KRS 95.761: Adoption of civil service, employees retirement system, and police and

firefighters' pension plan in cities with population of 1,000 to 7,999 --

Exemptions from classified service -- Limitations on creation of new fund after

August 1, 1988.

(1) Any city with a population equal to or greater than one thousand (1,000) but less

than eight thousand (8,000) based upon the most recent federal decennial census

which has now, or in which there may be hereafter established a regular police or

fire department in the future, may by ordinance create a civil service commission,

whose duties shall be to hold examinations as to the qualifications of applicants for

employment within the police or fire departments. If a city elects to establish a civil

service system for its police and fire employees under this section, then it may adopt

either the provisions of this section, or KRS 95.762 to 95.766, or it may adopt the

provisions of KRS 90.300 to 90.420. A city meeting the population criteria of this

subsection may adopt the provisions of KRS 90.300 to 90.420 for municipal

employees who are not police or fire personnel.

(2) Any city meeting the criteria of subsection (6) of this section may provide a

retirement system for any of its employees, including police an d firefighters,

pursuant to KRS 90.400 or 90.410. If a city creates a retirement system for its police

and firefighters pursuant to KRS 90.400 or 90.410, it shall establish a board of

trustees for that system. The provisions of KRS 90.400 and 90.410 notwithstanding,

a majority of the board shall be members of the retirement system elected by the

members of the retirement system, except that if there are fewer than six (6) active

and retired members of the fund, the board of trustees shall be composed of the

mayor, city treasurer or chief financial officer, and two (2) employees appointed by

the mayor, one (1) from the city police department and one (1) from the city fire

department, who shall serve for one (1) year and until their respective successors are

appointed and qualified. If all of the members of the pension fund are from one (1)

department, no appointment shall be made from the other department. The board of

trustees shall control and manage the retirement fund, for the exclusive purposes of

providing benefits to members and their beneficiaries and defraying reasonable

expenses of administering the plan. The board may contract with investment

advisors or managers to perform investment services as deemed necessary and

prudent by the board.

(3) A city meeting the criteria of subsection (6) of this section may adopt the provisions

of KRS 79.080 or 78.510 to 78.852 for any of its employees, or either KRS 95.520

to 95.620 or KRS 95.767 to 95.784 for its police and firefighters. After adoption of

the provisions of any of the statutes listed in this section, the city may not revoke,

rescind or repeal these adoptions for any employee covered thereby.

(4) (a) Any of the following offices, positions, and places of employment, in the

police and fire departments, may be excluded from the classified service: The

chief of police, assistant chief of police, chief of firefighters and assistant

chief of firefighters.

(b) Any classified employee in either department who shall accept an appointment

and qualify as chief of police, assistant chief of police, chief of firefighters, or

assistant chief of firefighters, shall be deemed to have received a leave of

absence from the classified service for, and during the incumbency of, any of

said respective positions. Should any s uch chief or assistant chief, cease to

serve as such, the same classification and rank which he had prior to said

appointment shall be restored to him.

(5) After August 1, 1988, no city shall create a new pension fund pursuant to this

section other than by adopting KRS 78.510 to 78.852, or by adopting a deferred

compensation program pursuant to KRS 18A.270 or a defined contribution or

money purchase plan qualified under Section 401(a) of the Internal Revenue Code

of 1954 as amended. Any city which adopted a pension system pursuant to this

section on or prior to August 1, 1988, shall participate in the County Employees

Retirement System effective August 1, 1988.

(6) As used in subsections (2) and (3) of this section, "city" means only those cities that

were p reviously classified as cities of the fourth and fifth class under the

classification system that was in effect before August 1, 1988.

(7) Notwithstanding subsection (1) of this section, no city shall adopt any civil service

system for any of its employees during the months of November or December in

any even-numbered year.

(8) Any city that creates a civil service commission pursuant to this section may repeal

or amend the ordinance at the discretion of the city legislative body. The city

legislative body shall not repeal any provisions of the ordinance governing the

maintenance of a pension fund.