2021 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 -- Purpose -- Participation, regulation, and termination.
Universal Citation:
KY Rev Stat § 61.701 (2021)
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61.701
Kentucky Retirement Systems insurance trust fund -- Purpose -Participation, regulation, and termination.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(a)
There is hereby maintained a trust fund known as "Kentucky Retirement
Systems insurance trust fund."
(b) Insurance trust fund assets shall be deemed trust funds to be held and
applied solely as provided in this section. Assets 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, County Employees Retirement System, or State
Police Retirement System.
(c) The trust fund has been established as a trust exempt from taxation
under 26 U.S.C. sec. 115.
The insurance trust fund has been 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 78.5536 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, County
Employees Retirement System, and State Police Retirement System, 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 boards shall manage the assets of the insurance fund 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
insurance trust fund.
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
insurance trust funds.
If the insurance trust fund is terminated, the assets in the insurance 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
insurance 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
shall not diminish or expand the rights of any recipients, employees, or
dependents to health benefits.
Effective:April 1, 2021
History: Amended 2021 Ky. Acts ch. 102, sec. 79, effective April 1, 2021. -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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