KRS 161.710: Local system merged with state system.

(1) The local retirement systems merged with the state retirement system under the

provisions of 1938 Ky. Acts (1st Ex. Sess.), ch. 1, sec. 49, shall be discontinued.

The payment of all benefits to members on the retired roll at the time of

discontinuance shall become the obligation of the school district in which the local

system was operated prior to its discontinuance. The method of determining and

paying refundable deposits due members of the local system shall be as provided in

1938 Ky. Acts (1st Ex. Sess.), ch. 1, sec. 49.

(2) Payments to annuitants in cities of the first class or in areas formerly constituting a

city of the first class which have been consolidated with their county shall not

exceed the amount being received by them at the time the local r etirement system is

discontinued. The sum that remains after the death of all annuitants shall be used by

the local board of education for general school purposes.

(3) The local board of education shall continue to invest the funds transferred to it for

the benefit of the existing annuitants as long as such annuitants live. Such

investment shall be governed by 1934 Ky. Acts, ch. 65, Art. IX, except that the

local board of education is substituted for the board of trustees of the local

retirement system. The local board of education shall keep all funds transferred to it

by the local retirement system and all income from the investment of such funds in

a separate fund to be known as the annuity fund. The local board of education may

pay from the fund any reas onable expenses necessary for the fund's administration

and general management. The local board of education shall safeguard the fund by

requiring such additional surety bond of the treasurer as it deems necessary, by

providing for an annual audit by a rep utable auditing firm, by spreading on the

minutes of the board of education at least annually a report of investments, assets,

and liabilities, and the names, addresses, and annuities of annuitants, and by making

such an appropriation to the fund from loca l school revenues as will guarantee the

full and complete discharge of all obligations to annuitants.