KRS 96.180: Pension plan for employees -- Repeal of ordinances establishing pension

fund -- Liquidation and distribution of assets -- Report -- Coverage provided

in County Employees Retirement System after August 1, 1988.

(1) The board may, by proper order, prov ide a pension plan for its employees. In the

event the board elects to provide a pension plan, it shall determine and formulate

the form of pension plan to be used; determine and prescribe the eligibility of

employees or their dependents to a pension or ot her benefits; determine and

prescribe the monthly allowance or pension for employees or their dependents so

determined to be eligible for a pension or benefits under the pension plan, not to

exceed, however, a sum equal to one -half (1/2) of the monthly sal ary or wages of

any employee at the time of his or her retirement; appoint a commission, which

shall consist of three (3) members possessing the qualifications of a member of the

board, for the administration of the pension plan and prescribe the powers an d

duties of such commission; appoint a trustee of the pension fund, fix the term of his

office and the compensation of such trustee, and prescribe the powers and duties of

such trustee and do and perform any other or further acts necessary to effectuate

such pension plan. When a pension plan shall have been adopted, a commission

appointed to administer such plan and a trustee of the pension fund appointed and

qualified, the board may annually appropriate and pay out of its operating revenue,

as an operating expense, into the sinking fund, a sum sufficient, when determined

on a fair actuarial basis, to maintain the pension plan so adopted, not exceeding,

however, a sum equal to one -half of one percent (0.5%) of the fair value of the

utility property and asset s. The board may assess, and cause to be paid into the

pension fund monthly, such amount or percent of the salary of all employees

eligible under and electing to accept the pension plan as may be equitably

determined on a fair actuarial basis, not to excee d, however, five percent (5%) of

the monthly salary of any employee. The trustee of the pension fund shall give such

bond as required by the board, the cost of which shall be payable out of the pension

fund. The trustee of the pension fund shall each year file with the board a report

showing his actions and his accounts as such trustee.

(2) The board shall have full power to receive any and all funds of property which may

be available or become available to the board or the city for use in the creation or

maintenance of a pension plan for the employees of the board, including but not

limiting the power to sign, execute and deliver such receipts, indemnity agreement

or other writing which either the board or the city may be required to sign, execute

and deliver to obtain any such fund or property for such purpose.

(3) If all liabilities to all individuals entitled to benefits from the pension fund

established under this section have been satisfied, the ordinances establishing the

fund may be repealed by the majority vote of the entire board. If repealed, the fund's

trustees shall, within sixty (60) days of repeal, proceed with the liquidation of any

residual assets of the fund. All residual assets liquidated pursuant to this subsection

shall be distributed by t he trustees to the board's general fund so long as the return

of assets complies with federal and state law governing the distribution of assets.

Within thirty (30) days following the distribution of residual assets, the trustees of

the fund shall as its last act file a complete report with the board of the actions taken

to terminate the fund and liquidate residual assets of the fund.

(4) (a) After August 1, 1988, except as permitted by KRS 65.156, no new pension

fund shall be created pursuant to this secti on and boards which were covered

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

Employees Retirement System effective August 1, 1988.

(b) Any board which provided a pension plan for its employees on or prior to

August 1, 198 8, shall place employees hired after August 1, 1988, in the

County Employees Retirement System. The board shall offer employees hired

on or prior to August 1, 1988, membership in the County Employees

Retirement System under the alternate participation plan as described in KRS

78.530(3), but such employees may elect to retain coverage under this section.