KRS 161.340: Officers of board -- Personnel of system -- Contracting for services and

commodities -- Liability insurance -- Leave balances.

(1) (a) The board of trustees shall elect from its membership a chairperson and a vice

chairperson on an annual bas is as prescribed by the administrative regulations

of the board of trustees. The chairperson shall not serve more than four (4)

consecutive years as chairperson or vice chairperson of the board. The vice

chairperson shall not serve more than four (4) conse cutive years as

chairperson or vice chairperson of the board. A trustee who has served four

(4) consecutive years as chairperson or vice chairperson of the board may be

elected chairperson or vice chairperson of the board after an absence of two

(2) years from the position.

(b) The board of trustees shall employ an executive secretary by means of a

contract not to exceed a period of four (4) years and fix the compensation and

other terms of employment for this position without limitation of the

provisions o f KRS Chapters 18A, 45A, 56, and KRS 64.640. The executive

secretary shall be the chief administrative officer of the board. The executive

secretary, at the time of employment, shall be a graduate of a four (4) year

college or university, and shall possess qualifications as the board of trustees

may require. The executive secretary shall not have held by appointment or

election an elective public office within the five (5) year period next preceding

the date of employment.

(2) The board shall employ clerical, administrative, and other personnel as are required

to transact the business of the retirement system. The compensation of all persons

employed by the board shall be paid at the rates and in amounts as the board

approves. Anything in the Kentucky Revise d Statutes to the contrary

notwithstanding, the power over and the control of determining and maintaining an

adequate complement of employees in the system shall be under the exclusive

jurisdiction of the board of trustees.

(3) (a) Except as provided by KR S 161.430(7), the board shall contract for actuarial,

auditing, legal, medical, investment counseling, and other professional or

technical services, insurance, and commodities, as are required to carry out the

obligations of the board in accordance with th e provisions of this chapter,

subject to KRS Chapters 45, 45A, 56, and 57 but without the limitations

provided by KRS Chapters 12 and 13B.

(b) The board shall provide for legal counsel and other legal services as may be

required in defense of trustees, off icers, and employees of the system who

may be subjected to civil action arising from the performance of their legally

assigned duties if counsel and services are not provided by the Attorney

General. The hourly rate of reimbursement for any contract for le gal services

under this paragraph shall not exceed the maximum hourly rate provided in

the Legal Services Duties and Maximum Rate Schedule promulgated by the

Government Contract Review Committee established pursuant to KRS

45A.705, unless a higher rate is specifically approved by the secretary of the

Finance and Administration Cabinet or his or her designee.

(4) The board of trustees may expend funds from the expense fund as necessary to

insure the trustees, employees, and officials of the Teachers' Retirem ent System

against any liability arising out of an act or omission committed in the scope and

course of performing legal duties. Insurance may be obtained or provided by

contracting with an insurance carrier, by self -insurance, by indemnification, or by

any combination thereof.

(5) Notwithstanding any statute to the contrary, employees shall not be considered

legislative agents as defined in KRS 6.611.

(6) Notwithstanding any statute to the contrary, the executive branch of government

shall accept from the Teachers' Retirement System all accrued annual and sick leave

balances and service credits of employees leaving the Teachers' Retirement System

and accepting appointments within the executive branch. These leave balances shall

be attested to by the Teacher s' Retirement System and shall not exceed those limits

established by statute or administrative regulation for employees of the executive

branch.