KRS 161.611: Supplemental retirement benefit plan -- Purpose -- Administration --

Eligibility -- Payments.

(1) The board of trustees is authorized to provide a supplemental retirement benefit

plan for the sole purpose of enabling the employer to apply the same for mula for

determining benefits payable to all members of the retirement system employed by

the employer, whose benefits under the retirement system are limited by Section

415 of the Internal Revenue Code of 1986, as amended from time to time. This plan

is intended to constitute a qualified governmental excess benefit plan as described

in Section 415 of the Internal Revenue Code.

(2) The board of trustees shall administer this plan and have full discretionary fiduciary

authority to determine all questions in connection with the plan. The board of

trustees may adopt procedural rules and administrative regulations and may employ

and rely on any legal counsel, actuaries, accountants, and agents as it deems

advisable to assist in the administration of this plan.

(3) All members and retired former members in the retirement system shall be eligible

to participate in this plan whenever their benefits under the retirement system would

exceed the limitation on benefits imposed by Section 415 of the Internal Revenue

Code.

(4) On or after the effective date of this plan, the employer shall pay to each eligible

member in the retirement system who retires on or after that date and to each former

member who retired before that date and his or her beneficiaries a supplemental

pension benefit, equal to the amount by which the benefit that would have been

payable under the retirement system, without regard to any provision therein

incorporating the limitation on benefits imposed by Section 415 of the Internal

Revenue Code, exceed s the benefit actually payable, taking into account the

limitation imposed on the retirement system by Section 415 of the code. These

supplemental pension benefits shall be computed and payable under the same terms

and conditions and to the same person as the benefits payable to, or on account of,

an eligible member under the retirement system.

(5) Benefits payable under this plan shall not be subject to the dollar limit applicable to

eligible deferred compensation plans under Section 457 of the Internal Re venue

Code, nor to the "substantial risk or forfeiture" rules of Section 457(f) of the code

applicable to ineligible deferred compensation plans. In addition, benefits payable

under this plan shall not be taken into account in determining whether any other

plan of the employer is an eligible deferred compensation plan under Section 457 of

the code.

(6) Funding of benefits payable under this plan shall be provided by the state, as

employer, and shall be segregated from funds that are maintained by the retire ment

system for payment of the regular benefits provided by the retirement system. The

employer may establish a grantor trust for payment of benefits provided under this

plan, with the employer treated as "grantor" thereof for purposes of Section 677 of

the Internal Revenue Code. The rights of any person to receive benefits under this

plan are limited to those of a general creditor of the employer.