{"data":{"id":"us-ky/krs-161.611","jurisdiction":"us-ky","citation":"KRS 161.611","heading":"Supplemental retirement benefit plan -- Purpose -- Administration --","body":"Eligibility -- Payments.\n(1) The board of trustees is authorized to provide a supplemental retirement benefit\nplan for the sole purpose of enabling the employer to apply the same for mula for\ndetermining benefits payable to all members of the retirement system employed by\nthe employer, whose benefits under the retirement system are limited by Section\n415 of the Internal Revenue Code of 1986, as amended from time to time. This plan\nis intended to constitute a qualified governmental excess benefit plan as described\nin Section 415 of the Internal Revenue Code.\n(2) The board of trustees shall administer this plan and have full discretionary fiduciary\nauthority to determine all questions in connection with the plan. The board of\ntrustees may adopt procedural rules and administrative regulations and may employ\nand rely on any legal counsel, actuaries, accountants, and agents as it deems\nadvisable to assist in the administration of this plan.\n(3) All members and retired former members in the retirement system shall be eligible\nto participate in this plan whenever their benefits under the retirement system would\nexceed the limitation on benefits imposed by Section 415 of the Internal Revenue\nCode.\n(4) On or after the effective date of this plan, the employer shall pay to each eligible\nmember in the retirement system who retires on or after that date and to each former\nmember who retired before that date and his or her beneficiaries a supplemental\npension benefit, equal to the amount by which the benefit that would have been\npayable under the retirement system, without regard to any provision therein\nincorporating the limitation on benefits imposed by Section 415 of the Internal\nRevenue Code, exceed s the benefit actually payable, taking into account the\nlimitation imposed on the retirement system by Section 415 of the code. These\nsupplemental pension benefits shall be computed and payable under the same terms\nand conditions and to the same person as the benefits payable to, or on account of,\nan eligible member under the retirement system.\n(5) Benefits payable under this plan shall not be subject to the dollar limit applicable to\neligible deferred compensation plans under Section 457 of the Internal Re venue\nCode, nor to the \"substantial risk or forfeiture\" rules of Section 457(f) of the code\napplicable to ineligible deferred compensation plans. In addition, benefits payable\nunder this plan shall not be taken into account in determining whether any other\nplan of the employer is an eligible deferred compensation plan under Section 457 of\nthe code.\n(6) Funding of benefits payable under this plan shall be provided by the state, as\nemployer, and shall be segregated from funds that are maintained by the retire ment\nsystem for payment of the regular benefits provided by the retirement system. The\nemployer may establish a grantor trust for payment of benefits provided under this\nplan, with the employer treated as \"grantor\" thereof for purposes of Section 677 of\nthe Internal Revenue Code. The rights of any person to receive benefits under this\nplan are limited to those of a general creditor of the employer.","path":["KRS Chapter 161"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=3962","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:11Z","sha256":"095c473f3361d8d84425a8423b284eb055682995e24a7fcea363ae981939201f","source_id":"us-ky","stale":false,"prev":"us-ky/krs-161.610","next":"us-ky/krs-161.612"},"notice":"GroundRules: Original legal text. Not legal advice."}