2025 Kentucky Revised Statutes Chapter 161 - School employees -- teachers' retirement and tenure 161.400 Duties of actuary -- Actuarial investigations, valuations, and analyses.
Universal Citation:
KY Rev Stat § 161.400 (2025)
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161.400 Duties of actuary -- Actuarial investigations, valuations, and analyses.
(1)
(a)
(b)
(c)
The board of trustees shall designate as actuary a competent person who shall
be a fellow of the Conference of Consulting Actuaries or a member of the
American Academy of Actuaries. He or she shall be the technical adviser of
the board on matters regarding the operation of the funds of the system and
shall perform such other duties as are required in connection therewith.
1.
At least once in each two (2) year period, the board shall cause an
actuarial investigation to be made of all of the economic experience
under the retirement system, including but not limited to the inflation
rate, investment return, and payroll growth assumptions, relative to the
economic assumptions and funding methods previously adopted by the
board.
2.
At least once in each five (5) year period, the actuary shall make an
actuarial investigation into all of the demographic actuarial assumptions
used, including but not limited to mortality tables, withdrawal rates, and
retirement rate assumptions, relative to the demographic actuarial
assumptions previously adopted by the board.
3.
Each actuarial investigation shall include at a minimum a summary of
the changes in actuarial assumptions and funding methods
recommended in the investigation and the projected impact of the
recommended changes on funding levels, unfunded liabilities, and
actuarially recommended contribution rates for employers over a thirty
(30) year period.
At least annually the actuary shall make an actuarial valuation of the
retirement system. The valuation shall include:
1.
A description of the actuarial assumptions used, and the assumptions
shall be reasonably related to the experience of the system and represent
the actuary's best estimate of anticipated experience;
2.
A description of any funding methods utilized or required by state law in
the development of the actuarial valuation results;
3.
A description of any changes in actuarial assumptions and methods from
the previous year's actuarial valuation;
4.
The actuarially recommended contribution rate for employers for the
upcoming budget periods;
5.
A thirty (30) year projection of the funding levels, unfunded liabilities,
and actuarially recommended contribution rates for employers based
upon the actuarial assumptions, funding methods, and experience of the
system as of the valuation date;
6.
A sensitivity analysis that evaluates the impact of changes in system
assumptions, including but not limited to the investment return
assumption, payroll growth assumption, and medical inflation rates, on
employer contribution rates, funding levels, and unfunded liabilities;
7.
The full actuarial cost of the sick leave program established by KRS
161.155(10) and the full actuarial costs of annual leave program
(2)
(3)
established by KRS 161.540(1)(f), including the total actuarially accrued
liabilities of the sick leave program and the annual leave program
determined and reported separately, and the total actuarial costs to
annually finance each program as a percentage of payroll and in total
dollars broken down by each funding source; and
8.
A breakdown of each individual employer's share of the actuarially
accrued liability as determined solely by the system's consulting actuary
and assigned to each employer based upon the last participating
employer of the member or annuitant as of the valuation date. The
breakdown shall include a value for each individual employer, including
but not limited to each individual school district, each university, each
state agency, and every other individual employer who participates in
the system.
(d) On the basis of the results of the valuations, the board of trustees shall make
necessary changes in the retirement system within the provisions of law and
shall establish the contributions payable by employers and the state specified
in KRS 161.550, including changes prescribed by KRS 161.633, 161.634,
161.635, and 161.636, as applicable.
(e) For any change in actuarial assumptions, funding methods, retiree health
insurance premiums and subsidies, or any other decisions made by the board
that impact system liabilities and actuarially recommended contribution rates
for employers and that are not made in conjunction with the actuarial
investigations required by paragraph (b) of this subsection, an actuarial
analysis shall be completed showing the projected impact of the changes on
funding levels, unfunded liabilities, and actuarially recommended contribution
rates for employers over a thirty (30) year period.
Actuarial factors and actuarial cost factor tables in use by the retirement system for
all purposes shall be determined by the actuary of the retirement system and
approved by the board of trustees by resolution and implemented without the
necessity of an administrative regulation.
A copy of each actuarial investigation, actuarial analysis, and valuation required by
subsection (1) of this section shall be forwarded electronically to the Legislative
Research Commission no later than ten (10) days after receipt by the board, and the
Legislative Research Commission shall distribute the information received to the
committee staff and co-chairs of any committee that has jurisdiction over the
Teachers' Retirement System. The actuarial valuation required by subsection (1)(c)
of this section shall be submitted no later than November 15 following the close of
the fiscal year.
Effective: June 27, 2025
History: Amended 2025 Ky. Acts ch. 64, sec. 2, effective June 27, 2025; and ch. 138,
sec. 5, effective March 31, 2025. -- Amended 2022 Ky. Acts ch. 165, sec. 4,
effective July 14, 2022. -- Amended 2021 Ky. Acts ch. 64, sec. 4, effective June 29,
2021; and repealed, reenacted, and amended ch. 157, sec. 12, effective January 1,
2022. – Ky. Acts ch, 64, sec. 4, effective June 29, 2021. Amended 2018 Ky. Acts ch.
107, sec. 46, effective July 14, 2018. -- Amended 2016 Ky. Acts ch. 133, sec. 6,
effective July 15, 2016. -- Amended 2002 Ky. Acts ch. 275, sec. 7, effective July 1,
2002. -- Amended 2000 Ky. Acts ch. 498, sec. 7, effective July 1, 2000. -- Amended
1990 Ky. Acts ch. 442, sec. 19, effective July 1, 1990; and ch. 476, Pt. V, sec. 497,
effective July 13, 1990. -- Amended 1980 Ky. Acts ch. 246, sec. 3, effective July 15,
1980. -- Amended 1978 Ky. Acts ch. 152, sec. 2, effective March 28, 1978. -Amended 1976 Ky. Acts ch. 351, sec. 4, effective July 1, 1976. -- Amended 1962
Ky. Acts ch. 64, sec. 3. -- Amended 1960 Ky. Acts ch. 44, sec. 5. -- Recodified 1942
Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4506b-20.
Legislative Research Commission Note (6/27/2025). This statute was amended by 2025
Ky. Acts chs. 64 and 138, which do not appear to be in conflict and have been
codified together.
Legislative Research Commission Note (12/13/2018). On December 13, 2018, the
Kentucky Supreme Court ruled that the passage of 2018 SB 151 (2018 Ky. Acts ch.
107), did not comply with the three-readings rule of Kentucky Constitution Section
46 and that the legislation is, therefore, constitutionally invalid and declared void.
That ruling applies to changes made to this statute in that Act.
Legislative Research Commission Note (7/13/90). The Act amending this section
prevails over the repeal and reenactment in House Bill 940, Acts Ch. 476, pursuant
to Section 653(1) of Acts Ch. 476.
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