{"data":{"id":"us-ky/krs-161.633","jurisdiction":"us-ky","citation":"KRS 161.633","heading":"Foundational component for persons who became nonuniversity members","body":"on or after January 1, 2022 -- Valuation assessment -- Adjustments to maintain\nfunding level and contain costs -- Construction.\n(1) Individuals who become nonuniversity membe rs of the Teachers' Retirement\nSystem on or after January 1, 2022, shall be provided a foundational plan, which\nshall be known as the foundational benefit component, a supplemental benefit\ncomponent established by KRS 161.635, and retiree health benefits a s provided by\nKRS 161.675. For purposes of this section, the foundational benefit component\nincludes all benefits provided by KRS 161.220 to 161.716 for individuals who\nbecome nonuniversity members of the Teachers' Retirement System on or after\nJanuary 1, 2022, with the exception of the supplemental benefit component\nestablished by KRS 161.635 and retiree health benefits established by KRS\n161.675.\n(2) Notwithstanding KRS 161.220 to 161.716, the actuary designated by the board of\ntrustees under KRS 161.400 shall, as part of the annual valuation of the pension\nfund, assess the funding levels, unfunded liabilities, and the actuarially required\nemployer contribution rates payable solely on behalf of individuals who first\nbecome nonuniversity members on or after  January 1, 2022. Computation of the\nemployer contribution rate payable shall be based upon amortizing unfunded\nliabilities using the level-dollar amortization method.\n(3) If, on the basis of the valuation assessment required under subsection (2) of this\nsection, the funding level for the foundational benefit component payable on behalf\nof individuals who first become nonuniversity members on or after January 1, 2022,\nfalls below ninety percent (90%), the board shall, notwithstanding any other\nprovision of KRS 161.220 to 161.716 to the contrary, make one (1) or more of the\nfollowing changes to maintain the funding level and to contain pension and life\ninsurance benefit costs within the maximum statutory employer contribution rate for\nthe foundational benefit  component of eight percent (8%) of annual compensation\nas provided by KRS 161.550(1)(d)1.:\n(a) Utilize moneys from the stabilization reserve account for nonuniversity\nmembership and employers established by KRS 161.420(10)(a);\n(b) Utilize prospective mand atory employee and employer contributions to the\nsupplemental benefit component as provided by KRS 161.635 to provide\nfunding for the foundational benefit component; or\n(c) Prospectively adjust for individuals who become nonuniversity members on or\nafter J anuary 1, 2022, one (1) or more of the following parts of the\nfoundational benefit component:\n1. Regular interest rate established by KRS 161.220(13)(c);\n2. The retirement factors established by KRS 161.620(1)(f);\n3. The age and service requirements to re tire as established by KRS\n161.600(2);\n4. The cost-of-living adjustment established by KRS 161.620(2); or\n5. The age and service requirements and the retirement allowance provided\nduring the entitlement period under KRS 161.661.\nNotwithstanding any other  provision of KRS 161.220 to 161.716 to the\ncontrary, the board of trustees may utilize any and all of the above adjustments\nat any time on all individuals who become nonuniversity members on or after\nJanuary 1, 2022, in order to maintain the funding level  of the foundational\nbenefit component and employer costs as provided by this subsection.\n(4) For purposes of this section, \"funding level\" means the actuarial value of assets\ndivided by the actuarially accrued liability expressed as a percentage that is\ndetermined and reported by the system's actuary in the system's actuarial valuation.\n(5) This section shall only apply to individuals who became nonuniversity members of\nthe Teachers' Retirement System on or after January 1, 2022.\n(6) The provisions of this section shall not be construed to authorize the board to\nretroactively restore benefits or el igibility for benefits in the foundational benefit\ncomponent or supplemental benefit that were previously reduced by the board\npursuant to subsection (3)(b) and (c) of this section.","path":["KRS Chapter 161"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=51789","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:11Z","sha256":"af7f1ec7a71fef8307947ee2061a77927fbc4ef69f0c180b31071766b6dab50b","source_id":"us-ky","stale":false,"prev":"us-ky/krs-161.630","next":"us-ky/krs-161.634"},"notice":"GroundRules: Original legal text. Not legal advice."}