{"data":{"id":"us-ky/krs-161.677","jurisdiction":"us-ky","citation":"KRS 161.677","heading":"Kentucky Teachers' Retirement System insurance trust fund.","body":"(1) (a) The Kentucky Teachers' Retirement System insurance trust fund is hereby\ncreated. All assets received in the trust fund shall be deemed trust funds to be\nheld and applied solely as provided in this section. Assets of the trust fund\nshall not be used for any other purpose and shall not be used to pay the claims\nof creditors or any individual, person, or employer participating in the\nKentucky Teachers' Retirement System.\n(b) The trust fund is intended to be established as a trust exempt from taxation\nunder 26 U.S.C. sec. 115.\n(2) The trust fund is created for the purpose of providing a trust separate from the funds\nunder KRS 161.420. Trust fund assets are dedicated for use for health benefits as\nprovided in KRS 161.675, and as permitted under 26 U.S.C. secs. 10 5 and 106, for\npresent and future eligible recipients of a retirement allowance from the Kentucky\nTeachers' Retirement System.\n(3) The trust fund shall be administered by the board of trustees established by KRS\n161.250, and the board shall serve as truste es of the fund. The board shall manage\nthe assets of the fund in the same general manner in which it administers the\nretirement funds, except that the asset allocation may differ and separate accounting\nand financial reporting shall be maintained for the trust fund.\n(4) In addition to the requirements of subsection (2) of this section, the employers\nparticipating in the trust fund are limited to the Commonwealth, political\nsubdivisions of the Commonwealth, and entities whose income is exempt from\ntaxation under 26 U.S.C. sec. 115. No other entity may participate in the trust fund.\n(5) If the trust fund is terminated, the assets in the trust fund may revert, after the\npayment of all liabilities, to the participating employers as determined by the board\nof trustees.\n(6) The board of trustees may promulgate administrative regulations and adopt\nprocedures and a trust document to implement this section and take all action\nnecessary and appropriate to provide that the income of the trust fund shall not\ndiminish or expand the rights of any recipients, employees, or dependents to health\nbenefits.\n(7) The establishment of the Kentucky Teachers' Retirement System insurance trust\nfund shall not diminish or expand the rights of any recipients, employees, or\ndependents to health benefits.\n(8) The trust fund established under this section, at the direction of the board of\ntrustees, shall consist of amounts, excluding those amounts that have been deposited\nto an account established pursuant to 26 U.S.C. sec. 401(h), that have  been\naccumulated for the purpose of providing benefits as provided in KRS 161.675,\nincluding:\n(a) Contributions required under KRS 161.550;\n(b) Contributions required under KRS 161.675(4)(b); and\n(c) Interest income from the investments of the fund from c ontributions received\nby the fund and from income earned on those investments.","path":["KRS Chapter 161"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=3981","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:11Z","sha256":"1b7089cadc799e41486bcdcf9aafc5a8845b70ffd789f7df287227e5d2822fa3","source_id":"us-ky","stale":false,"prev":"us-ky/krs-161.675","next":"us-ky/krs-161.680"},"notice":"GroundRules: Original legal text. Not legal advice."}