{"data":{"id":"us-ky/krs-16.583","jurisdiction":"us-ky","citation":"KRS 16.583","heading":"Hybrid cash balance plan for members of State Police Retirement System","body":"and Kentucky Employees Retirement System in hazardous duty positions --\nMember contributions and employer pay credits -- Interest credits --\nTermination of employment -- Options upon retirement -- Applicability of\nstatute.\n(1) A member of the State Police Retirement System, a member of the Kentucky\nEmployees Retirement System in a hazardous duty position covered by this section,\nwhose participation begins on or after January  1, 2014, or a member making an\nelection pursuant to KRS 61.5955, shall receive the retirement benefits provided by\nthis section in lieu of the retirement benefits provided under KRS 16.576 and\n16.577. The retirement benefit provided by this section shall be known as the\nhybrid cash balance plan and shall operate as another benefit tier within the State\nPolice Retirement System and the Kentucky Employees Retirement System.\n(2) The hybrid cash balance plan shall provide a retirement benefit based upon the\nmember's accumulated account balance, which shall include:\n(a) Contributions made by the member as provided by KRS 16.505 to 16.652 and\n61.510 to 61.705, except for employee contributions prescribed by KRS\n61.702(3)(b);\n(b) 1. An employer pay credit of seven  and one -half percent (7.5%) of the\ncreditable compensation earned by the employee for each month the\nemployee is contributing to the hybrid cash balance plan provided by\nthis section; and\n2. For members of the State Police Retirement System covered by thi s\nsection, an employer pay credit for the value of accumulated sick leave\nas determined and limited by KRS 16.584; and\n(c) Interest credits added annually to the member's accumulated account balance\nas provided by this section.\n(3) (a) Member contributions  and employer pay credits as provided by subsection\n(2)(a) and (b)1. of this section shall be credited to the member's account\nmonthly as contributions are reported and posted to the system in accordance\nwith KRS 61.675.\n(b) Interest credits, as provided by subsection (2)(c) of this section, shall be\ncredited to the member's account annually on June 30 of each fiscal year, as\ndetermined by subsection (4) of this section.\n(c) Employer pay credits for accumulated sick leave shal l be credited to the\nmember's account as determined by KRS 16.584.\n(4) (a) On June 30 of each fiscal year, the system shall determine if the member\ncontributed to the hybrid cash balance plan during the fiscal year.\n(b) If the member contributed to the hyb rid cash balance plan during the fiscal\nyear, the interest credit added to the member's account for that fiscal year\nshall be determined by multiplying the member's accumulated account\nbalance on June 30 of the preceding fiscal year by a percentage increas e equal\nto:\n1. Four percent (4%); plus\n2. Seventy-five percent (75%) of the system's geometric average net\ninvestment return in excess of a four percent (4%) rate of return.\n(c) If the member did not contribute to the hybrid cash balance plan during the\nfiscal year, the interest credit added to the member's account for that fiscal\nyear shall be determined by multiplying the member's accumulated account\nbalance on June 30 of the preceding fiscal year by four percent (4%).\n(d) For purposes of this subsection,  \"system's geometric average net investment\nreturn\":\n1. Means the annual average geometric investment return, net of\nadministrative and investment fees and expenses, over the last five (5)\nfiscal years as of the date the interest is credited to the member' s\naccount; and\n2. Shall be expressed as a percentage and based upon the system in which\nthe member has an account.\n(e) No employer pay credits or interest credits shall be provided to a member who\nhas taken a refund of contributions as provided by KRS 61.6 25 or who has\nretired and annuitized his or her accumulated account balance as prescribed\nby this section.\n(5) (a) Upon termination of employment, a member who has less than five (5) years\nof service credited under KRS 16.543(1), 61.543(1), and 78.615(1), who\nelects to take a refund of his or her accumulated account balance as provided\nby KRS 61.625, shall forfeit the accumulated employer credit, and shall only\nreceive a refund of his or her accumulated contributions.\n(b) Upon termination of employment, a m ember who has five (5) or more years\nof service credited under KRS 16.543(1), 61.543(1), and 78.615(1), who\nelects to take a refund of his or her accumulated account balance as provided\nby KRS 61.625, shall receive a full refund of his or her accumulated a ccount\nbalance.\n(6) A member participating in the hybrid cash balance plan provided by this section\nmay retire:\n(a) At his or her normal retirement date, provided he or she has earned five (5) or\nmore years of service credited under KRS 16.543(1), 61.543(1 ), or 78.615(1),\nor another state-administered retirement system; or\n(b) At any age, provided he or she has earned twenty -five (25) or more years of\nservice credited under KRS 16.543(1), 61.543(1), or 78.615(1), or another\nstate-administered retirement system.\n(7) A member eligible to retire under subsection (6) of this section may elect to:\n(a) Receive a monthly retirement allowance payable for life by having his or her\naccumulated account balance annuitized by the retirement systems in\naccordance with the  actuarial assumptions and actuarial methods adopted by\nthe board and in effect on the member's retirement date;\n(b) Receive the actuarial equivalent of his or her retirement allowance calculated\nunder paragraph (a) of this subsection payable under one (1)  of the options set\nforth in KRS 61.635, except for the option provided by KRS 61.635(11); or\n(c) Take a refund of his or her account balance as provided by KRS 61.625.\n(8) The provisions of this section shall not apply to members who began participating\nin the Kentucky Employees Retirement System, the County Employees Retirement\nSystem, or the State Police Retirement System prior to January 1, 2014, except for\nthose members who make an election pursuant to KRS 61.5955.","path":["KRS Chapter 16"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53364","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:48:37Z","sha256":"5f49a68a1d1056ba5e56815cf1ac6a2752cd299c9bfdfa0343441fe1f633e85f","source_id":"us-ky","stale":false,"prev":"us-ky/krs-16.582","next":"us-ky/krs-16.584"},"notice":"GroundRules: Original legal text. Not legal advice."}