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AN ACT relating to the Judicial Form Retirement System. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 21.525 is amended to read as follows: 3
(1) The state, by appropriation to the Judicial Retirement Board, shall contribute 4
annually to the Judicial Retirement System an amount equal to the percent as 5
computed under subsection (2)(a) of this section of the creditable compensation of 6
active members of the Judicial Retirement System, to be known as the "normal cost 7
contribution[contributions]," and an additional amount computed under subsection 8
(2)(b) of this section,[equal to one percent (1%) of the unfunded past service 9
liabilities, plus annual interest accruing thereon at the actuarially assumed rate of 10
interest adopted by the board] to be known as the "actuarially accrued liability[past 11
service] contribution." 12
(2) (a) The normal cost contribution [rate] shall be determined using:[either by] 13
1. The entry age normal cost funding method; 14
2. An asset smoothing method that smooths investment gains and losses 15
over a five (5) year period; and 16
3. Other funding methods and assumptions established[ or the unit credit 17
actuarial method, as selected] by the board. 18
(b) The actuarially accrued liability contribution shall be computed as follows: 19
1. The total unfunded actuarially accrued liability shall be amoritized 20
over a closed period of twenty (20) years beginning with the 2023 21
actuarial valuation; 22
2. Any increase or decrease in the unfunded actuarially accrued liability 23
occurring after the completion of the 2023 actuarial valuation shall be 24
amortized over a closed period of twenty (20) years beginning with the 25
actuarial valuation in which the increase or decrease in the unfunded 26
actuarially accrued liability is recognized. An increase or decrease in 27 UNOFFICIAL COPY 22 RS BR 862
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the unfunded actuarially accrued liability may result from, but not be 1
limited to, legislative changes to benefits, changes in actuarial 2
methods or assumptions, or actuarial gains or losses; 3
3. If the annual valuation determines that the plan has surplus actuarial 4
assets, the prior amortization bases established under subparagraph 2. 5
of this paragraph shall be eliminated, and one (1) base equal to the 6
amount of surplus actuarial assets shall be established and amortized 7
over an open period of twenty (20) years; and 8
4. The actuarially accrued liability contribution[past service liability] 9
shall be determined by actuarial methods consistent with the methods 10
prescribed for determining the normal cost contribution, except that 11
beginning with the 2023 actuarial valuation the level dollar 12
amortization method shall be utilized[ rate]. 13
(c) The board shall adopt the actuarial assumptions that are to be used in making 14
the determinations. 15
(3) The normal cost contribution[contributions] and the actuarially accrued 16
liability[past service liability] contribution for each fiscal biennium shall be 17
determined on the basis of the actuarial valuation last preceding the commencement 18
of the biennium. 19
(4) Employer costs for the hybrid cash balance plan as provided by KRS 21.402 shall 20
be incorporated into the employer contribution rate of the Legislators' Retirement 21
Plan and the Judicial Retirement Plan as a new benefit tier within the plans. 22
Section 2. KRS 21.540 is amended to read as follows: 23
(1) (a) Except as provided in KRS 21.550, 21.560, and subsections (3) and (7) of this 24
section, the board of trustees of the Judicial Form Retirement System shall be 25
charged with the administration of KRS 6.500 to 6.577[that system] and[ of 26
KRS] 21.350 to 21.510. 27 UNOFFICIAL COPY 22 RS BR 862
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(b) The Judicial Form Retirement System[, and] shall have all powers necessary 1
to administer KRS 6.500 to 6.577 and 21.350 to 21.510[ thereto,] including 2
the power to promulgate all reasonable administrative regulations, pass upon 3
questions of eligibility and disability, make employments for services,[ and] to 4
contract for fiduciary liability insurance,[ and for] investment counseling, and 5
actuarial, auditing, and other professional services subject to the limitations of 6
KRS Chapters 45, 45A, 56, and 57. 7
(c) 1. The administrative expenses shall be paid out of an administrative 8
account which shall be funded by transfers of the necessary money, in 9
appropriate ratio, from the funds provided for in KRS 21.550 and 10
21.560. 11
2. Authorization for all administrative expenses relating to the 12
operations of the Judicial Form Retirement System shall be contained 13
in the biennial budget unit request, branch budget recommendations, 14
and the financial plan adopted by the General Assembly pursuant to 15
KRS Chapter 48. 16
3. The request from the Judicial Form Retirement System shall include 17
any specific administrative expenses requested by the board of trustees 18
that are not otherwise specified by this subsection. 19
(2) (a) A qualified domestic relations order issued by a court or administrative 20
agency shall be honored by the Judicial Form Retirement System if the order 21
is in compliance with the requirements established by the retirement system. 22
(b) Except in cases involving child support payments, the Judicial Form 23
Retirement System may charge reasonable and necessary fees and expenses to 24
the participant and the alternate payee of a qualified domestic relations order 25
for the administration of the qualified domestic relations order by the 26
retirement system. All fees and expenses shall be established by 27 UNOFFICIAL COPY 22 RS BR 862
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administrative regulations promulgated by the board of trustees of the 1
retirement system. The qualified domestic relations order shall specify 2
whether the fees and expenses provided by this subsection shall be paid: 3
1. Solely by the participant; 4
2. Solely by the alternate payee; or 5
3. Equally shared by the participant and alternate payee. 6
(c) For purposes of this subsection, a "qualified domestic relations order" shall 7
mean any judgment, decree, or order, including approval of a property 8
settlement agreement, that: 9
1. Is issued by a court or administrative agency; and 10
2. Relates to the provision of child support, alimony payments, or marital 11
property rights to a spouse, former spouse, child, or other dependent of a 12
member. 13
(3) Notwithstanding any other evidence of legislative intent, it is hereby declared to be 14
the controlling legislative intent that the provisions of KRS 21.345 to 21.580 and 15
6.500 to 6.577 shall conform with federal statutes or regulations and meet the 16
qualification requirements under 26 U.S.C. sec. 401(a), applicable federal 17
regulations, and other published guidance, and the board shall have the authority to 18
promulgate administrative regulations, with retroactive effect if required under 19
federal law, to conform the Legislators' Retirement Plan and the Judicial Retirement 20
Plan with federal statutes and regulations and to meet the qualification requirements 21
under 26 U.S.C. sec. 401(a). 22
(4) In order to improve public transparency regarding the administration of the 23
Legislators' Retirement Plan and the Judicial Retirement Plan, the board of trustees 24
of the Judicial Form Retirement System shall adopt a best-practices model by 25
posting the following information to the system's Web site and shall make it 26
available to the public: 27 UNOFFICIAL COPY 22 RS BR 862
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(a) Meeting notices and agendas for all meetings of the board. Notices and 1
agendas shall be posted to the system's Web site at least seventy-two (72) 2
hours in advance of the board or committee meetings, except in the case of 3
special or emergency meetings as provided by KRS 61.823; 4
(b) A list of the members of the board of trustees and membership on each 5
committee established by the board, including any investment committees; 6
(c) A list of system staff and each staff's salary; 7
(d) A list of the fund's professional consultants and their respective fees and 8
commissions paid by the system; 9
(e) A list of the system's expenditures; 10
(f) The annual financial audit of the system, which shall include but not be 11
limited to a statement of plan net assets, a statement of changes in plan net 12
assets, an actuarial value of assets, a schedule of investments, a statement of 13
funded status and funding progress, and other supporting data; 14
(g) All external audits; 15
(h) The annual actuarial valuation report of pension and retiree health benefits of 16
each retirement plan administered by the system, which shall include a general 17
statistical section and information on contributions, benefit payouts, and 18
retirement plan demographic data; 19
(i) All board minutes or other materials that require adoption or ratification by 20
the board of trustees or committees of the board. The items listed in this 21
paragraph shall be posted within seventy-two (72) hours of adoption or 22
ratification by the board or committees; 23
(j) All bylaws, policies, or procedures adopted or ratified by the board of trustees 24
or by committees of the board; 25
(k) The summary plan description for each plan administered by the system; 26
(l) A document or a link to documents containing an unofficial copy of the 27 UNOFFICIAL COPY 22 RS BR 862
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statutes governing the plans administered by the Judicial Form Retirement 1
System; 2
(m) Investment information, including all investment holdings in aggregate, fees, 3
and commissions for each fund administered by the board, which shall be 4
updated on a quarterly basis for fiscal years beginning on or after July 1, 2017. 5
The system shall request from all managers, partnerships, and any other 6
available sources all information regarding fees and commissions and shall, 7
based on the requested information received: 8
1. Disclose the dollar value of fees and commissions paid to each 9
individual manager or partnership; 10
2. Disclose the dollar value of any profit sharing, carried interest, or any 11
other partnership incentive arrangements, partnership agreements, or any 12
other partnership expenses received by or paid to each manager or 13
partnership; and 14
3. As applicable, report each fee or commission by manager or partnership 15
consistent with standards established by the Institutional Limited 16
Partners Association (ILPA). 17
In addition to the requirements of this paragraph, the system shall also 18
disclose the name and address of all individual underlying managers or 19
partners in any fund of funds in which system assets are invested; 20
(n) An update of net investment returns, asset allocations, and the performance of 21
the funds against benchmarks adopted by the board for each fund, for each 22
asset class administered by the board, and for each manager over a historical 23
period. The update shall be posted on a quarterly basis for fiscal years 24
beginning on or after July 1, 2017; 25
(o) All contracts or offering documents for services, goods, or property purchased 26
or utilized by the system. Notwithstanding KRS 61.878, all contracts, 27 UNOFFICIAL COPY 22 RS BR 862
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including investment contracts, shall be subject to review by the board, the 1
Auditor of Public Accounts, and the Government Contract Review Committee 2
established pursuant to KRS 45A.705. If any public record contains material 3
which is not excepted under KRS 61.878, the system shall separate the 4
excepted material by removal, segregation, or redaction, and make the 5
nonexcepted material available for examination; and 6
(p) Information regarding the system's financial and actuarial condition that is 7
easily understood by the members, retired members, and the public. 8
Nothing in this subsection shall require or compel the Judicial Form Retirement 9
System to disclose information specific to the account of an individual member of 10
the Legislators' Retirement Plan or the Judicial Retirement Plan. 11
(5) No trustee or employee of the board shall: 12
(a) Have any interest, direct or indirect, in the gains or profits of any investment 13
or transaction made by the board, provided that the provisions of this 14
paragraph shall not prohibit a member or retiree of one (1) of the retirement 15
plans administered by the system from serving as a trustee; 16
(b) Directly or indirectly, for himself or herself or as an agent, use the assets of 17
the system, except to make current and necessary payments authorized by the 18
board; 19
(c) Become an endorser, surety, or obligor for moneys loaned by or borrowed 20
from the board; 21
(d) Have a contract or agreement with the retirement system, individually or 22
through a business owned by the trustee or the employee; 23
(e) Use his or her official position with the retirement system to obtain a financial 24
gain or benefit or advantage for himself or herself or a family member; 25
(f) Use confidential information acquired during his or her tenure with the 26
systems to further his or her own economic interests or that of another person; 27 UNOFFICIAL COPY 22 RS BR 862
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or 1
(g) Hold outside employment with, or accept compensation from, any person or 2
business with which he or she has involvement as part of his or her official 3
position with the system. The provisions of this paragraph shall not prohibit: 4
1. A trustee from serving as a judge or member of the General Assembly; 5
or 6
2. A trustee from serving on the board if the compensation is de minimus 7
and incidental to the trustee's outside employment. If the compensation 8
is more than de minimus, the trustee shall disclose the amount of the 9
compensation to the other trustees and recuse himself or herself from 10
any matters involving hiring or retaining a person or a business from 11
whom more than de minimus amounts are received by the trustee. For 12
purposes of this section, "de minimus" means an insignificant amount 13
that does not raise a reasonable question as to the trustee's objectivity. 14
(6) Notwithstanding any other provision of KRS 6.500 to 6.577 and 21.345 to 21.580 to 15
the contrary, no funds of the Legislators' Retirement Plan or the Judicial Retirement 16
Plan, including fees and commissions paid to an investment manager, private fund, 17
or company issuing securities, who manages systems assets, shall be used to pay 18
fees and commissions to placement agents. For purposes of this subsection, 19
"placement agent" means a third-party individual, who is not an employee, or firm, 20
wholly or partially owned by the entity being hired, who solicits investments on 21
behalf of an investment manager, private fund, or company issuing securities. 22
(7) All contracts for the investment or management of assets of the system shall not be 23
subject to KRS Chapters 45, 45A, 56, and 57. Instead, the board shall conduct the 24
following process to develop and adopt an investment procurement policy with 25
which all prospective contracts for the investment or management of assets of the 26
system shall comply: 27 UNOFFICIAL COPY 22 RS BR 862
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(a) On or before July 1, 2017, the board shall consult with the secretary of the 1
Finance and Administration Cabinet or his or her designee to develop an 2
investment procurement policy, which shall be written to meet best practices 3
in investment management procurement; 4
(b) Thirty (30) days prior to adoption, the board shall tender the preliminary 5
investment procurement policy to the secretary of the Finance and 6
Administration Cabinet or his or her designee for review and comment; 7
(c) Upon receipt of comments from the secretary of the Finance and 8
Administration Cabinet or his or her designee, the board shall choose to adopt 9
or not adopt any recommended changes; 10
(d) Upon adoption, the board shall tender the final investment procurement policy 11
to the secretary of the Finance and Administration Cabinet or his or her 12
designee; 13
(e) No later than thirty (30) days after receipt of the investment procurement 14
policy, the secretary or his or her designee shall certify whether the board's 15
investment procurement policy meets or does not meet best practices for 16
investment management procurement; and 17
(f) Any amendments to the investment procurement policy shall adhere to the 18
requirements set forth by paragraphs (b) to (e) of this subsection. 19
(8) (a) 1. Upon request by any person, the Judicial Form Retirement System shall 20
release the following information from the accounts of any member or 21
retiree of the Legislators' Retirement Plan or the Judicial Retirement 22
Plan, if the member or retiree is a current or former officeholder in the 23
Kentucky General Assembly: 24
a. The first and last name of the member or retiree; 25
b. The plan or plans in which the member has an account or from 26
which the retiree is receiving a monthly retirement allowance; 27 UNOFFICIAL COPY 22 RS BR 862
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c. The status of the member or retiree, including but not limited to 1
whether he or she is a contributing to the plans but has not retired, 2
or a retiree drawing a monthly retirement allowance; 3
d. If the individual is a retiree, the monthly retirement allowance that 4
he or she was receiving at the end of the most recently completed 5
fiscal year; and 6
e. If the individual is a member who has not yet retired, the estimated 7
monthly retirement allowance that he or she is eligible to receive 8
on the first date he or she would be eligible for an unreduced 9
retirement allowance, using his or her service credit, final 10
compensation, and accumulated account balance at the end of the 11
most recently completed fiscal year. 12
2. No information shall be disclosed under this paragraph from an account 13
that is paying benefits to a beneficiary due to the death of a member or 14
retiree. 15
(b) The release of information under paragraph (a) of this subsection shall not 16
constitute a violation of the Open Records Act, KRS 61.870 to 61.884. 17
Section 3. KRS 6.505 is repealed, reenacted, and amended to read as follows: 18
(1) (a) Each legislator in office on July 1, 1980, may within thirty (30) days after that 19
date, and any legislator thereafter taking office may within thirty (30) days 20
after the date thereof, elect to make monthly contributions to the Legislators' 21
Retirement Plan, in an amount equal to five percent (5%) of his or her 22
monthly creditable compensation, as defined in KRS 61.510(13)[, or the 23
amount specified by paragraph (d) of this subsection]. The election shall be 24
effective to establish membership in the plan as of July 1, 1980, or as of the 25
date from which the thirty (30) day period is measured, as the case may be. 26
Provided, however, that any legislator who was in office on July 1, 1980, and 27 UNOFFICIAL COPY 22 RS BR 862
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who is in office at the time he or she makes the election may, after the 1
expiration of the thirty (30) day period and until May 1, 1982, make the 2
election, in which event he or she shall pay to the Legislators' Retirement 3
Plan, for the months between July 1, 1980, and the date of his or her election 4
such sum as, when added to any member's contribution by him or her that is 5
transferred from another retirement system under KRS 6.535, will equal the 6
member's contribution required by this section. If the member makes his or 7
her election after February 1, 1981, he or she shall in addition pay to the plan 8
interest on the foregoing sum, at six percent (6%) per annum, calculated as if 9
the sum consisted of equal monthly payments, one (1) of which was due at the 10
end of each month between July 1, 1980, and the date the election was made. 11
The election shall be addressed to and filed with the secretary of the Finance 12
and Administration Cabinet and shall constitute an authorization to the 13
secretary to thereafter cause to be deducted from the member's monthly 14
creditable compensation an amount equal to five percent (5%) thereof, as a 15
voluntarily elected contribution by the member towards the funding of the 16
Legislators' Retirement Plan. 17
(b) 1. For a member who begins participating in the Legislators' Retirement 18
Plan prior to January 1, 2014, the election shall operate to create an 19
inviolable contract between such member and the Commonwealth, 20
guaranteeing to and vesting in the member the rights and benefits 21
provided for under KRS 6.515 to 6.530[, except that the General 22
Assembly reserves the right to amend, reduce, or suspend any legislative 23
changes to the provisions of KRS 6.500 to 6.577 that become effective 24
on or after July 1, 2018]. 25
2. a. For members who begin participating in the Legislators' 26
Retirement Plan on or after January 1, 2014, the General Assembly 27 UNOFFICIAL COPY 22 RS BR 862
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reserves the right to amend, suspend, or reduce the benefits and 1
rights provided under KRS 6.500 to 6.577 if, in its judgment, the 2
welfare of the Commonwealth so demands, except that the amount 3
of benefits the member has accrued at the time of amendment, 4
suspension, or reduction shall not be affected. 5
b. For purposes of this subparagraph, the amount of benefits the 6
member has accrued at the time of amendment, suspension, or 7
reduction shall be limited to the accumulated account balance the 8
member has accrued at the time of amendment, suspension, or 9
reduction. 10
c. The provisions of this subsection shall not be construed to limit the 11
General Assembly's authority to change any other benefit or right 12
specified by KRS 6.500 to 6.577, for members who begin 13
participating in the Legislators' Retirement Plan on or after January 14
1, 2014, except the benefits specified by subparagraph 2.b. of this 15
paragraph. 16
3. The provisions of this paragraph shall not be construed to limit the 17
General Assembly's authority to amend, reduce, or suspend the benefits 18
and rights of members of the Legislators' Retirement Plan as provided by 19
KRS 6.500 to 6.577 that the General Assembly had the authority to 20
amend, reduce, or suspend, prior to July 1, 2013. 21
(c) An election once made under this section either to participate or not to 22
participate in the Legislators' Retirement Plan, shall be considered to apply to 23
all future service as a legislator[ except as provided by KRS 21.374 or 24
21.385(3)], whether in the same or a different office as a legislator, and 25
whether or not it is in successive terms. 26
(d) Notwithstanding the provisions of this subsection: 27 UNOFFICIAL COPY 22 RS BR 862
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1. A legislator who becomes a member of the Legislators' Retirement Plan 1
on or after September 1, 2008, but prior to January 1, 2014, shall make 2
monthly contributions to the Legislators' Retirement Plan in an amount 3
equal to six percent (6%) of his or her monthly creditable compensation, 4
as defined in KRS 61.510(13); 5
2. A legislator who becomes a member of the Legislators' Retirement Plan 6
on or after January 1, 2014, shall make monthly contributions to the 7
Legislators' Retirement Plan in an amount equal to six percent (6%) of 8
his or her monthly creditable compensation, as defined in KRS 9
61.510(13), of which: 10
a. Five percent (5%) of his or her monthly creditable compensation, 11
as defined in KRS 61.510(13), shall be used to provide funding for 12
benefits provided under KRS 21.402; and 13
b. One percent (1%) of his or her monthly creditable compensation, 14
as defined in KRS 61.510(13), shall be used exclusively to help 15
fund retiree health benefits as provided by KRS 6.577 and shall not 16
be refunded to the member if the member withdraws his or her 17
accumulated account balance as provided by KRS 21.460. The 18
amounts deducted under this subdivision shall be credited to an 19
account established pursuant to 26 U.S.C. sec. 401(h), within the 20
fund established by KRS 6.530. 21
(2) A legislator entitled to elect membership in the retirement system who failed to 22
elect membership within thirty (30) days after taking office may elect membership 23
not later than August 31, 2005. An election, upon being made pursuant to this 24
section, shall operate to create an inviolable contract between the member entitled 25
to elect membership under this subsection and the Commonwealth, guaranteeing to 26
and vesting in the member the rights and benefits provided for under the terms and 27 UNOFFICIAL COPY 22 RS BR 862
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conditions of KRS 6.500 to 6.577[, except that the General Assembly reserves the 1
right to amend, reduce, or suspend any legislative changes to the provisions of KRS 2
6.500 to 6.577 that become effective on or after July 1, 2018]. 3
(3) When any legislator makes a delayed election of membership in the Legislators' 4
Retirement Plan under subsection (2) of this section, his or her active membership 5
in the Kentucky Employees Retirement System shall terminate, as of the date his or 6
her membership in the Legislators' Retirement Plan becomes effective, and any 7
credit in the Kentucky Employees Retirement System, earned for service as a 8
legislator, which he or she then has or which he or she subsequently regains while 9
being an active member of the Legislators' Retirement Plan, shall be transferred to 10
and counted as service credit in the Legislators' Retirement Plan, and shall no longer 11
constitute credit in the Kentucky Employees Retirement System, except for the 12
purpose of validating any other credit in that system if the member pays the 13
difference, if any, between the amount transferred from the Kentucky Employees 14
Retirement System and the actuarial value of the transferred service. However, any 15
credit he or she then has in the Kentucky Employees Retirement System, earned for 16
service in any capacity other than a legislator, shall not be affected. No person may 17
attain credit in more than one (1) of the retirement plans or systems mentioned in 18
this section for the same period of service. When credit is transferred from the 19
Kentucky Employees Retirement System to the Legislators' Retirement Plan, the 20
Kentucky Employees Retirement System shall transfer to the Legislators' 21
Retirement Fund an amount equal to the employee's and employer's contributions 22
attributable to that credit, together with interest on the contributions from the date 23
made to the date of transfer at the actuarially assumed interest rate of the Kentucky 24
Employees Retirement System in effect at the time the contributions were made, 25
compounded annually at that same interest rate. 26
(4) The state shall, solely for the purpose of compliance with Section 414(h) of the 27 UNOFFICIAL COPY 22 RS BR 862
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United States Internal Revenue Code, pick up the employee contributions required 1
by this section for all compensation earned after August 1, 1982, and the 2
contributions so picked up shall be treated as employer contributions in determining 3
tax treatment under the United States Internal Revenue Code and KRS 141.010. The 4
picked-up employee contribution shall satisfy all obligations to the retirement 5
system satisfied prior to August 1, 1982, by the employee contribution, and the 6
picked-up employee contribution shall be in lieu of an employee contribution. The 7
state shall pay these picked-up employee contributions from the same source of 8
funds which is used to pay earnings to the employee. The employee shall have no 9
option to receive the contributed amounts directly instead of having them paid by 10
the employer to the system. Employee contributions picked up after August 1, 1982, 11
shall be treated for all purposes of KRS 6.500 to 6.535 in the same manner and to 12
the same extent as employee contributions made prior to August 1, 1982. 13
(5) When any legislator elects membership in the Legislators' Retirement Plan in 14
accordance with this section, his or her active membership in the Kentucky 15
Employees Retirement System, State Police Retirement System, County Employees 16
Retirement System, or Teachers' Retirement System shall terminate, as of the date 17
his or her membership in the Legislators' Retirement Plan becomes effective, and 18
any credit in such other system or systems, earned for service as a legislator, which 19
he or she then has or which he or she subsequently regains while being an active 20
member of the Legislators' Retirement Plan, shall be transferred to and counted as 21
service credit in the Legislators' Retirement Plan, and shall no longer constitute 22
credit in such other retirement system except for the purpose of validating any other 23
credit in that system. However, any credit he or she then has in such other 24
retirement system, earned for service in any capacity other than a legislator, shall 25
not be affected. No person may attain credit in more than one (1) of the retirement 26
plans or systems mentioned in this section, for the same period of service. 27 UNOFFICIAL COPY 22 RS BR 862
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(6) A member of the Legislators' Retirement Plan who would be entitled, under KRS 1
61.552, to repurchase credit in the Kentucky Employees Retirement System, for 2
previous service as a legislator, which credit had been lost by refund of 3
contributions, may pay the amount required by KRS 61.552 directly to the 4
Legislators' Retirement Plan and thereby obtain credit in that plan for such service, 5
rather than making payment to the Kentucky Employees Retirement System for 6
credit which would be transferred to the Legislators' Retirement Plan. In such event, 7
the Kentucky Employees Retirement System shall transfer to the Legislators' 8
Retirement Plan an amount equal to the employer's contributions that originally 9
were made to the Kentucky Employees Retirement System for the regained service 10
credit, with interest as provided in KRS 6.535. Six (6) months' current service shall 11
be required in the Legislators' Retirement Plan in order for the repurchased credit to 12
remain in force, the same as provided in KRS 61.552. Service purchased under this 13
subsection on or after January 1, 2014, shall not be used to determine the member's 14
participation date in the Legislators' Retirement Plan. 15
Section 4. KRS 6.518 is repealed, reenacted, and amended to read as follows: 16
(1) For purposes of this section, "bona fide promotion or career advancement": 17
(a) Means a professional advancement in substantially the same line of work held 18
by the member in the four (4) years immediately prior to the final five (5) 19
annual years preceding retirement or a change in employment position based 20
on the training, skills, education, or expertise of the member that imposes a 21
significant change in job duties and responsibilities to clearly justify the 22
increased compensation to the member; and 23
(b) Does not include any circumstance in which a legislator participating in the 24
Legislators' Retirement Plan takes a position of employment with an employer 25
participating in any of the other state-administered retirement systems. 26
(2) (a) For members retiring on or after January 1, 2018, the plan shall, for each of 27 UNOFFICIAL COPY 22 RS BR 862
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the retiring member's last five (5) annual years of service in the General 1
Assembly or with any employer participating in any of the state-administered 2
retirement systems, identify any annual year in which the creditable 3
compensation used to calculate benefits in the Legislators' Retirement Plan 4
increased at a rate of ten percent (10%) or more annually over the immediately 5
preceding annual year's creditable compensation. 6
(b) Except as limited or excluded by subsections (3) and (4) of this section, any 7
amount of increase in creditable compensation for an annual year identified 8
under paragraph (a) of this subsection that exceeds ten percent (10%) more 9
than the member's creditable compensation from the immediately preceding 10
annual year shall not be included in the creditable compensation used to 11
calculate the member's monthly pension benefits. If the creditable 12
compensation for a specific annual year identified under paragraph (a) of this 13
subsection as exceeding the ten percent (10%) increase limitation is not used 14
to calculate the retiring member's monthly pension benefits, then no reduction 15
in creditable compensation shall occur for that annual year. Reductions to 16
creditable compensation as provided by this paragraph shall include any 17
creditable compensation used to calculate the retiring member's benefits, 18
including creditable compensation earned in another state-administered 19
retirement system. 20
(c) If the creditable compensation of the retiring member is reduced as provided 21
by paragraph (b) of this subsection, the retirement system shall, 22
notwithstanding KRS 21.460 and as applicable, refund the member 23
contributions attributable to the reduction in creditable compensation. 24
(3) In order to ensure the prospective application of the limitations on increases in 25
creditable compensation contained in subsection (2) of this section, only the 26
creditable compensation earned by the retiring member on or after July 1, 2017, 27 UNOFFICIAL COPY 22 RS BR 862
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shall be subject to reduction under subsection (2) of this section. Creditable 1
compensation earned by the retiring member prior to July 1, 2017, shall not be 2
subject to reduction under subsection (2) of this section. 3
(4) Subsections (2) and (3) of this section shall not apply to increases that are the direct 4
result of a bona fide promotion or career advancement. 5
(5) The Judicial Form Retirement System board of trustees shall determine whether 6
increases in creditable compensation during the last five (5) annual years of 7
employment prior to retirement constitute a bona fide promotion or career 8
advancement and may promulgate administrative regulations in accordance with 9
KRS Chapter 13A to administer this section. All state-administered retirement 10
systems shall cooperate to implement this section. 11
(6) This section shall not apply to [: 12
(a) ]employees participating in the hybrid cash balance plan[plans] as provided 13
by KRS 21.402[ or 61.597; or 14
(b) Service earned in the 401(a) money purchase plan as provided by KRS 15
61.5956]. 16
Section 5. KRS 6.520 is repealed, reenacted, and amended to read as follows: 17
(1) A member of the Legislators' Retirement Plan who retires on or after his or her 18
normal retirement date shall receive a service retirement allowance, payable 19
monthly during his or her lifetime, in an amount per month equal to three and fifty 20
one-hundredths percent (3.50%) of his or her final compensation multiplied by the 21
number of years of his or her service, but in no event to exceed one hundred percent 22
(100%) of final compensation. For this purpose, "final compensation" means the 23
average monthly creditable compensation as determined in KRS 61.510(13) of the 24
member for services as a legislator for the three (3) years during which the member 25
had the highest creditable legislative compensation. 26
(2) A member shall have rights, with respect to retirement before reaching normal 27 UNOFFICIAL COPY 22 RS BR 862
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retirement date in the Legislators' Retirement Plan, identical in terms with those 1
rights provided in KRS 21.400(2) and (3) in the Judicial Retirement Plan for 2
members of that plan, except that the reduction in a legislators' service retirement 3
allowance for early retirement shall be at the rate of five percent (5%) of the 4
allowance for each year that retirement precedes the normal retirement date. 5
(3) Subsections (1) and (2) of this section to the contrary notwithstanding, each 6
legislator in office on July 1, 1982, that is a member of the Legislators' Retirement 7
Plan, who retires on or after his or her normal retirement date, shall receive a 8
service retirement allowance, payable monthly, on a formula equal to that of a 9
justice or judge of the Court of Justice with an equivalent service entrance date, but 10
in no event less than that specified in subsection (1) of this section, of his or her 11
final compensation multiplied by the number of years of his or her service, but in 12
no event to exceed one hundred percent (100%) of[ his] final compensation. For 13
this purpose, "final compensation" means the average monthly creditable 14
compensation as determined in KRS 61.510(13) of the three (3) years during which 15
the member had the highest creditable legislative compensation. 16
(4) Subsections (1) and (2) of this section[Notwithstanding any other provision of 17
KRS 6.500 to 6.577 or 21.345 to 21.580] to the contrary notwithstanding, a 18
member of the Legislators' Retirement Plan with a service entrance date after July 1, 19
1982 but prior to January 1, 2014, who retires on or after his or her normal 20
retirement date, shall receive a service retirement allowance, payable monthly 21
during his or her lifetime, in an amount per month equal to [: 22
(a) ]two and seventy-five one-hundredths percent (2.75%) of his or her final 23
compensation multiplied by the number of years of his or her service, but [ accrued 24
prior to January 1, 2019; and 25
(b) One and ninety-seven one-hundredths percent (1.97%) of his or her final 26
compensation multiplied by the number of years of his or her service accrued on or 27 UNOFFICIAL COPY 22 RS BR 862
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after January 1, 2019. 1
]in no event to[shall the benefit provided by this subsection] exceed one hundred 2
percent (100%) of final compensation. For this purpose, "final compensation" 3
means the average monthly creditable compensation as determined in KRS 4
61.510(13) of the member for services as a legislator for the three (3) years during 5
which the member had the highest creditable legislative compensation. 6
(5) Subsections (1) to (4) of this section shall not apply to members who begin 7
participating in the Legislators' Retirement Plan on or after January 1, 2014. 8
Section 6. KRS 6.525 is repealed, reenacted, and amended to read as follows: 9
The Legislators' Retirement Plan shall be governed by KRS 21.560 and by provisions 10
identical in terms with those provided in KRS 21.345(1), 21.345(3) to (6), 21.357, 11
21.360(1), 21.370 to 21.410, 21.374, 21.420, 21.425, 21.450, 21.460, 21.470, 21.480, 12
21.525, 21.540, and 61.552 for the Judicial Retirement Plan, except that: 13
(1) Five (5) years of service as a legislator will be sufficient for vesting; and 14
(2) (a) A member of the Legislators' Retirement Plan may combine his or her service 15
credit with his or her service credit in the Teachers' Retirement System, 16
Kentucky Employees Retirement System, County Employees Retirement 17
System, and State Police Retirement System at the time of his or her 18
retirement, according to the procedure of KRS 61.680(2)(a), except that the 19
salary used to determine final compensation, if applicable, shall be based on 20
the creditable compensation in KRS 61.510(13) for service while a member of 21
the General Assembly whether or not a member of the Legislators' Retirement 22
Plan. 23
(b) [1. ]For members contributing on or after June 20, 2005 but prior to January 24
1, 2014[, who have service credit in the State Police Retirement System, 25
Kentucky Employees Retirement System, County Employees Retirement 26
System, or Teachers' Retirement System prior to January 1, 2019]: Upon 27 UNOFFICIAL COPY 22 RS BR 862
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retirement, a member's accounts under the Legislators' Retirement Plan, State 1
Police Retirement System, Kentucky Employees Retirement System, County 2
Employees Retirement System, and Teachers' Retirement System shall be 3
consolidated for the purpose of determining eligibility and amount of benefits 4
as provided in KRS 61.680(2)(a) and in the same manner as for the other 5
retirement systems using the highest salary regardless of the system in which 6
it was earned. [, except that any salary earned in the State Police Retirement 7
System, Kentucky Employees Retirement System, County Employees 8
Retirement System, or Kentucky Teachers' Retirement System on or after 9
January 1, 2019, shall not be used to determine benefits in the Legislators' 10
Retirement Plan. 11
2. The consolidation of accounts as provided by this paragraph shall not apply to 12
accounts in the State Police Retirement System, the Kentucky Employees 13
Retirement System, the County Employees Retirement System, and the 14
Teachers' Retirement System, from which the member is receiving a 15
retirement benefit. 16
3. ]For purposes of this paragraph, "retirement" means the month in which the 17
member elects to begin receiving benefits or benefits become payable due to 18
the member's death. 19
(c) A member who has an account in the Legislators' Retirement Plan and the 20
Judicial Retirement Plan may combine his or her service in both plans for 21
purposes of determining: 22
1. Eligibility and the amount of benefits; and 23
2. Final compensation, provided the member began participating in the 24
Legislators' Retirement Plan prior to January 1, 2014[, and except that 25
any salary earned in the Judicial Retirement Plan on or after January 1, 26
2019, shall not be used to determine final compensation in the 27 UNOFFICIAL COPY 22 RS BR 862
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Legislators' Retirement Plan]. 1
(d) A member who began participating in the Legislators' Retirement Plan prior to 2
January 1, 2014, may retire at the completion of twenty-seven (27) or more 3
years of combined service credit, so long as at least fifteen (15) years of such 4
credit were earned after January 1, 1960, and there shall be no reduction in the 5
retirement allowance because of retirement before the age of sixty-five (65). 6
(e) For the purposes of this section, any reference in the KRS sections listed 7
above to the Judicial Retirement Plan shall also be read as a reference to the 8
Legislators' Retirement Plan, and any reference to the Legislators' Retirement 9
Plan shall also be read as a reference to the Judicial Retirement Plan. 10
(3) Any other statute to the contrary notwithstanding, a member of any state-11
administered retirement system who has ceased to qualify for membership but 12
subsequently returns to a qualified status, shall, for the purposes of determining the 13
date of entry into the state-administered retirement system for the subsequent period 14
or periods of service, be deemed to have never left the retirement system. 15
Section 7. KRS 21.360 is repealed, reenacted, and amended to read as follows: 16
(1) (a) Each Judge of the District Court in office on July 1, 1978, may within thirty 17
(30) days after that date, and any judge or justice of any court entitled to be a 18
member thereafter taking office may within thirty (30) days after taking office, 19
elect to make monthly contributions to the retirement system in an amount 20
equal to: 21
1. Five percent (5%) of his or her monthly official salary, if the judge or 22
justice became a member of the Kentucky Judicial Retirement Plan prior 23
to September 1, 2008; 24
2. Six percent (6%) of his or her monthly official salary, if the judge or 25
justice became a member of the Kentucky Judicial Retirement Plan on 26
or after September 1, 2008, but prior to January 1, 2014; or 27 UNOFFICIAL COPY 22 RS BR 862
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3. Six percent (6%) of his or her monthly official salary, if the judge or 1
justice who becomes a member of the Kentucky Judicial Retirement 2
Plan on or after January 1, 2014, which shall be used to fund benefits as 3
follows: 4
a. Five percent (5%) of the monthly official salary shall be used to 5
provide funding for benefits provided under KRS 21.402; and 6
b. One percent (1%) of the monthly official salary to be used 7
exclusively to help fund retiree health benefits as provided by KRS 8
21.427 and which shall not be refunded to the member if the 9
member withdraws his or her accumulated account balance as 10
provided by KRS 21.460. The deducted amounts under this 11
subdivision shall be credited to an account established pursuant to 12
26 U.S.C. sec. 401(h), within the fund established by KRS 21.347. 13
(b) The election shall be effective to establish membership in the system as of 14
July 1, 1978, or as of the date the judge or justice took office, as the case may 15
be. The election shall be addressed to and filed with the secretary of the 16
Finance and Administration Cabinet, and shall constitute an authorization by 17
the member, to the secretary, to thereafter cause to be deducted from the 18
member's official salary, each month, the amount required by paragraph (a) of 19
this subsection, as a voluntary contribution by the member towards the 20
funding of the retirement system. For a member who began contributing to the 21
Judicial Retirement Plan prior to January 1, 2014, the contribution shall 22
continue until the judge or justice is vested in a service retirement allowance 23
equal to one hundred percent (100%) of final compensation. Thereafter 24
employee contributions shall be discontinued but continued service and 25
retirement benefits shall not be affected thereby. 26
(2) A judge or justice entitled to elect membership in the retirement system who failed 27 UNOFFICIAL COPY 22 RS BR 862
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to elect membership within thirty (30) days after taking office in 1980 or who 1
elected membership in the Kentucky Employees Retirement System may elect 2
membership not later than August 31, 2005. An election, upon being made pursuant 3
to this section, shall operate to create an inviolable contract between the member 4
entitled to elect membership under this subsection and the Commonwealth, 5
guaranteeing to and vesting in the member the rights and benefits provided for 6
under the terms and conditions of KRS 21.350 to 21.510[, except that the General 7
Assembly reserves the right to amend, reduce, or suspend any legislative changes to 8
the provisions of KRS 21.345 to 21.580 that become effective on or after July 1, 9
2018]. 10
(3) (a) When any judge makes a delayed election of membership in the Judicial 11
Retirement Plan under subsection (2) of this section, his or her active 12
membership in the Kentucky Employees Retirement System shall terminate, 13
as of the date his or her membership in the Judicial Retirement Plan becomes 14
effective, and any credit in the Kentucky Employees Retirement System, 15
earned for service as a judge, which he or she then has or which he or she 16
subsequently regains while being an active member of the Judicial Retirement 17
Plan, shall be transferred to and counted as service credit in the Judicial 18
Retirement Plan, and shall no longer constitute credit in the Kentucky 19
Employees Retirement System, except for the purpose of validating any other 20
credit in that system, if the member pays the difference, if any, between the 21
amount transferred from the Kentucky Employees Retirement System and the 22
actuarial value of the transferred service. 23
(b) Any credit he or she then has in the Kentucky Employees Retirement System, 24
earned for service in any capacity other than a judge, shall not be affected. 25
Notwithstanding any provisions of KRS 61.680 to the contrary, final 26
compensation used to determine benefits for any service credit remaining in 27 UNOFFICIAL COPY 22 RS BR 862
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the Kentucky Employees Retirement System shall be based on the highest 1
years of compensation as a judge whether the years occur before or after the 2
judge elects membership in the Judicial Retirement Plan. 3
(c) No person may attain credit in more than one (1) of the retirement plans or 4
systems mentioned in this section for the same period of service. When credit 5
is transferred from the Kentucky Employees Retirement System to the Judicial 6
Retirement Plan, the Kentucky Employees Retirement System shall transfer to 7
the Judicial Retirement Fund an amount equal to the employee's and 8
employer's contributions attributable to that credit, together with interest on 9
the contributions from the date made to the date of transfer at the actuarially-10
assumed interest rate of the Kentucky Employees Retirement System in effect 11
at the time the contributions were made, compounded annually at that same 12
interest rate. 13
(4) Membership and benefit rights for judges and justices [(]other than judges of the 14
District Court[)], and for the commissioners and administrative director, who took 15
office prior to July 1, 1978, shall be dependent upon valid elections having been 16
made under this section [(]and KRS 21.355 and 21.365[)] prior to the 1978 17
amendment to this section. The terms of such elections, including the contribution 18
rate, shall continue to govern for the duration of the member's service. 19
(5) When any Judge of the District Court in office on July 1, 1978, elects membership 20
in the Judicial Retirement Plan in accordance with this section, his or her 21
membership in the Kentucky Employees Retirement System shall terminate as of 22
July 1, 1978, and any credit in that system he or she earned for service as a judge of 23
the District Court shall be nullified; provided that the effect of such service to 24
validate any other service credit in that system shall not be nullified. 25
(6) The state shall, solely for the purpose of compliance with Section 414(h) of the 26
United States Internal Revenue Code, pick up the employee contributions required 27 UNOFFICIAL COPY 22 RS BR 862
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by this section for all compensation earned after August 1, 1982, and the 1
contributions so picked up shall be treated as employer contributions in determining 2
tax treatment under the United States Internal Revenue Code and KRS 141.010. The 3
picked-up employee contribution shall satisfy all obligations to the retirement 4
system satisfied prior to August 1, 1982, by the employee contribution, and the 5
picked-up employee contribution shall be in lieu of an employee contribution. The 6
state shall pay these picked-up employee contributions from the same source of 7
funds which is used to pay earnings to the employee. The employee shall have no 8
option to receive the contributed amounts directly instead of having them paid by 9
the employer to the system. Employee contributions picked up after August 1, 1982, 10
shall be treated for all purposes of KRS 21.345 to 21.570 in the same manner and to 11
the same extent as employee contributions made prior to August 1, 1982. 12
(7) An election once made under this section, either to participate or not to participate 13
in the Judicial Retirement Plan, shall be considered to apply, to all future service in 14
any office covered by the plan[, except as provided by KRS 21.374 and 21.385(3)], 15
whether such service is in the same or a different office, and whether or not it is 16
continuous. 17
Section 8. KRS 21.385 is repealed, reenacted, and amended to read as follows: 18
(1) In a situation in which, by reason of federal tax law, the failure to commence the 19
payment of retirement benefits to a vested member of the Kentucky Judicial 20
Retirement Plan, by a specified date after the member reaches a specified age, as 21
designated by the federal tax law, will result in the imposition of a special excise 22
tax, the member, without retiring, shall be entitled, as of the specified date, to 23
commence drawing from the plan the monthly benefit he or she would have been 24
entitled to had he or she retired on that date. Notwithstanding the provisions of 25
KRS 21.360 and 61.680, a member who began participating in the Judicial 26
Retirement Plan prior to January 1, 2014, may, at his or her option, continue to be a 27 UNOFFICIAL COPY 22 RS BR 862
Page 27 of 32
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participating member of the plan thereafter until he or she retires, or, may elect to 1
cease to be a participating member of the plan, in which latter event he or she shall 2
not be required to become a participating member of the Kentucky Employees 3
Retirement System. 4
(2) A member drawing benefits from the Kentucky Judicial Retirement Plan pursuant 5
to subsection (1) of this section who elects to continue as a participating member of 6
the plan, or a person drawing benefits from the plan by reason of having retired, 7
who by reason of reemployment again becomes a participating member of the plan, 8
shall continue to draw the benefits until he or she retires, and accrue additional 9
benefits, but in the calculation of the additional benefits only the years of service 10
after he or she commenced drawing the initial benefits shall be counted, and the 11
monthly additional benefit shall not exceed such amount as, when added to the 12
initial monthly benefit, will equal the final compensation on which the additional 13
benefit was calculated. The member's surviving spouse, if married to the member at 14
the time of his or her ultimate retirement, shall be considered to be the surviving 15
spouse with respect to both the additional and the initial benefits. 16
[(3) Notwithstanding any other provision of KRS 6.500 to 6.577 or 21.345 to 21.580 to 17
the contrary, an individual who retires and begins drawing a retirement allowance 18
from one (1) or more of the systems or plans administered by the Kentucky 19
Retirement Systems, the Teachers' Retirement System, or the Judicial Form 20
Retirement System on or after January 1, 2019, shall not be eligible to earn benefits 21
in the Legislators' Retirement Plan or Judicial Retirement Plan for service as a 22
judge, justice, or legislator that occurs on or after January 1, 2019.] 23
Section 9. KRS 21.402 is repealed, reenacted, and amended to read as follows: 24
(1) A member of the Legislators' Retirement Plan or the Judicial Retirement Plan, 25
whose participation in the Legislators' Retirement Plan or the Judicial Retirement 26
Plan begins on or after January 1, 2014, or a member making an election pursuant 27 UNOFFICIAL COPY 22 RS BR 862
Page 28 of 32
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to KRS 21.374, shall receive the retirement benefits provided by this section in lieu 1
of the retirement benefits provided under KRS 6.520 and 21.400. The retirement 2
benefit provided by this section shall be known as the hybrid cash balance plan and 3
shall operate as another benefit tier within the Legislators' Retirement Plan and the 4
Judicial Retirement Plan. 5
(2) The hybrid cash balance plan shall provide a retirement benefit based upon the 6
member's accumulated account balance, which shall include: 7
(a) Contributions made by the member as provided by KRS 6.500 to 6.577 and 8
21.345 to 21.580, except for employee contributions prescribed by KRS 9
6.505(1)(d)2.b. and 21.360(1)(a)3.b.; 10
(b) An employer pay credit of four percent (4%) of the creditable compensation 11
earned by the employee for each month the employee is contributing to the 12
hybrid cash balance plan provided by this section; and 13
(c) Interest credits added annually to the member's accumulated account balance 14
as provided by this section. 15
(3) (a) Member contributions and employer pay credits as provided by subsection 16
(2)(a) and (b) of this section shall be credited to the member's account 17
monthly as contributions are reported and posted to the plan. 18
(b) Interest credits, as provided by subsection (2)(c) of this section, shall be 19
credited to the member's account annually on June 30 of each fiscal year, as 20
determined by subsection (4) of this section. 21
(4) (a) On June 30 of each fiscal year, the plan shall determine if the member 22
contributed to the hybrid cash balance plan[ or another state-administered 23
retirement system] during the fiscal year. 24
(b) If the member contributed to the hybrid cash balance plan[ or another state-25
administered retirement system] during the fiscal year, the interest credit 26
added to the member's account for that fiscal year shall be determined by 27 UNOFFICIAL COPY 22 RS BR 862
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multiplying the member's accumulated account balance on June 30 of the 1
preceding fiscal year by a percentage increase equal to: 2
1. Four percent (4%); plus 3
2. Seventy-five percent (75%)[ eighty-five percent (85%)] of the plan's 4
geometric average net investment return[,] in excess of a four percent 5
(4%) rate of return[but in no case shall be less than zero percent (0%)]. 6
(c) If the member did not contribute to the hybrid cash balance plan[ or another 7
state-administered retirement system] during the fiscal year, the[then no] 8
interest credit[ shall be] added to the member's account for that fiscal year 9
shall be determined by multiplying the member's accumulated account 10
balance on June 30 of the preceding fiscal year by four percent (4%). 11
(d) For purposes of this subsection, "plan's geometric average net investment 12
return": 13
1. Means the annual average geometric investment return, net of 14
administrative and investment fees and expenses, over the last five (5) 15
fiscal years as of the date the interest is credited to the member's 16
account; and 17
2. Shall be expressed as a percentage and based upon the plan in which the 18
member has an account. 19
(5) (a) Upon termination of employment, a member who has less than five (5) years 20
of service credited under the Legislators' Retirement Plan or the Judicial 21
Retirement Plan, who elects to take a refund of his or her accumulated account 22
balance as provided by KRS 21.460, shall forfeit the accumulated employer 23
credit, and shall only receive a refund of his or her accumulated contributions. 24
(b) Upon termination of employment, a member who has five (5) or more years of 25
service credited under the Legislators' Retirement Plan or the Judicial 26
Retirement Plan, who elects to take a refund of his or her accumulated account 27 UNOFFICIAL COPY 22 RS BR 862
Page 30 of 32
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balance as provided by KRS 21.460, shall receive a full refund of his or her 1
accumulated account balance. 2
(6) A member participating in the hybrid cash balance plan provided by this section 3
may retire: 4
(a) Upon reaching normal retirement age, provided he or she has earned five (5) 5
or more years of service credited under the Legislators' Retirement Plan or the 6
Judicial Retirement Plan, or another state-administered retirement system; or 7
(b) If the member is at least age fifty-seven (57) and has an age and years of 8
service total of at least eighty-seven (87) years. The years of service used to 9
determine eligibility for retirement under this paragraph shall only include 10
years of service credited under the Legislators' Retirement Plan or the Judicial 11
Retirement Plan, or another state-administered retirement system. 12
(7) A member eligible to retire under subsection (6) of this section may elect to: 13
(a) Receive a monthly retirement allowance payable for life by having his or her 14
accumulated account balance annuitized by the retirement plan in accordance 15
with the actuarial assumptions and actuarial methods adopted by the board 16
and in effect on the member's retirement date; 17
(b) Receive the actuarial equivalent of his or her retirement allowance calculated 18
under paragraph (a) of this subsection payable under one (1) of the options set 19
forth in KRS 21.420(8)(b); or 20
(c) Take a refund of his or her accumulated account balance as provided by KRS 21
21.460. 22
(8) The board of the Judicial Form Retirement System shall establish individual 23
members' accounts for each member participating in the hybrid cash balance plan as 24
provided by this section. The Judicial Form Retirement System may promulgate 25
administrative regulations in accordance with KRS Chapter 13A to administer the 26
provisions of this section. 27 UNOFFICIAL COPY 22 RS BR 862
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(9) The provisions of this section shall not apply to members who began participating 1
in the Legislators' Retirement Plan or the Judicial Retirement Plan prior to January 2
1, 2014, except for those members who make an election pursuant to KRS 21.374. 3
Section 10. KRS 21.480 is repealed, reenacted, and amended to read as follows: 4
(1) For members who begin participating in the Judicial Retirement Plan prior to 5
January 1, 2014, it is hereby declared that in consideration of the contributions 6
by the members, and in further consideration of benefits received by the state 7
through the inducement of qualified and experienced judges and 8
commissioners to continue in service, KRS 21.350 to 21.510, except as 9
provided in KRS 6.696, shall constitute an inviolable contract of the 10
Commonwealth, and the rights and benefits provided therein shall, not be 11
subject to reduction or impairment by alteration, amendment or repeal, 12
except[:] as provided in KRS 6.696[ 13
(a) As provided in KRS 6.696; and 14
(b) The General Assembly reserves the right to amend, reduce, or suspend any 15
legislative changes to the provisions of KRS 21.345 to 21.580 that become 16
effective on or after July 1, 2018]. 17
(2) (a) For members who begin participating in the Judicial Retirement Plan on or 18
after January 1, 2014, the General Assembly reserves the right to amend, 19
suspend, or reduce the benefits and rights provided under KRS 21.345 to 20
21.580 if, in its judgment, the welfare of the Commonwealth so demands, 21
except that the amount of benefits the member has accrued at the time of 22
amendment, suspension, or reduction shall not be affected. 23
(b) For purposes of this subsection, the amount of benefits the member has 24
accrued at the time of amendment, suspension, or reduction shall be limited to 25
the accumulated account balance the member has accrued at the time of 26
amendment, suspension, or reduction. 27 UNOFFICIAL COPY 22 RS BR 862
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(c) The provisions of this subsection shall not be construed to limit the General 1
Assembly's authority to change any other benefit or right specified by KRS 2
21.345 to 21.580, for members who begin participating in the Judicial 3
Retirement Plan on or after January 1, 2014, except the benefits specified by 4
paragraph (b) of this subsection. 5
(3) The provisions of this section shall not be construed to limit the General Assembly's 6
authority to amend, reduce, or suspend the benefits and rights of members of the 7
Judicial Retirement Plan as provided by KRS 21.345 to 21.580 that the General 8
Assembly had the authority to amend, reduce, or suspend, prior to July 1, 2013. 9