KRS 78.640: Members' account -- Interest -- Transfer of account balance to retirement

allowance account.

(1) The members' account shall be the account to which:

(a) All members' contributions, or contributions picked up by the employer after

August 1, 1982, and interest allowances as provided in KRS 78.510 to 78.852

shall be credited, except as provided by KRS 78.5536(3)(b); and

(b) For members who begin participating in the system on or after January 1,

2014, the employer pay credit and interest credited on such amounts as

provided by KRS 78.5512 and 78.5516 shall be credited.

Only funds from this account shall be used to return the accumulated contributions

or accumulated account balances of a member when required to be returned to him

or her by reason o f any provision of KRS 78.510 to 78.852. Prior to the member's

retirement, death, or refund in accordance with KRS 61.625, no funds shall be made

available from the member account.

(2) Each member's contribution or contribution picked up by the employer sh all be

credited to the individual account of the contributing member, except as provided

by KRS 78.5536(3)(b).

(3) (a) Each member shall have his or her individual account credited with interest on

June 30 of each year.

(b) For a member who begins particip ating before September 1, 2008, interest

shall be credited to his or her individual account at a rate determined by the

board but not less than two percent (2%) per annum on the accumulated

account balance of the member on June 30 of the preceding fiscal year.

(c) For a member who begins participating on or after September 1, 2008, but

prior to January 1, 2014, interest shall be credited to his or her individual

account at a rate of two and one -half percent (2.5%) per annum on the

accumulated contributions of the member on June 30 of the preceding fiscal

year.

(d) For a member who begins participating on or after January 1, 2014, in the

hybrid cash balance plan, interest shall be credited in accordance with KRS

78.5512 and 78.5516.

(e) The amounts of interest credited to a member's account under this subsection

shall be transferred from the retirement allowance account.

(4) (a) Upon the retirement of a member who began participating in the system prior

to January 1, 2014, his or her accumulated account balance shall be

transferred from the members' account to the retirement allowance account.

(b) Upon the retirement of a member who began participating in the system on or

after January 1, 2014, who elects to annuitize his or her accumulated account

balance as prescribed by KRS 78.5512(7)(a) or (b) or 78.5516(7)(a) or (b), the

member's accumulated account balance shall be transferred to the retirement

allowance account.