KRS 42.205: Permanent pension fund.

(1) There is hereby established within the Finance and Administration Cabinet the

Kentucky permanent pension fund for the purpose of addressing the

Commonwealth's unfunded pension liabilities. The proceeds contained in this fund

shall be used only for contributions to the Commonwealth's pension funds.

(2) The fund may receive:

(a) State appropriations;

(b) The net proceeds from the sale of real property owned by the Commonwealth

or any agency thereof; and

(c) Any settlements or judgments resulting from litigati on in which the

Commonwealth or any of its agencies is a party, after costs of litigation and

mandatory deductions or restitution to consumers have been deducted.

(3) Any unallotted or unencumbered balances in the fund shall be invested pursuant to

KRS 42.500.

(4) Income earned from the investments shall be credited to and become part of the

fund.

(5) Notwithstanding KRS 45.229, any fund balance at the close of the fiscal year shall

not lapse but shall be carried forward to the next fiscal year. All amounts in the fund

shall remain in the fund and shall not be expended or appropriated without the

express authority in an enacted biennial budget bill.