2021 Kentucky Revised Statutes Chapter 61 - General provisions as to offices and officers -- social security for public employees -- employees retirement system 61.645 Board of trustees -- Powers -- Members -- Chief executive officer, general counsel, and other employees -- Appeals -- Other duties -- Limitation on Governor's authority -- Annual financial report -- Trustee education program -- Information made available to public.
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61.645 Board of trustees -- Powers -- Members -- Chief executive officer,
general counsel, and other employees -- Appeals -- Other duties -Limitation on Governor's authority -- Annual financial report -- Trustee
education program -- Information made available to public.
(1)
The Kentucky Employees Retirement System and State Police Retirement
System shall be administered by the board of trustees of the Kentucky
Retirement Systems composed of nine (9) members, who shall be selected as
follows:
(a) One (1) trustee, who shall be a member or retired from the State Police
Retirement System, elected by the members and retired members of the
State Police Retirement System;
(b) Two (2) trustees, who shall be members or retired from the Kentucky
Employees Retirement System, elected by the members and retired
members of the Kentucky Employees Retirement System;
(c) Six (6) trustees, appointed by the Governor of the Commonwealth,
subject to Senate confirmation in accordance with KRS 11.160 for each
appointment or reappointment. Of the six (6) trustees appointed by the
Governor, three (3) trustees shall have investment experience and three
(3) trustees shall have retirement experience;
(d) For purposes of paragraph (c) of this subsection, a trustee with
"investment experience" means an individual who does not have a conflict
of interest, as provided by KRS 61.655, and who has at least ten (10)
years of experience in one (1) of the following areas of expertise:
1.
A portfolio manager acting in a fiduciary capacity;
2.
A professional securities analyst or investment consultant;
3.
A current or retired employee or principal of a trust institution,
investment or finance organization, or endowment fund acting in an
investment-related capacity;
4.
A chartered financial analyst in good standing as determined by the
CFA Institute; or
5.
A university professor, teaching investment-related studies; and
(e) For purposes of paragraph (c) of this subsection, a trustee with
"retirement experience" means an individual who does not have a conflict
of interest, as provided by KRS 61.655, and who has at least ten (10)
years of experience in one (1) of the following areas of expertise:
1.
Experience in retirement or pension plan management;
2.
A certified public accountant with relevant experience in retirement
or pension plan accounting;
3.
An actuary with relevant experience in retirement or pension plan
consulting;
4.
An attorney licensed to practice law in the Commonwealth of
Kentucky with relevant experience in retirement or pension plans; or
5.
A current or former university professor whose primary area of
emphasis is economics or finance.
(2)
(3)
(4)
The board 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;
(c) To conduct the business and promote the purposes for which it was
formed;
(d) Except as provided in KRS 61.650(6), to contract for investment
counseling, auditing, medical, and other professional or technical services
as required to carry out the obligations of the board subject to KRS
Chapters 45, 45A, 56, and 57. Actuarial consulting services shall be
provided by a firm hired by the Kentucky Public Pensions Authority;
(e) To purchase fiduciary liability insurance;
(f) Except as provided in KRS 61.650(6), to acquire, hold, sell, dispose of,
pledge, lease, or mortgage, the goods or property necessary to exercise
the board's powers and perform the board's duties subject to KRS
Chapters 45, 45A, and 56; and
(g) The board shall reimburse any trustee, 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 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.
(a) Notwithstanding the provisions of subsection (1) of this section, each
trustee shall serve a term of four (4) years or until his or her successor is
duly qualified except as otherwise provided in this section. An elected
trustee or a trustee appointed by the Governor under subsection (1)(c) of
this section, shall not serve more than three (3) consecutive four (4) year
terms. An elected trustee or a trustee appointed by the Governor under
subsection (1)(c) of this section, who has served three (3) consecutive
terms may be elected or appointed again after an absence of four (4)
years from the board.
(b) The term limits established by paragraph (a) of this subsection shall apply
to trustees serving on or after July 1, 2012, and all terms of office served
prior to July 1, 2012, shall be used to determine if the trustee has
exceeded the term limits provided by paragraph (a) of this subsection.
(a) The trustees selected by the membership of each of the various
retirement systems shall be elected by ballot. For each trustee to be
elected, the board may nominate, not less than six (6) months before a
term of office of a trustee is due to expire, three (3) constitutionally eligible
individuals.
(b) Individuals may be nominated by the retirement system members which
are to elect the trustee by presenting to the executive director, not less
than four (4) months before a term of office of a trustee is due to expire, a
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
petition, bearing the name, last four (4) digits of the Social Security
number, and signature of no less than one-tenth (1/10) of the number
voting in the last election by the retirement system members.
Within four (4) months of the nominations made in accordance with
paragraphs (a) and (b) of this subsection, the executive director shall
cause to be prepared an official ballot. The ballot shall include the name,
address, and position title of each individual nominated by the board and
by petition. Provisions shall also be made for write-in votes.
Except as provided by paragraph (j) of this subsection, the ballots shall
be distributed to the eligible voters by mail to their last known residence
address.
The ballots shall be addressed to the Kentucky Retirement Systems in
care of a predetermined box number at a United States Post Office or
submitted electronically as provided by paragraph (j) of this subsection.
Access to this post office box shall be limited to the board's contracted
firm. The individual receiving a plurality of votes shall be declared elected.
The eligible voter shall cast his or her ballot by selecting the candidate of
his or her choice. He or she shall sign and mail the ballot or submit the
electronic ballot at least thirty (30) days prior to the date the term to be
filled is due to expire. The latest mailing date, or date of submission in the
case of electronic ballots, shall be provided on the ballot.
The board's contracted firm shall report in writing the outcome to the chair
of the board of trustees. Cost of an election shall be payable from the
funds of the system for which the trustee is elected.
For purposes of this subsection, an eligible voter shall be a person who
was a member of the retirement system on December 31 of the year
preceding the election year.
Each individual who submits a request to be nominated by the board
under paragraph (a) of this subsection and each individual who is
nominated by the membership under paragraph (b) of this subsection
shall:
1.
Complete an application developed by the retirement systems which
shall include but not be limited to a disclosure of any prior felonies
and any conflicts of interest that would hinder the individual's ability
to serve on the board;
2.
Submit a resume detailing the individual's education and
employment history and a cover letter detailing the member's
qualifications for serving as trustee to the board; and
3.
Authorize the systems to have a criminal background check
performed. The criminal background check shall be performed by
the Department of Kentucky State Police.
In lieu of the ballots mailed to members and retired members as provided
by this subsection, the systems may by promulgation of administrative
regulation pursuant to KRS Chapter 13A conduct trustee elections using
electronic ballots, except that the systems shall mail a paper ballot upon
request of any eligible voter.
(5)
(6)
(7)
(8)
(9)
(a)
Any vacancy which may occur in an appointed position during a term of
office shall be filled in the same manner which provides for the selection
of the particular trustee, and any vacancy which may occur in an elected
position during a term of office shall be filled by appointment by a majority
vote of the remaining elected trustees with a person selected from the
system in which the vacancy occurs; however, any vacancy shall be filled
only for the duration of the unexpired term. In the event of a vacancy of an
elected trustee during a term of office, Kentucky Retirement Systems
shall notify members of the system in which the vacancy occurs of the
vacancy and the opportunity to be considered for the vacant position. Any
vacancy during a term of office shall be filled within ninety (90) days of the
position becoming vacant.
(b) Any appointments or reappointments to an appointed position on the
board shall be made no later than thirty (30) days prior to an appointed
member's term of office ending.
(a) Membership on the board of trustees shall not be incompatible with any
other office unless a constitutional incompatibility exists. No trustee shall
serve in more than one (1) position as trustee on the board; and if a
trustee holds more than one (1) position as trustee on the board, he or
she shall resign a position.
(b) A trustee 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 Kentucky Retirement Systems, County
Employees Retirement System, or the Kentucky Public Pensions
Authority shall not be eligible to serve as a member of the board.
Trustees 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.
(a) The board 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 chief executive
officer.
(b) The board 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 board.
The vice-chair shall not serve more than four (4) consecutive years as
chair or vice-chair of the board. A trustee who has served four (4)
consecutive years as chair or vice-chair of the board may be elected chair
or vice-chair of the board after an absence of two (2) years from the
positions.
(c) A majority of the trustees shall constitute a quorum and all actions taken
by the board shall be by affirmative vote of a majority of the trustees
present.
(a) The board of trustees shall appoint or contract for the services of a chief
executive officer and general counsel and fix the compensation and other
terms of employment for these positions without limitation of the
provisions of KRS Chapters 18A and 45A and KRS 64.640. The chief
executive officer shall serve as the legislative and executive adviser to the
board. The general counsel shall serve as legal adviser to the board. The
chief executive officer and general counsel shall work with the executive
director of the Kentucky Public Pensions Authority to carry out the
provisions of KRS 16.505 to 16.652 and 61.510 to 61.705. The executive
director of the Kentucky Public Pensions Authority shall be the chief
administrative officer of the board.
(b) Prior to April 1, 2021, the board of trustees shall authorize the executive
director to appoint the employees deemed necessary to transact the
business of the system. Effective April 1, 2021, the responsibility of
appointing employees and managing personnel needs shall be
transferred to the Kentucky Public Pensions Authority established by KRS
61.505.
(c) The board shall require the chief executive officer and may require the
general counsel to execute bonds for the faithful performance of his or her
duties notwithstanding the limitations of KRS Chapter 62.
(d) The board shall have a system of accounting established by the Kentucky
Public Pensions Authority.
(e) The board shall do all things, take all actions, and promulgate all
administrative regulations, not inconsistent with the provisions of KRS
16.505 to 16.652 and 61.510 to 61.705, necessary or proper in order to
carry out the provisions of KRS 16.505 to 16.652 and 61.510 to 61.705.
Notwithstanding any other evidence of legislative intent, it is hereby
declared to be the controlling legislative intent that the provisions of KRS
16.505 to 16.652 and 61.510 to 61.705 conform with federal statute or
regulation and meet the qualification requirements under 26 U.S.C. sec.
401(a), applicable federal regulations, and other published guidance.
Provisions of KRS 16.505 to 16.652 and 61.510 to 61.705 which conflict
with federal statute or regulation or qualification under 26 U.S.C. sec.
401(a), applicable federal regulations, and other published guidance shall
not be available. The board shall have the authority to promulgate
administrative regulations to conform with federal statute and regulation
and to meet the qualification requirements under 26 U.S.C. sec. 401(a),
including an administrative regulation to comply with 26 U.S.C. sec.
401(a)(9).
(f) 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 KRS 16.505 to 16.652 and
61.510 to 61.705 by executive order or action, including but not limited to
reorganizing, replacing, amending, or abolishing the membership of the
Kentucky Retirement Systems board of trustees.
(10) Notwithstanding any statute to the contrary, employees shall not be considered
legislative agents under KRS 6.611.
(11) The Attorney General, or an assistant designated by him or her, may attend
each meeting of the board and may receive the agenda, board minutes, and
other information distributed to trustees of the board upon request. The
Attorney General may act as legal adviser and attorney for the board, and the
(12)
(13)
(14)
(15)
board may contract for legal services, notwithstanding the limitations of KRS
Chapter 12 or 13B.
(a) The system shall publish an annual financial report showing all receipts,
disbursements, assets, and liabilities. The annual report shall include a
copy of an audit conducted in accordance with generally accepted
auditing standards. Except as provided by paragraph (b) of this
subsection, the board may select an independent certified public
accountant or the Auditor of Public Accounts to perform the audit. If the
audit is performed by an independent certified public accountant, the
Auditor of Public Accounts shall not be required to perform an audit
pursuant to KRS 43.050(2)(a), but may perform an audit at his or her
discretion. All proceedings and records of the board shall be open for
inspection by the public. The system shall make copies of the audit
required by this subsection available for examination by any member,
retiree, or beneficiary in the offices of the Kentucky Public Pensions
Authority and in other places as necessary to make the audit available to
all members, retirees, and beneficiaries. A copy of the annual audit shall
be sent to the Legislative Research Commission no later than ten (10)
days after receipt by the board.
(b) At least once every five (5) years, the Auditor of Public Accounts shall
perform the audit described by this subsection, and the system shall
reimburse the Auditor of Public Accounts for all costs of the audit. The
Auditor of Public Accounts shall determine which fiscal year during the
five (5) year period the audit prescribed by this paragraph will be
completed.
All expenses incurred by or on behalf of the system and the board in the
administration of the system during a fiscal year shall be paid from the
retirement allowance account, including any administrative expenses for the
Kentucky Public Pensions Authority that are assigned to the Kentucky
Retirement Systems by KRS 61.505. The board shall submit any administrative
expenses that are specific to the Kentucky Retirement Systems that are not
otherwise covered by KRS 61.505(11)(a).
Any person adversely affected by a decision of the board, except as provided
under subsection (16) of this section or KRS 61.665, involving KRS 16.505 to
16.652 and 61.510 to 61.705, may appeal the decision of the board to the
Franklin Circuit Court within sixty (60) days of the board action.
(a) A trustee shall discharge his or her duties as a trustee, including his or
her duties as a member of a committee:
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 Kentucky Retirement Systems.
(b) A trustee discharges his or her duties on an informed basis if, when he or
she makes an inquiry into the business and affairs of the Kentucky
Retirement Systems or into a particular action to be taken or decision to
be made, he or she exercises the care an ordinary prudent person in a
like position would exercise under similar circumstances.
(c)
In discharging his or her duties, a trustee 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 Kentucky Retirement
Systems whom the trustee honestly believes to be reliable and
competent in the matters presented;
2.
Legal counsel, public accountants, actuaries, or other persons as to
matters the trustee honestly believes are within the person's
professional or expert competence; or
3.
A committee of the board of trustees of which he or she is not a
member if the trustee honestly believes the committee merits
confidence.
(d) A trustee 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.
(e) Any action taken as a trustee, or any failure to take any action as a
trustee, shall not be the basis for monetary damages or injunctive relief
unless:
1.
The trustee has breached or failed to perform the duties of the
trustee'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.
(f) 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.
(g) Nothing in this section shall eliminate or limit the liability of any trustee for
any act or omission occurring prior to July 15, 1988.
(h) In discharging his or her administrative duties under this section, a trustee
shall strive to administer the retirement system 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.
(16) When an order by the system substantially impairs the benefits or rights of a
member, retired member, or recipient, except action which relates to
entitlement to disability benefits, or when an employer disagrees with an order
of the system as provided by KRS 61.598, the affected member, retired
member, recipient, or employer may request a hearing to be held in
accordance with KRS Chapter 13B. The board may establish an appeals
committee whose members shall be appointed by the chair and who shall have
authority to act upon the recommendations and reports of the hearing officer on
behalf of the board. The member, retired member, recipient, or employer
aggrieved by a final order of the board following the hearing may appeal the
decision to the Franklin Circuit Court, in accordance with KRS Chapter 13B.
The board may establish a joint administrative appeals committee with the
County Employees Retirement System and may also establish a joint disability
appeals committee with the County Employees Retirement System.
(17) The board shall give the Kentucky Education Support Personnel Association
twenty-four (24) hours notice of the board meetings, to the extent possible.
(18) The board shall establish a formal trustee education program for all trustees of
the board. The program shall include but not be limited to the following:
(a) A required orientation program for all new trustees elected or appointed
to the board. The orientation program shall include training on:
1.
Benefits and benefits administration;
2.
Investment concepts, policies, and current composition and
administration of retirement systems investments;
3.
Laws, bylaws, and administrative regulations pertaining to the
retirement systems and to fiduciaries; and
4.
Actuarial and financial concepts pertaining to the retirement
systems.
If a trustee fails to complete the orientation program within one (1) year
from the beginning of his or her first term on the board, the retirement
systems shall withhold payment of the per diem and travel expenses due
to the board member under this section and KRS 16.640 until the trustee
has completed the orientation program;
(b) Annual required training for board members on the administration,
benefits, financing, and investing of the retirement systems. If a trustee
fails to complete the annual required training during the calendar or fiscal
year, the retirement systems shall withhold payment of the per diem and
travel expenses due to the board member under this section and KRS
16.640 until the board member has met the annual training requirements;
and
(c) The retirement systems shall incorporate by reference in an
administrative regulation, pursuant to KRS 13A.2251, the trustee
education program.
(19) In order to improve public transparency regarding the administration of the
systems, the board of trustees shall adopt a best practices model by posting
the following information to the Kentucky Public Pensions Authority's Web site
and shall make available to the public:
(a) Meeting notices and agendas for all meetings of the board. Notices and
agendas shall be posted to the Kentucky Public Pensions Authority's Web
site at least seventy-two (72) hours in advance of the board or committee
meetings, except in the case of special or emergency meetings as
provided by KRS 61.823;
(b) The Comprehensive Annual Financial Report with the information as
follows:
1.
A general overview and update on the retirement systems by the
executive director;
2.
3.
4.
5.
(c)
(d)
(e)
(f)
(g)
(h)
(i)
A listing of the board of trustees;
A listing of key staff;
An organizational chart;
Financial information, including a statement of plan net assets, a
statement of changes in plan net assets, an actuarial value of
assets, a schedule of investments, a statement of funded status and
funding progress, and other supporting data;
6.
Investment information, including a general overview, a list of the
retirement system's professional consultants, a total net of fees
return on retirement systems investments over a historical period, an
investment summary, contracted investment management
expenses, transaction commissions, and a schedule of investments;
7.
The annual actuarial valuation report on the pension benefit and the
medical insurance benefit; and
8.
A general statistical section, including information on contributions,
benefit payouts, and retirement systems' demographic data;
All external audits;
All board minutes or other materials that require adoption or ratification by
the board of trustees. The items listed in this paragraph shall be posted
within seventy-two (72) hours of adoption or ratification of the board;
All bylaws, policies, or procedures adopted or ratified by the board of
trustees;
The retirement systems' summary plan description;
A document containing an unofficial copy of the statutes governing the
systems administered by Kentucky Retirement Systems;
A listing of the members of the board of trustees and membership on
each committee established by the board, including any investment
committees;
All investment holdings in aggregate, fees, and commissions for each
fund administered by the board, which shall be updated on a quarterly
basis for fiscal years beginning on or after July 1, 2017. The systems shall
request from all managers, partnerships, and any other available sources
all information regarding fees and commissions and shall, based on the
requested information received:
1.
Disclose the dollar value of fees and commissions paid to each
individual manager or partnership;
2.
Disclose the dollar value of any profit sharing, carried interest, or
any other partnership incentive arrangements, partnership
agreements, or any other partnership expenses received by or paid
to each manager or partnership; and
3.
As applicable, report each fee or commission by manager or
partnership consistent with standards established by the Institutional
Limited Partners Association (ILPA).
In addition to the requirements of this paragraph, the systems shall also
disclose the name and address of all individual underlying managers or
partners in any fund of funds in which system assets are invested;
(j) An update of net of fees investment returns, asset allocations, and the
performance of the funds against benchmarks adopted by the board for
each fund, for each asset class administered by the board, and for each
manager. The update shall be posted on a quarterly basis for fiscal years
beginning on or after July 1, 2017;
(k) A searchable database of the systems' expenditures and a listing of each
individual employed by the systems along with the employee's salary or
wages. In lieu of posting the information required by this paragraph to the
Kentucky Public Pensions Authority's Web site, the systems may provide
the information through a Web site established by the executive branch to
inform the public about executive branch agency expenditures and public
employee salaries and wages;
(l) All contracts or offering documents for services, goods, or property
purchased or utilized by the systems; and
(m) Information regarding the systems' financial and actuarial condition that is
easily understood by the members, retired members, and the public.
(20) Notwithstanding the requirements of subsection (19) of this section, the
retirement systems shall not be required to furnish information that is protected
under KRS 61.661, exempt under KRS 61.878, or that, if disclosed, would
compromise the retirement systems' ability to competitively invest in real estate
or other asset classes, except that no provision of this section or KRS 61.878
shall exclude disclosure and review of all contracts, including investment
contracts, by the board, the Auditor of Public Accounts, and the Government
Contract Review Committee established pursuant to KRS 45A.705 or the
disclosure of investment fees and commissions as provided by this section. If
any public record contains material which is not excepted under this section,
the systems shall separate the excepted material by removal, segregation, or
redaction, and make the nonexcepted material available for examination.
(21) Notwithstanding any other provision of KRS 16.505 to 16.652 and 61.510 to
61.705 to the contrary, no funds of the systems administered by Kentucky
Retirement Systems, including fees and commissions paid to an investment
manager, private fund, or company issuing securities, who manages systems
assets, shall be used to pay fees and commissions to placement agents. For
purposes of this subsection, "placement agent" means a third-party individual,
who is not an employee, or firm, wholly or partially owned by the entity being
hired, who solicits investments on behalf of an investment manager, private
fund, or company issuing securities.
Effective:April 1, 2021
History: Amended 2021 Ky. Acts ch. 102, sec. 66, effective April 1, 2021. -Amended 2020 Ky. Acts ch. 79, sec. 4, effective April 1, 2021. -- Amended 2019
Ky. Acts ch. 182, sec. 1, effective June 27, 2019. -- Amended 2017 Ky. Acts ch.
12, sec. 3, effective March 10, 2017. -- Amended 2013 Ky. Acts ch. 120, sec.
65, effective July 1, 2013. -- Amended 2012 Ky. Acts ch. 75, sec. 8, effective
April 11, 2012. -- Amended 2010 Ky. Acts ch. 127, sec. 1, effective July 15,
2010. -- Amended 2009 Ky. Acts ch. 77, sec. 19, effective June 25, 2009. -Amended 2008 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 21, effective June 27,
2008. -- Amended 2004 Ky. Acts ch. 36, sec. 23, effective July 13, 2004. -Amended 2003 Ky. Acts ch. 169, sec. 10, effective March 31, 2003. -- Amended
2002 Ky. Acts ch. 52, sec. 11, effective July 15, 2002. -- Amended 2000 Ky.
Acts ch. 385, sec. 23, effective July 14, 2000. -- Amended 1998 Ky. Acts ch.
105, sec. 15, effective July 15, 1998; ch. 154, sec. 59, effective July 15, 1998;
and ch. 246, sec. 2, effective July 15, 1998. -- Amended 1996 Ky. Acts ch. 167,
sec. 17, effective July 15, 1996; and ch. 318, sec. 29, effective July 15, 1996. -Amended 1994 Ky. Acts ch. 406, sec. 3, effective July 15, 1994; and ch. 485,
sec. 21, effective July 15, 1994. Amended 1992 Ky. Acts ch. 240, sec. 40,
effective July 14, 1992; and ch. 437, sec. 1, effective July 14, 1992. -- Amended
1990 Ky. Acts ch. 299, sec. 1, effective July 13, 1990; ch. 489, sec. 6, effective
July 13, 1990; and ch. 496, sec. 39, effective July 13, 1990. -- Amended 1988
Ky. Acts ch. 349, sec. 24, effective July 15, 1988; and ch. 351, sec. 3, effective
July 15, 1988. -- Amended 1986 Ky. Acts ch. 90, sec. 20, effective July 15,
1986. -- Amended 1984 Ky. Acts ch. 232, sec. 2, effective July 13, 1984. -Amended 1982 Ky. Acts ch. 448, sec. 65, effective July 15, 1982. -- Amended
1980 Ky. Acts ch. 186, sec. 13, effective July 15, 1980; and ch. 246, sec. 8,
effective July 15, 1980. -- Amended 1978 Ky. Acts ch. 110, sec. 100, effective
January 1, 1979. -- Amended 1976 Ky. Acts ch. 321, secs. 29 and 40. -Amended 1974 Ky. Acts ch. 128, sec. 26. -- Amended 1972 Ky. Acts ch. 116,
sec. 48. -- Amended 1962 Ky. Acts ch. 58, sec. 19. -- Amended 1960 Ky. Acts
ch. 165, Part II, sec. 14. -- Amended 1956 (1st Extra. Sess.) Ky. Acts ch. 7, Art.
XV, sec. 1. -- Created 1956 Ky. Acts ch. 110, sec. 28.
Legislative Research Commission Note (4/1/2021). This statute was amended by
Section 4 of 2020 Ky. Acts ch. 79. Section 46 of that Act reads as follows: "The
three trustees elected by the County Employees Retirement System
membership to serve a term on the Kentucky Retirement Systems board of
trustees that includes April 1, 2021, shall serve as the three elected trustees of
the County Employees Retirement System board of trustees as provided by
Section 3 of this Act and shall serve for the duration of the terms for which they
were elected. The two trustees elected by the Kentucky Employees Retirement
System membership and the one trustee elected by the State Police Retirement
System membership who are serving as trustees of the Kentucky Retirement
Systems board of trustees immediately prior to the effective date of this Act shall
serve as the three elected trustees of the Kentucky Retirement Systems board
of trustees as provided by Section 4 of this Act and shall serve for the duration
of the terms for which they were elected. The three trustees who were appointed
by a Governor to the Kentucky Retirement Systems board prior to April 1, 2021,
who were selected by a Governor from lists submitted by the Kentucky
Association of Counties, the Kentucky League of Cities, and the Kentucky
School Boards Association and serving on the Kentucky Retirement Systems
board immediately prior to April 1, 2021, shall, notwithstanding any other
provision of Section 3 of this Act to the contrary, serve on the County
Employees Retirement System board of trustees as provided by Section 3 of
this Act for the duration of their term of office and shall be considered the three
trustees appointed by the Governor who have retirement experience as
provided by subsection (1)(b) and (1)(d) of Section 3 of this Act. Notwithstanding
any other provision of Section 4 of this Act [this statute] to the contrary, the six
trustees with investment experience appointed by a Governor to the Kentucky
Retirement Systems board prior to April 1, 2021, and serving on the Kentucky
Retirement Systems board immediately prior to April 1, 2021, shall serve for the
duration of their term of office as the appointed trustees with investment
experience and retirement experience of the newly constituted Kentucky
Retirement Systems board of trustees effective April 1, 2021."
Legislative Research Commission Note (4/1/2021). This statute was amended by
Section 4 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; 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 [this
statute], 46, and 47 of this Act, as applicable respectively."
Legislative Research Commission Note (6/27/2019). Section 5 of 2019 Ky. Acts
ch. 182 reads, "Notwithstanding the provisions of Section 1 of this Act [this
statute] or 2013 Ky. Acts ch. 120 to the contrary, the successor of the County
Employees Retirement System trustee whose election as trustee was completed
in accordance with 2013 Ky. Acts ch. 120, sec. 82, shall be elected during the
period of January 1, 2021, through March 31, 2021, in accordance with
procedures set forth in Section 1 of this Act [this statute] and the election policy
adopted by the board of trustees, but shall not take office until November 1,
2021, and shall serve a term of office ending March 31, 2025."
Legislative Research Commission Note (3/10/2017). 2017 Ky. Acts ch. 12, sec.
12 provided that amendments made to subsections (2) and (21) of this statute in
2017 Ky. Acts ch. 12, sec. 3 governing placement agents and contracts or
offerings entered into by the state-administered retirement systems shall apply
to contracts and offerings established or contracts or offerings renewed on or
after July 1, 2017.
Legislative Research Commission Note (3/10/2017). 2017 Ky. Acts ch. 12, sec.
13 provided that amendments made to subsection (2) of this statute in 2017 Ky.
Acts ch. 12, sec. 3 governing the application of the Model Procurement Code,
KRS Chapter 45A, and related statutes to the state-administered retirement
systems, shall apply to contracts and offerings established or contracts or
offerings renewed on or after July 1, 2017.
Legislative Research Commission Note (3/10/2017). 2017 Ky. Acts ch. 12, sec.
14 provided that amendments made to subsection (1)(e) of this statute in 2017
Ky. Acts ch. 12, sec. 3 that require Senate confirmation of, and modify the
requirements for, gubernatorial appointments to the Judicial Form Retirement
System and the Kentucky Retirement Systems boards of trustees shall apply to
appointments or reappointments made on or after March 10, 2017, the effective
date of that Act.
Legislative Research Commission Note (4/11/2012). 2012 Ky. Acts ch. 75, sec.
18, provides that the amendments made to subsection (21) of this statute
regarding unregulated placement agents by 2012 Ky. Acts ch. 75, sec. 8, "shall
apply to contracts established or contracts renewed on or after July 1, 2012."
Legislative Research Commission Note (6/27/2008). The Reviser of Statutes has
altered the numbering of subsection (18)(a) of this statute from the way it
appears in 2008 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 21, under the authority of
KRS 7.136(1)(c).
Legislative Research Commission Note (6/27/2008). 2008 (1st Extra. Sess.) Ky.
Acts ch. 1, sec. 44, provides "The provisions of subsection (3) of Section 21 of
this Act (this statute)... that reduce the term limits of elected or appointed
members of the board of trustees of the Kentucky Retirement Systems... shall
apply to terms of office beginning after July 1, 2008."
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