UNOFFICIAL COPY 22 RS BR 9
Page 1 of 20
XXXX Jacketed
AN ACT relating to Kentucky Employees Retirement System employers. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 61.565 is amended to read as follows: 3
(1) (a) Each employer participating in the State Police Retirement System as 4
provided for in KRS 16.505 to 16.652 and the Kentucky Employees 5
Retirement System as provided for in KRS 61.510 to 61.705 shall contribute 6
annually to the respective retirement system an amount determined by the 7
actuarial valuation completed in accordance with KRS 61.670 and as specified 8
by this section. Employer contributions for each respective retirement system 9
shall be equal to the sum of the "normal cost contribution" and the "actuarially 10
accrued liability contribution." 11
(b) For purposes of this section, the normal cost contribution shall be computed as 12
a percentage of pay and shall be an annual amount that is sufficient when 13
combined with employee contributions to fund benefits earned during the year 14
in the respective system. The amount shall be: 15
1. Paid as a percentage of creditable compensation reported for each 16
employee participating in the system and accruing benefits; and 17
2. The same percentage of pay for all employees who are participating in 18
the same retirement system, except that separate percentage rates shall 19
be developed in each system for those employers whose employees are 20
participating in hazardous duty retirement coverage as provided by KRS 21
61.592. 22
(c) For purposes of this section, the actuarially accrued liability contribution for 23
all employers, except for contributions paid by nonhazardous employers in the 24
Kentucky Employees Retirement System on or after July 1, 2021, shall be: 25
1. Computed by amortizing the total unfunded actuarially accrued liability 26
of each system over a closed period of thirty (30) years beginning with 27 UNOFFICIAL COPY 22 RS BR 9
Page 2 of 20
XXXX Jacketed
the 2019 actuarial valuation using the level percentage of payroll 1
amortization method, except that any increase or decrease in the 2
unfunded actuarially accrued liability occurring after the completion of 3
the 2019 actuarial valuation shall be amortized over a closed period of 4
twenty (20) years beginning with the actuarial valuation in which the 5
increase or decrease in the unfunded actuarially accrued liability is 6
recognized. An increase or decrease in the unfunded actuarially accrued 7
liability may result from, but not be limited to, legislative changes to 8
benefits, changes in actuarial methods or assumptions, or actuarial gains 9
or losses; 10
2. Paid as a percentage of payroll on the creditable compensation reported 11
for each employee participating in the system and accruing benefits; and 12
3. The same percentage of pay for all employees who are participating in 13
the same retirement system, except that separate percentage rates shall 14
be developed in each system for those employers whose employees are 15
participating in hazardous duty retirement coverage as provided by KRS 16
61.592. 17
(d) 1. For purposes of this section, the actuarially accrued liability contribution 18
for nonhazardous employers in the Kentucky Employees Retirement 19
System on or after July 1, 2021: 20
a. Shall be an annual dollar amount that is sufficient to amortize the 21
total unfunded actuarially accrued liability of the system over a 22
closed period of thirty (30) years beginning with the 2019 actuarial 23
valuation using the level percentage of payroll amortization 24
method, except that any increase or decrease in the unfunded 25
actuarially accrued liability occurring after the completion of the 26
2019 actuarial valuation shall be amortized over a closed period of 27 UNOFFICIAL COPY 22 RS BR 9
Page 3 of 20
XXXX Jacketed
twenty (20) years beginning with the actuarial valuation in which 1
the increase or decrease in the unfunded actuarially accrued 2
liability is recognized. An increase or decrease in the unfunded 3
actuarially accrued liability may result from but not be limited to 4
legislative changes to benefits, changes in actuarial methods or 5
assumptions, or actuarial gains or losses; 6
b. Shall be prorated to each individual nonhazardous employer in the 7
Kentucky Employees Retirement System by multiplying the annual 8
dollar amount of the actuarially accrued liability contribution for 9
the system as determined by subdivision a. of this subparagraph by 10
the individual employer's percentage of the system's total 11
actuarially accrued liability as of the June 30, 2019, actuarial 12
valuation which shall be determined solely by the system's 13
consulting actuary and assigned to each employer based upon the 14
last participating employer of the member or retiree as of June 30, 15
2019. The individual employer's percentage of the system's total 16
actuarially accrued liability as of the June 30, 2019, actuarial 17
valuation shall be used to determine the individual employer's 18
prorated dollar amount of the system's actuarially accrued liability 19
contribution in all future fiscal years of the amortization period or 20
periods, except that the employer's percentage shall be adjusted to 21
reflect any employer who voluntarily or involuntarily ceases 22
participation as provided by KRS 61.522 and except as provided 23
by subparagraphs 4. and 5. of this paragraph. For purposes of this 24
subdivision, all executive branch departments, program cabinets 25
and their respective departments, and administrative bodies 26
enumerated in KRS 12.020, and any other executive branch 27 UNOFFICIAL COPY 22 RS BR 9
Page 4 of 20
XXXX Jacketed
agencies administratively attached to a department, program 1
cabinet, or administrative body enumerated in KRS 12.020, shall 2
be considered a single individual employer and only one (1) value 3
shall be computed for these executive branch employers. For 4
purposes of this subdivision, all employers of the legislative 5
branch, including the Legislative Research Commission and the 6
General Assembly that covers legislators and staff who participate 7
in the Kentucky Employees Retirement System, shall be 8
considered a single individual employer and only one (1) value 9
shall be computed for these employers. For purposes of this 10
subdivision, all employers of the judicial branch, including the 11
Administrative Office of the Courts, the Judicial Form Retirement 12
System, and all master commissioners, shall be considered a single 13
individual employer and only one (1) value shall be computed for 14
these employers. Upon request by any nonhazardous employer 15
covered by this paragraph, the system shall provide the 16
requesting employer with any: 17
i. Demographic, financial, or actuarial data and information, 18
as determined by the employer, on any employee or retiree 19
that was assigned to the employer to determine the 20
individual employer's share of the system's total actuarially 21
accrued liability; and 22
ii. Actuarial methodology or calculations used to determine 23
the individual employer's share of the system's total 24
actuarially accrued liability, including but not limited to 25
identifying information, as determined by the employer, for 26
each assigned employee or retiree; demographic 27 UNOFFICIAL COPY 22 RS BR 9
Page 5 of 20
XXXX Jacketed
information or data, as determined by the employer, for 1
each assigned employee or retiree; financial information or 2
data, as determined by the employer, for each assigned 3
employee or retiree; and actuarial information or data as 4
determined by the employer for each assigned employee or 5
retiree; 6
c. Shall be payable by an individual employer in equal monthly dollar 7
installments during the fiscal year in accordance with the reporting 8
requirements specified by KRS 61.675 so that the individual 9
employer pays its full prorated dollar amount of the actuarially 10
accrued liability contribution as determined by subdivision b. of 11
this subparagraph; and 12
d. Notwithstanding subdivision b. of this subparagraph for those 13
individual participating employers who are local and district health 14
departments governed by KRS Chapter 212, community mental 15
health centers, and employers whose employees are not subject to 16
KRS 18A.005 to 18A.200, who received or were eligible to 17
receive a distribution of general fund appropriations in the 2018-18
2020 biennial executive branch budget to assist in paying 19
retirement costs under 2018 Ky. Acts ch. 169, Part I, G., 4., (5); 20
2018 Ky. Acts ch. 169, Part I, G., 5., (2); or 2018 Ky. Acts ch. 169, 21
Part I, G., 9., (2), shall not, once the initial dollar amounts are 22
established in accordance with this paragraph, be adjusted in terms 23
of dollars paid by the individual employer, except that adjustments 24
shall be made by the system upon completion of an actuarial 25
investigation as provided by KRS 61.670, so long as at least four 26
(4) years have passed since the last adjustment to the actuarially 27 UNOFFICIAL COPY 22 RS BR 9
Page 6 of 20
XXXX Jacketed
accrued liability contribution for these employers. The provisions 1
of this subdivision shall not be interpreted to mean that employers 2
described by this subdivision may continue paying the dollar value 3
of contributions or employer contribution rates established or paid 4
by the employer in budget periods occurring prior to July 1, 2021. 5
2. Individual employers, solely for purposes of collecting employer 6
contributions from various fund sources during the fiscal year, may 7
convert the actuarially accrued liability contribution established by this 8
paragraph to a percentage of pay and may adjust the percent of pay 9
during the fiscal year in order to pay the required dollar value of 10
actuarially accrued liability contribution required by this paragraph. No 11
provision of this subparagraph shall be construed to reduce an individual 12
employer's actuarially accrued liability contribution as otherwise 13
provided by this paragraph. 14
3. The provisions of this paragraph shall not apply to those employers who 15
cease participation as provided by KRS 61.522. 16
4. In the event an individual Kentucky Employees Retirement System 17
nonhazardous employer who is required to pay an actuarially accrued 18
liability contribution as provided by this paragraph and as calculated 19
from the 2019 actuarial valuation or subsequent valuations, merges with 20
another employer or entity, forms a new or separate employer or entity, 21
or splits or separates operations into multiple employers or entities, the 22
system shall, except for those employers or entities who pay the costs to 23
cease participation as provided by KRS 61.522, have full authority to 24
assign a portion or all of the total actuarially accrued liability 25
contribution to the merged, new, split, or separate employers or entities, 26
regardless of whether or not the merged, new, split, or separate 27 UNOFFICIAL COPY 22 RS BR 9
Page 7 of 20
XXXX Jacketed
employers or entities participate in the system. In the case of a district 1
health department established pursuant to KRS Chapter 212, which 2
ceases to operate or which has a county or counties that withdraw from 3
the district health department, the systems shall assign the total 4
actuarially accrued liability contribution based upon the proportion of 5
taxable property of each county as certified by the Department for Public 6
Health in the Cabinet for Health and Family Services in accordance with 7
KRS 212.132. The system shall establish by administrative regulations 8
the process of assigning actuarially accrued liability contributions as 9
authorized by this subparagraph. 10
5. a. An employer who is not in the executive, legislative, or judicial 11
branch of Kentucky state government as enumerated in 12
subparagraph 1.b. of this paragraph may on or before July 1, 2021, 13
appeal to the board regarding any current or former employees or 14
retirees the employer believes should not be used to determine the 15
employer's percentage of the system's total actuarially accrued 16
liability. The only appeals that shall be submitted by the employer 17
or considered by the board shall be potential errors where the last 18
participating employer is in dispute, situations where employees of 19
the employer were hired through a contract between the executive 20
branch and the employer for the employee to provide services to 21
the executive branch, or situations where a community mental 22
health center was contracted to provide services at a facility 23
previously operated by the executive branch. The employer shall 24
submit the information required by the board to verify potential 25
errors or contract employees with employers. 26
b. The board shall review and issue a final determination regarding 27 UNOFFICIAL COPY 22 RS BR 9
Page 8 of 20
XXXX Jacketed
any appeals by December 31, 2021. In situations where the board 1
determines the last participating employer was incorrect and 2
should be assigned to another employer, the system shall, effective 3
for employer contributions payable on or after July 1, 2022, assign 4
the cost to the executive branch until such time ownership of the 5
liability can be determined and assigned to the correct employer. In 6
situations where the board determines certain employees of 7
employers were hired through a contract between the executive 8
branch and the employer for an employee or employees to provide 9
services to the executive branch, those liabilities shall, effective for 10
employer contributions payable on or after July 1, 2022, be 11
assigned to the executive branch. In situations where the board 12
determines the community mental health center was contracted to 13
provide services at a facility previously operated by the executive 14
branch, the liabilities for employees providing services at that 15
facility shall be assigned to the executive branch. 16
c. No appeal shall be submitted by the employer or considered by the 17
board regarding the assumptions or methodology used by the 18
actuary to determine a particular employer's percentage of the 19
system's total actuarially accrued liability or the use of the last 20
participating employer to assign liabilities to an employer, except 21
as otherwise provided by this subparagraph. 22
d. The board shall within thirty (30) days following the final 23
determinations submit to the Public Pension Oversight Board the 24
list of appeals that were approved, the number of employees 25
involved, and any costs that will be transferred to the executive 26
branch effective July 1, 2022. 27 UNOFFICIAL COPY 22 RS BR 9
Page 9 of 20
XXXX Jacketed
6. a. An employer who is not in the executive, legislative, or judicial 1
branch of Kentucky state government as enumerated in 2
subparagraph 1.b. of this paragraph may, on or before August 1, 3
2022, appeal to the board regarding any current or former 4
employees or retirees the employer believes should not be used to 5
determine the employer's percentage of the system's total 6
actuarially accrued liability for which the employer did not 7
submit in accordance with subparagraph 5. of this paragraph or 8
for which the employer did submit in accordance with 9
subparagraph 5. of this paragraph but additional information is 10
available to be supplied by the employer. The only appeals that 11
shall be submitted by the employer or considered by the board 12
shall be potential errors where the last participating employer is 13
in dispute, situations where employees of the employer were 14
hired through a contract between the executive branch and the 15
employer for the employee to provide services to the executive 16
branch, or situations where a community mental health center 17
was contracted to provide services at a facility previously 18
operated by the executive branch. The employer shall submit the 19
information required by the board to verify potential errors or 20
contract employees with employers. 21
b. The board shall review and issue a final determination regarding 22
any appeals by December 31, 2022. In situations where the board 23
determines the last participating employer was incorrect and 24
should be assigned to another employer, the system shall, 25
effective for employer contributions payable on or after July 1, 26
2024, assign the cost to the executive branch until such time 27 UNOFFICIAL COPY 22 RS BR 9
Page 10 of 20
XXXX Jacketed
ownership of the liability can be determined and assigned to the 1
correct employer. In situations where the board determines 2
certain employees of employers were hired through a contract 3
between the executive branch and the employer for an employee 4
or employees to provide services to the executive branch, those 5
liabilities shall, effective for employer contributions payable on 6
or after July 1, 2024, be assigned to the executive branch. In 7
situations where the board determines the community mental 8
health center was contracted to provide services at a facility 9
previously operated by the executive branch, the liabilities for 10
employees providing services at that facility shall be assigned to 11
the executive branch for employer contributions payable on or 12
after July 1, 2024. 13
c. No appeal shall be submitted by the employer or considered by 14
the board regarding the assumptions or methodology used by the 15
actuary to determine a particular employer's percentage of the 16
system's total actuarially accrued liability or the use of the last 17
participating employer to assign liabilities to an employer, except 18
as otherwise provided by this subparagraph. 19
d. The board shall, within thirty (30) days following the final 20
determination, submit to the Public Pension Oversight Board the 21
list of appeals that were approved, the number of employees 22
involved, and any costs that will be transferred to the executive 23
branch effective July 1, 2024. 24
(e) The employer contributions computed under this section shall be determined 25
using: 26
1. The entry age normal cost funding method; 27 UNOFFICIAL COPY 22 RS BR 9
Page 11 of 20
XXXX Jacketed
2. An asset smoothing method that smooths investment gains and losses 1
over a five (5) year period; and 2
3. Other funding methods and assumptions established by the board in 3
accordance with KRS 61.670. 4
(2) (a) Except as limited by subsection (1)(d)1.d. of this section as it relates to the 5
Kentucky Employees Retirement System, normal cost contribution rates and 6
the actuarially accrued liability contribution shall be determined by the board 7
on the basis of the annual actuarial valuation last preceding the July 1 of a new 8
biennium. 9
(b) The board shall not have the authority to amend contribution rates as of July 1 10
of the second year of the biennium for the Kentucky Employees Retirement 11
System and the State Police Retirement System. 12
(3) The system shall advise each employer prior to July 1 of any change in the employer 13
contribution rate. Based on the employer contribution rate, each employer shall 14
include in the budget sufficient funds to pay the employer contributions as 15
determined by the board under this section. 16
(4) All employers, including the General Assembly, shall pay the full actuarially 17
required contributions, as prescribed by this section, to the Kentucky Employees 18
Retirement System and the State Police Retirement System in fiscal years occurring 19
on or after July 1, 2020. 20
Section 2. KRS 61.5991 is amended to read as follows: 21
Except as otherwise provided by this section, the following shall apply to nonhazardous 22
employers in the Kentucky Employees Retirement System, who contributed to the system 23
in fiscal year 2019-2020 except in the case of county attorneys, who are local and district 24
health departments governed by KRS Chapter 212, state-supported universities and 25
community colleges, county attorneys, mental health/mental retardation boards, domestic 26
violence shelters, rape crisis centers, child advocacy centers, or any other agency that is 27 UNOFFICIAL COPY 22 RS BR 9
Page 12 of 20
XXXX Jacketed
eligible to voluntarily cease participation in the Kentucky Employees Retirement System 1
as provided by KRS 61.522: 2
(1) (a) Each employer, except for county attorneys, shall report to the Authority for 3
each fiscal year occurring on or after July 1, 2021, the following persons for 4
which no employer contributions were paid by the employer to the system 5
during the fiscal year for services provided to the employer: 6
1. Except as provided by paragraph (b)3. of this subsection, persons 7
employed as an independent contractor, a leased employee, or via any 8
other employment arrangement as determined by the Authority, who if 9
employed directly by the employer would qualify as a regular full-time 10
employee in accordance with KRS 61.510(21); and 11
2. Persons employed directly by the employer who meet the definition of a 12
regular full-time employee in accordance with KRS 61.510(21), who are 13
not being reported to the system in accordance with KRS 61.675. 14
(b) The reporting required by this paragraph shall: 15
1. Be reported in a format, detail, and frequency as determined solely by 16
the Authority; 17
2. Except as provided by subparagraph 3. of this paragraph, include 18
persons providing services to the employer as an independent contractor, 19
a leased employee, or via any other employment arrangement as 20
determined by the Authority, and those services have historically been 21
provided or are currently being provided by employees eligible to 22
participate in the system through the employer; and 23
3. Exclude: 24
a. Contracts for professional services that have not historically been 25
provided by employees of the employer; and 26
b. Any contracts entered into prior to January 1, 2021, with a person 27 UNOFFICIAL COPY 22 RS BR 9
Page 13 of 20
XXXX Jacketed
or company to provide services as an independent contractor, a 1
leased employee, or other employment arrangement as determined 2
by the Authority and any subsequent contracts or contract 3
renewals for the same services[, but only for the duration of the 4
original contract, excluding any renewal periods, and only for 5
those services and persons included in the original contract]. 6
(c) In any case of doubt, the Authority shall determine whether data should be 7
reported on a specific person providing services to the employer and the 8
Authority may by promulgation of administrative regulation provide guidance 9
on which persons should be included for reporting purposes. 10
(d) If the Kentucky Public Pensions Authority determines a person who was not 11
reported to the system under this subsection should be reported to the system 12
as a regular full-time employee, the system shall require the employer covered 13
by this section to report the employee on or after July 1, 2021, and pay 14
employer contributions prospectively but shall not, notwithstanding any other 15
statute to the contrary, bill the employer for any contributions or penalties for 16
any service occurring prior to July 1, 2021, for that specific employee; 17
(2) (a) Notwithstanding any other provision of statute to the contrary, the Authority 18
shall have full power, including any authority under KRS 61.685, to audit an 19
employer who is subject to the provisions of this section to ensure compliance 20
and accuracy of the data required to be reported by the employer in accordance 21
with this section. 22
(b) If the Authority determines an employer has knowingly falsified data required 23
to be reported under this section: 24
1. The Authority shall indicate in the annual report submitted in 25
accordance with subsection (3) of this section that the employer has 26
knowingly falsified data and shall include a brief summary of the 27 UNOFFICIAL COPY 22 RS BR 9
Page 14 of 20
XXXX Jacketed
reasons for the Authority's determination; 1
2. The employer shall no longer be eligible to receive any future 2
appropriations or subsidies from the state to assist in paying employer 3
contributions to the system; and 4
3. The employer shall be required to pay back to the state any 5
appropriations or subsidies provided in the biennial executive branch 6
budget that were used to directly assist the employer in paying employer 7
contributions to the system on or after July 1, 2021. 8
(c) If an employer fails to submit the information required by this section or does 9
not comply with requests from the Authority regarding subsections (1) and (2) 10
of this section to verify or audit the employer's information: 11
1. The Authority shall indicate in the annual report submitted in 12
accordance with subsection (3) of this section that the employer is 13
noncompliant with the Authority's requests and shall include a brief 14
summary of the reasons for the Authority's determination; and 15
2. The employer may lose eligibility to receive any future appropriations or 16
subsidies from the state to assist in paying employer contributions to the 17
system; 18
(3) The Authority shall within sixty (60) days following the close of each fiscal year 19
occurring on or after July 1, 2021, determine and report the following to the state 20
budget director's office and the Legislative Research Commission for each employer 21
subject to this section, except for county attorneys: 22
(a) The number of regular full-time employees of the employer who were 23
reported to the system during the prior fiscal year for which contributions 24
were reported in accordance with KRS 61.675; 25
(b) The number of persons providing services to the employer under subsection 26
(1) of this section during the prior fiscal year who were not reported to the 27 UNOFFICIAL COPY 22 RS BR 9
Page 15 of 20
XXXX Jacketed
system and for which no contributions were reported; 1
(c) A percentage computed by dividing the number of employees reported in 2
paragraph (a) of this subsection by the combined sum of the number of 3
employees and persons reported in paragraphs (a) and (b) of this subsection 4
and multiplying by one hundred (100); and 5
(d) The information required by subsection (2) of this section for any employer 6
who has been determined by the Authority to have knowingly falsified data or 7
is noncompliant in submitting the data required by this section to the 8
Authority; 9
(4) It is the intent of the General Assembly in fiscal years occurring on or after July 1, 10
2021, to provide appropriations for county attorneys for retirement costs in the 11
Kentucky Employees Retirement System that is equal to the difference between the 12
dollar value of actual contributions paid by the employer in fiscal year 2019-2020 to 13
the system and the dollar value of contributions projected to be paid by the 14
employer to the system in fiscal year 2021-2022; 15
(5) For fiscal year 2021-2022, it is the intent of the General Assembly to provide a 16
subsidy towards the retirement costs of employers covered by this section, except 17
for county attorneys who are provided a subsidy by subsection (4) of this section, 18
that is equal to the difference between the dollar value of actual contributions paid 19
by the employer to the system in fiscal year 2019-2020 and the dollar value of 20
contributions projected to be paid by the employer to the system in fiscal year 2021-21
2022; 22
(6) It is the intent of the General Assembly that for fiscal years occurring on or after 23
July 1, 2022: 24
(a) To provide a subsidy towards the retirement costs of each employer subject to 25
this section, except for county attorneys who are provided a subsidy by 26
subsection (4) of this section, who has made efforts to increase or maintain the 27 UNOFFICIAL COPY 22 RS BR 9
Page 16 of 20
XXXX Jacketed
number of employees reported to the system. Specifically, it is the intent of 1
the General Assembly to provide subsidies only to those employers who have 2
a percentage of employees reported to the system as specified by subsection 3
(3)(c) of this section, equal to or greater than: 4
1. Sixty percent (60%) for any subsidies provided in fiscal years occurring 5
on or after July 1, 2022, to June 30, 2024; and 6
2. Eighty percent (80%) for any subsidies provided in fiscal years occurring 7
on or after July 1, 2024. 8
Eligibility for a subsidy provided in each fiscal year of the budget shall be 9
based upon the most recent percentage of employees reported by the 10
Authority; 11
(b) For those employers eligible for a subsidy under paragraph (a) of this 12
subsection, to provide a subsidy that is equal to the dollar value of the subsidy 13
provided to the employer in fiscal year 2021-2022 multiplied by the following 14
percentage: 15
1. For local and district health departments governed by KRS Chapter 212, 16
state-supported universities and community colleges, and any other 17
employer subject to this section that has taxing or fee authority: 18
a. Ninety percent (90%) in fiscal year 2022-2023; 19
b. Eighty percent (80%) in fiscal year 2023-2024; 20
c. Seventy percent (70%) in fiscal year 2024-2025; 21
d. Sixty percent (60%) in fiscal year 2025-2026; and 22
e. Fifty percent (50%) in fiscal years occurring on or after July 1, 23
2026; and 24
2. For any other employer who does not have taxing or fee authority: 25
a. Ninety percent (90%) in fiscal years 2022-2024; and 26
b. Seventy-five percent (75%) in fiscal years occurring on or after 27 UNOFFICIAL COPY 22 RS BR 9
Page 17 of 20
XXXX Jacketed
July 1, 2024; and 1
(c) The subsidy provided by this subsection shall be adjusted to reflect the 2
assignment of liabilities based upon the appeal process in KRS 3
61.565(1)(d)5.;. 4
(7) The Council on State Governments (CSG), the Kentucky Educational Television 5
(KET) Foundation, Association of Commonwealth's Attorneys, the Kentucky High 6
School Athletic Association (KHSAA), the Municipal Power Association of 7
Kentucky, the Kentucky Office of Bar Admissions, the Nursing Home Ombudsman, 8
the Kentucky Association of Regional Programs (KARP), and the Kentucky 9
Association of Sexual Assault Programs are, notwithstanding the provisions of 10
subsections (1) to (6) of this section, exempt from the reporting requirements and 11
from receiving a subsidy to assist in paying employer contribution rates; and 12
(8) The provisions of this section shall not obligate the General Assembly to provide 13
any specific level of subsidy to assist in paying employer contributions of any 14
employer covered by this section, and employers shall be responsible for any and all 15
future retirement contributions payable by the employer regardless of the actual 16
amount of subsidy included in future executive branch budgets. 17
Section 3. KRS 61.661 is amended to read as follows: 18
(1) (a) Each current, former, or retired member's account shall be administered in a 19
confidential manner, and specific data regarding a current, former, or retired 20
member shall not be released for publication, except that: 21
1. The member or recipient may authorize the release of his or her account 22
information; 23
2. Kentucky Retirement Systems may release account information to the 24
employer or to other state and federal agencies as it deems necessary or 25
in response to a lawful subpoena or order issued by a court of law, 26
except that Kentucky Retirement Systems shall be required to release 27 UNOFFICIAL COPY 22 RS BR 9
Page 18 of 20
XXXX Jacketed
account information to the employer as required by subsection 1
(1)(d)1.b. of Section 1 of this Act;; or 2
3. a. Upon request by any person, the systems shall release the 3
following information from the accounts of any member or retired 4
member of the Kentucky Employees Retirement System, the 5
County Employees Retirement System, or the State Police 6
Retirement System, if the member or retired member is a current 7
or former officeholder in the Kentucky General Assembly: 8
i. The first and last name of the member or retired member; 9
ii. The system or systems in which the member has an account 10
or from which the retired member is receiving a monthly 11
retirement allowance; 12
iii. The status of the member or retired member, including but 13
not limited to whether he or she is a contributing member, a 14
member who is not currently contributing to the systems but 15
has not retired, a retired member, or a retired member who 16
has returned to work following retirement with an agency 17
participating in the systems; 18
iv. If the individual is a retired member, the monthly retirement 19
allowance that he or she was receiving at the end of the most 20
recently completed fiscal year; 21
v. If the individual is a member who has not yet retired, the 22
estimated monthly retirement allowance that he or she is 23
eligible to receive at his or her normal retirement date based 24
upon his or her service credit, final compensation, and 25
accumulated account balance at the end of the most recently 26
completed fiscal year; and 27 UNOFFICIAL COPY 22 RS BR 9
Page 19 of 20
XXXX Jacketed
vi. The current employer or last participating employer of the 1
member or retired member, if applicable. 2
b. No information shall be disclosed under this subparagraph from an 3
account that is paying benefits to a beneficiary due to the death of 4
a member or retired member. 5
(b) A current, former, or retired member's account shall be exempt from the 6
provisions of KRS 171.410 to 171.990. 7
(c) The release of information under paragraph (a)3. of this subsection shall not 8
constitute a violation of the Open Records Act, KRS 61.870 to 61.884. 9
(2) (a) When a subpoena is served upon any employee of the Kentucky Retirement 10
Systems, requiring production of any specific data regarding a current, former, 11
or retired member, it is sufficient if the employee of the Kentucky Retirement 12
Systems charged with the responsibility of being custodian of the original 13
delivers within five (5) working days, by certified mail or by personal 14
delivery, legible and durable copies of records, certified by the employee, or 15
an affidavit stating the information required by the subpoena to the person 16
specified in the subpoena. The production of documents or an affidavit shall 17
be in lieu of any personal testimony of any employee of the Kentucky 18
Retirement Systems unless, after the production of documents or affidavit, a 19
separate subpoena is served upon the systems specifically directing the 20
testimony of an employee of the systems. When a subpoena is served on any 21
employee of the systems requiring the employee to give deposition for any 22
purpose, in the absence of a court order requiring the deposition of a specific 23
employee, the systems may designate an employee to be deposed upon the 24
matter referred to in the subpoena. 25
(b) The certification required by this subsection shall be signed before a notary 26
public by the employee and shall include the full name of the member or 27 UNOFFICIAL COPY 22 RS BR 9
Page 20 of 20
XXXX Jacketed
recipient, the member's or recipient's Social Security number, and a legend 1
substantially to the following effect: "The records are true and complete 2
reproductions of the original or microfiched records which are housed in the 3
retirement systems office. This certification is given in lieu of his or her 4
personal appearance." 5
(c) When an affidavit or copies of records are personally delivered, a receipt shall 6
be presented to the person receiving the records for his signature and shall be 7
immediately signed and returned to the person delivering the records. When 8
an affidavit or copies of records are sent via certified mail, the receipt used by 9
the postal authorities shall be sufficient to prove delivery and receipt of the 10
affidavit or copies of records. 11
(d) When the affidavit or copies of records are delivered to a party for use in 12
deposition, they shall, after termination of the deposition, be delivered 13
personally or by certified mail to the clerk of the court or other body before 14
which the action or proceeding is pending. It shall be the responsibility of the 15
party or attorney to transmit the receipt obtained to the employee of the 16
Kentucky Retirement Systems charged with responsibility of being custodian 17
of the original. Upon issuance of a final order terminating the case and after 18
the normal retention period for court records expires, the affidavit or copies of 19
records shall be permanently disposed of by the clerk in a manner that protects 20
the confidentiality of the information contained therein. 21
(e) Records of the Kentucky Retirement Systems that are susceptible to 22
photostatic reproduction may be proved as to foundation, identity, and 23
authenticity without any preliminary testimony, by use of legible and durable 24
copies, certified in accordance with the provisions of this subsection. 25