KRS 18A.270: Local programs.

(1) Any city, county, or other political subdivision or combination of these entities may

establish for its employees a deferred compensation program. Notwithstanding the

provisions of KRS 337.060, participation shall be by written agreement or by

electronic r ecord, signature, or contract and in accordance with the provisions of

KRS 369.101 to 369.120 between such employees and the legislative authority of

the city, county, or other political subdivision providing for the deferral of such

compensation and the s ubsequent investment and administration of such funds.

Agreements and elections, including but not limited to hardship withdrawal

applications, loan applications, beneficiary designations, and withdrawal requests

made by participating employees under the plans, shall not be denied legal effect or

enforceability if made electronically to the extent permitted by the authority.

(2) Such subdivision, acting through its legislative authority, may appoint such agency

or department as it deems appropriate to estab lish and administer a deferred

compensation plan pursuant to KRS 18A.230 to 18A.275. For purposes of funding

such agreements between the city, county, or other such political subdivision and

the participating employees, the agency or department as designat ed by the

legislative authority to establish and administer such plans may invest such funds in

such investments deemed appropriate by said agency or department, including, but

not limited to annuity contracts.

(3) In no case shall such investment be other than permitted by KRS 18A.230 to

18A.275 and not prohibited by Section 179 of the Kentucky Constitution and must

be offered by such persons or companies authorized and duly licensed by the State

of Kentucky and applicable federal regulatory agencies to of fer such insurance or

investment programs in compliance with all relevant provisions of KRS 18A.230 to

18A.275.

(4) Such a deferred compensation program is in addition to any retirement or pension

system or any other benefit program provided by law for emp loyees of the city,

county, or other political subdivision. Any income deferred under such a plan shall

continue to be included as regular compensation for the purpose of computing the

retirement and pension benefits earned by any employee but any sum so d educted

shall not be included in the computation of any income taxes withheld for any such

employee.

(5) This section does not limit the power or authority of any municipal corporation or

other political subdivision to provide other such plans or programs for deferring

compensation of their officials and employees.