KRS 78.852: Benefits not to be reduced or impaired for members who began

participating before January 1, 2014 -- Exceptions -- Amendment of benefits

and rights -- Employers' funding responsibility -- Authority of board when

employer fails to meet funding requirements.

(1) For members who begin participating in the County Employees Retirement System

prior to January 1, 2014, it is hereby declared that in consideration of the

contributions by the members and in further consideration of benefits received by

the county from the member's employment, KRS 78.510 to 78.852 shall, except as

provided in KRS 6.696, constitute an inviolable contract of the Commonwealth, and

the benefits provided therein shall not be subject to reduction or impairment by

alteration, amendment, or repeal.

(2) (a) For members who begin participating in the County Employees Retirement

System on or after January 1, 2014, the General Assembly reserves the right

to amend, suspend, or reduce the benefits and rights provided under KRS

78.510 to 78.852 if, in its judgment, the welfare of the Commonwealth so

demands, except that the amount of benefits the member has accrued at the

time of amendment, suspension, or reduction shall not be affected.

(b) For purposes of this subsection, the amount of benefits the member has

accrued at the time of amendment, suspension, or reduction shall be limited to

the accumulated account balance the member has accrued at the time of

amendment, suspension, or reduction.

(c) The provisions of this subsection shal l not be construed to limit the General

Assembly's authority to change any other benefit or right specified by KRS

78.510 to 78.852, except the benefits specified by paragraph (b) of this

subsection, for members who begin participating in the County Employ ees

Retirement System on or after January 1, 2014.

(3) The provisions of this section shall not be construed to limit the General Assembly's

authority to amend, reduce, or suspend the benefits and rights of members of the

County Employees Retirement System as provided by KRS 78.510 to 78.852 that

the General Assembly had the authority to amend, reduce, or suspend, prior to July

1, 2013.

(4) The responsibility for funding the provisions of KRS 78.510 to 78.852 shall be the

responsibility of the employers par ticipating in the County Employees Retirement

System. For any employer failing to fund the requirements of KRS 78.510 to

78.852, the board shall have the full authority under the law to:

(a) Require the employer to involuntarily cease participating and pay all costs for

ceasing participation as provided by KRS 78.535; or

(b) Suspend benefit payments and refunds or to seek legal action as provided by

KRS 78.625 for any employer failing to fund the requirements of KRS 78.510

to 78.852.