum hourly rate provided in the
Legal Services Duties and Maximum Rate Schedule promulgated by the
Government Contract Review Committee established pursuant to KRS
45A.705, unless a higher rate is specifically approved by the secretary of
the Finance and Administration Cabinet or his or her designee.
Any vacancy which may occur in an appointed position on the Kentucky Public
Pensions Authority shall be filled in the same manner which provides for the
selection of the particular member of the authority. No person shall serve in
more than one (1) position as a member of the authority and if a person holds
more than one (1) position as a member of the authority, he or she shall resign
a position.
(a) Membership on the authority shall not be incompatible with any other
office unless a constitutional incompatibility exists. No authority member
shall serve in more than one (1) position as a member of the authority.
(b) An authority member shall be removed from office upon conviction of a
felony or for a finding of a violation of any provision of KRS 11A.020 or
11A.040 by a court of competent jurisdiction.
(c) A current or former employee of the County Employees Retirement
System, Kentucky Retirement Systems, or the Kentucky Public Pensions
Authority shall not be eligible to serve as a member of the authority.
Kentucky Public Pensions Authority members who do not otherwise receive a
salary from the State Treasury shall receive a per diem of eighty dollars ($80)
for each day they are in session or on official duty, and they shall be
reimbursed for their actual and necessary expenses in accordance with state
administrative regulations and standards, except that the members shall not
receive a per diem or receive reimbursements on the same day they receive a
per diem or reimbursements for service to the Kentucky Retirement Systems
board of trustees or County Employees Retirement Systems board of trustees.
(a) The authority shall meet at least once in each quarter of the year and
may meet in special session upon the call of the chair or the executive
director of the authority.
(b) The authority shall elect a chair and a vice chair. The chair shall not serve
more than four (4) consecutive years as chair or vice chair of the
authority. The vice chair shall not serve more than four (4) consecutive
years as chair or vice chair of the authority. A member who has served
four (4) consecutive years as chair or vice chair of the authority may be
elected chair or vice chair of the authority after an absence of two (2)
years from the positions.
(c) A majority of the authority members shall constitute a quorum and all
actions taken by the authority shall be by affirmative vote of a majority of
the authority members present.
(d) The authority shall post on the authority's Web site and shall make
available to the public:
1.
All meeting notices and agendas of the authority. Notices and
agendas shall be posted to the authority's Web site at least
seventy-two (72) hours in advance of the authority's meetings,
(8)
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(9)
All
except in the case of special or emergency meetings as provided by
KRS 61.823;
2.
All authority minutes or other materials that require adoption or
ratification by the authority. The items listed in this subparagraph
shall be posted within seventy-two (72) hours of adoption or
ratification of the authority;
3.
All bylaws, policies, or procedures adopted or ratified by the
authority; and
4.
A listing of the members of the authority and membership on each
committee established by the authority.
The Kentucky Public Pensions Authority shall appoint or contract for the
services of an executive director and fix the compensation and other
terms of employment for this position without limitation of the provisions of
KRS Chapter 18A, 45A, and KRS 64.640. The executive director shall be
the chief administrative officer of the authority, the Kentucky Retirement
Systems board of trustees, and the County Employees Retirement
System board of trustees. The executive director shall work cooperatively
with the chief executive officers of the Kentucky Retirement Systems and
the County Employees Retirement System.
The Kentucky Public Pensions Authority shall authorize the executive
director to appoint the employees deemed necessary to transact the
duties of the authority for the purposes outlined in subsection (1) of this
section.
Effective April 1, 2021, the Kentucky Public Pensions Authority shall
assume responsibility of administering the staff of the Kentucky
Retirement Systems in order to provide the services established by this
section.
All employees of the Kentucky Public Pensions Authority, except for the
executive director, chief investment officer, and one (1) deputy chief
investment officer, shall be subject to the state personnel system
established pursuant to KRS 18A.005 to 18A.204 and shall have their
salaries determined by the secretary of the Personnel Cabinet.
The authority shall annually report to the Public Pension Oversight Board
the number of employees of the authority, the salary paid to each
employee, and the change in the salaries of each individual employed by
the authority over the prior year.
The authority shall require the executive director and the employees as it
thinks proper to execute bonds for the faithful performance of their duties
notwithstanding the limitations of KRS Chapter 62.
Notwithstanding any other provision of statute to the contrary, including
but not limited to any provision of KRS Chapter 12, the Governor shall
have no authority to change any provision of this section by executive
order or action, including but not limited to reorganizing, replacing,
amending, or abolishing the membership of the Kentucky Public Pensions
Authority.
employees of the authority shall serve during its will and pleasure.
Notwithstanding any statute to the contrary, employees shall not be considered
legislative agents under KRS 6.611.
(10) The Attorney General, or an assistant designated by him or her, may attend
each meeting of the authority and may receive the agenda, board minutes, and
other information distributed to authority members upon request. The Attorney
General may act as legal adviser and attorney for the authority, and the
authority may contract for legal services, notwithstanding the limitations of KRS
Chapter 12 or 13B.
(11) (a) All expenses incurred by or on behalf of the Kentucky Public Pensions
Authority shall be paid by the systems administered by the Kentucky
Retirement Systems or the County Employees Retirement System and
shall be prorated, assigned, or allocated to each system as determined by
Kentucky Public Pensions Authority. Any additional initial costs
determined by the authority to be attributable solely to establishing a
separate County Employees Retirement System board and the Kentucky
Public Pensions Authority as provided by this section and KRS 78.782
shall be paid by the County Employees Retirement System. Any
additional ongoing annual administrative and investment expenses that
occur after the establishment of a separate County Employees
Retirement System board and the Kentucky Public Pensions Authority
that are determined by the authority to be a direct result of establishing a
separate County Employees Retirement System board and the Kentucky
Public Pensions Authority shall be paid by the County Employees
Retirement System.
(b) Any other statute to the contrary notwithstanding, authorization for all
expenditures relating to the administrative operations of the Kentucky
Public Pensions Authority, the Kentucky Retirement Systems, and the
County Employees Retirement System shall be contained in the biennial
budget unit request, branch budget recommendation, and the financial
plan adopted by the General Assembly pursuant to KRS Chapter 48. The
request from the Kentucky Public Pensions Authority shall include any
specific administrative expenses requested by the Kentucky Retirement
Systems board of trustees or the County Employees Retirement System
board of trustees pursuant to KRS 61.645(13) or 78.782(13), as
applicable, that are not otherwise expenses specified by paragraph (a) of
this subsection.
(12) (a) An authority member shall discharge his or her duties as a member of the
authority, including his or her duties as a member of a committee of the
authority:
1.
In good faith;
2.
On an informed basis; and
3.
In a manner he or she honestly believes to be in the best interest of
the County Employees Retirement System and the Kentucky
Retirement Systems, as applicable.
(b) An authority member discharges his or her duties on an informed basis if,
when he or she makes an inquiry into the business and affairs of the
authority, system, or systems or into a particular action to be taken or
(c)
(d)
(e)
(f)
(g)
decision to be made, he or she exercises the care an ordinary prudent
person in a like position would exercise under similar circumstances.
In discharging his or her duties, an authority member may rely on
information, opinions, reports, or statements, including financial
statements and other financial data, if prepared or presented by:
1.
One (1) or more officers or employees of the authority whom the
authority member honestly believes to be reliable and competent in
the matters presented;
2.
Legal counsel, public accountants, actuaries, or other persons as to
matters the authority member honestly believes are within the
person's professional or expert competence; or
3.
A committee of the authority of which he or she is not a member if
the authority member honestly believes the committee merits
confidence.
An authority member shall not be considered as acting in good faith if he
or she has knowledge concerning the matter in question that makes
reliance otherwise permitted by paragraph (c) of this subsection
unwarranted.
Any action taken as a member of the authority, or any failure to take any
action as an authority member, shall not be the basis for monetary
damages or injunctive relief unless:
1.
The authority member has breached or failed to perform the duties
of the member's office in compliance with this section; and
2.
In the case of an action for monetary damages, the breach or failure
to perform constitutes willful misconduct or wanton or reckless
disregard for human rights, safety, or property.
A person bringing an action for monetary damages under this section
shall have the burden of proving by clear and convincing evidence the
provisions of paragraph (e)1. and 2. of this subsection, and the burden of
proving that the breach or failure to perform was the legal cause of
damages suffered by the Kentucky Retirement Systems or County
Employees Retirement System, as applicable.
In discharging his or her administrative duties under this section, an
authority member shall strive to administer the systems in an efficient and
cost-effective manner for the taxpayers of the Commonwealth of
Kentucky and shall take all actions available under the law to contain
costs for the trusts, including costs for participating employers, members,
and retirees.
Effective:April 1, 2021
History: Amended 2021 Ky. Acts ch. 102, sec. 76, effective April 1, 2021. -Created 2020 Ky. Acts ch. 79, sec. 2, effective April 1, 2021.
Legislative Research Commission Note (4/1/2021). This statute was created by
Section 2 of 2020 Ky. Acts ch. 79. Section 45 of that Act reads as follows: "All
administrative decisions made by the Kentucky Retirement Systems board of
trustees prior to April 1, 2021, on behalf of the County Employees Retirement
System, including but not limited to approval for hazardous positions,
administrative decisions, and disability determinations, shall be implemented on
April 1, 2021, and shall not be reversed except under the authority granted by
KRS 78.510 to 78.852 to the County Employees Retirement System board of
trustees or the Kentucky Public Pensions Authority as granted by Section 2 of
this Act [this statute], as applicable, except that the retiree health plans
established for the plan year beginning January 1, 2021, through December 31,
2021, by the Kentucky Retirement Systems board of trustees for recipients of
the County Employees Retirement System shall not be altered by the County
Employees Retirement System board of trustees for that specific plan year. All
administrative regulations promulgated by the Kentucky Retirement Systems
board of trustees prior to April 1, 2021, on behalf of the County Employees
Retirement System shall continue to apply to the County Employees Retirement
System on or after April 1, 2021, and shall not be reversed except under the
authority granted by KRS 78.510 to 78.852 to the County Employees Retirement
System board of trustees."
Legislative Research Commission Note (4/1/2021). This statute was created by
Section 2 of 2020 Ky. Acts ch. 79. In that Act, Section 48 (effective 4/7/2020)
reads as follows: "Notwithstanding any other provision of statute to the contrary,
including but not limited to any provision of KRS Chapter 12: (1) The Governor
shall have no authority to change any provision of KRS 16.505 to 16.652,
61.510 to 61.705, and 78.510 to 78.852 as it relates to reorganizing, replacing,
amending, or abolishing the membership of the County Employees Retirement
System board of trustees as provided by Section 3 of this Act, the Kentucky
Retirement Systems board of trustees as provided by KRS 61.645, or the
Kentucky Public Pensions Authority as provided by Section 2 of this Act [this
statute]; and (2) Effective April 1, 2021, the board of trustees of the Kentucky
Retirement Systems and the County Employees Retirement System shall
include the number and composition of the boards established by Sections 3,
and 4, 46, and 47 of this Act, as applicable respectively."
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