{"data":{"id":"us-ky/krs-18a.245","jurisdiction":"us-ky","citation":"KRS 18A.245","heading":"Board of trustees -- Membership, terms, meetings -- Powers -- Executive","body":"director -- Annual financial report.\n(1) The authority shall be administered by a board of trustees composed of seven (7)\nmembers, who shall be as follows:\n(a) Secretary, Finance and Administration Cabinet, ex officio;\n(b) Secretary of personnel, ex officio;\n(c) The state controller, ex officio;\n(d) The State Treasurer, ex officio; and\n(e) Three (3) at -large members appointed by the Governor, who do not have a\nconflict of interest as provided by KRS 18A.262, one (1) of whom shall have\nat least five (5) years of investment or banking experience and one (1) of\nwhom shall be a representative of a nonstate government employer.\n(2) The members of the board appointed by the  Governor shall serve for a period of\nfour (4) years and the ex officio members of the board shall serve only for the\nperiod of their term of office. Each ex officio member may designate a proxy by\nwritten notice to the authority prior to call of order of each meeting, and the proxy\nshall be entitled to participate as a full voting member.\n(3) Any vacancy which may occur shall be filled in the same manner provided for the\nselection of the particular member for a full term. Vacancies shall be filled for the\nunexpired term only.\n(4) Membership on the board of trustees shall not be incompatible with any other office\nunless a constitutional incompatibility exists, and no member shall be subject to\nremoval from office, except upon conviction of a felony, or of a misdemeanor\ninvolving moral turpitude.\n(5) Board members who do not otherwise receive a salary or compensation from the\nState Treasury shall receive a per diem of one hundred dollars ($100) for each day\nthey are in session or on official duty, and they sha ll be reimbursed for their actual\nand necessary expenses in accordance with state administrative regulations and\nstandards applicable to state employees.\n(6) The board shall meet at least once in each quarter of the year, and may meet in\nspecial session upon the call of the chair. It shall elect a chair and a vice chair. A\nmajority of the members shall constitute a quorum, and all actions taken by the\nboard shall be by affirmative vote of a majority of the members present.\n(7) The authority shall be attached to the Personnel Cabinet for administrative purposes\nonly. The board may take but is not limited to the following actions:\n(a) Appoint such employees as it deems necessary and fix the compensation for\nall employees of the board, subject to the approval of the secretary. The\nauthority shall be headed by an executive director who shall be appointed by\nthe board of trustees of the authority without the limitatio ns imposed by KRS\n12.040 and KRS Chapter 18A. The executive director of the authority and\nemployees appointed by the board shall serve at its will and pleasure. All\nother staff of the authority shall be employed under KRS 18A.005 to\n18A.200;\n(b) Require such employees as it thinks proper to execute bonds for the faithful\nperformance of their duties;\n(c) Establish a system of accounting;\n(d) Contract for such services as may be necessary for the operation or\nadministration of deferred compensation plans auth orized in KRS 18A.230 to\n18A.275, including annual audits;\n(e) Do all things, take all actions, and adopt plans for participation consistent with\nfederal law and with the provisions of KRS 18A.230 to 18A.275, including\nbut not limited to:\n1. Amending the b oard's plan for the Kentucky Public Employees 401(k)\nDeferred Compensation Plan or the Kentucky Employees 457 Deferred\nCompensation Plan, or both such plans, to adopt, maintain, and\nterminate a deemed IRA program under Internal Revenue Code Section\n408;\n2. Amending the board's plan for the Kentucky Public Employees 401(k)\nDeferred Compensation Plan to adopt, maintain, and terminate a\nqualified Roth contribution program under Internal Revenue Code\nSection 402A; and\n3. Adopting, maintaining, and terminating a n Internal Revenue Code\nSection 403(b) plan for qualified employees;\n(f) Contract with persons or companies duly licensed by the State of Kentucky\nand applicable federal regulatory agencies, at the cost of the trust fund or\nindividual participant accounts,  to provide investment advice and financial\nplanning to participants in the plans, with respect to their selection of\ninvestments. The board may promulgate administrative regulations for\nprovision of financial planning to participants in the plans;\n(g) Contract with companies duly licensed by the State of Kentucky and\napplicable federal regulatory agencies to provide self -directed brokerage\naccounts to participants for their individual selection of plan account\ninvestments. Such contracts with self -directed brokerage account vendors\nshall be exempt from KRS Chapters 45 and 45A. The board may promulgate\nadministrative regulations in accordance with KRS Chapter 13A for the\nprovision of self-directed brokerage accounts to participants; and\n(h) Promulgate administrative regulations in accordance with KRS Chapter 13A,\nprovided the regulations are not inconsistent with KRS 18A.230 to 18A.275,\nnecessary or proper in order to carry out the provisions of this section and\nduties authorized by KRS 18A.230 to 18A.275.\n(8) The Attorney General, or an assistant designated by him or her, may act as legal\nadviser and attorney for the board. The board may also appoint legal counsel in\naccordance with KRS Chapter 12.\n(9) The board shall prepare an annual financial report showin g all receipts,\ndisbursements, assets, and liabilities and shall submit a copy to the Governor and\nthe Legislative Research Commission. All board meetings and records shall be open\nfor inspection by the public.\n(10) Notwithstanding any other evidence of le gislative intent, it is hereby declared to be\nthe controlling legislative intent that the provisions of KRS 18A.230 to 18A.275\nshall conform with federal statutes or regulations and meet the qualification\nrequirements under 26 U.S.C. secs. 401(a) and 457(b ), applicable federal\nregulations, and other published guidance, and the board shall have the authority to\npromulgate administrative regulations, with retroactive effect if required under\nfederal law, to conform the Kentucky Public Employees 401(k) Deferre d\nCompensation Plan and the Kentucky Employees 457(b) Deferred Compensation\nPlan with federal statutes and regulations and to meet the qualification requirements\nunder 26 U.S.C. secs. 401(a) and 457(b).","path":["KRS Chapter 18A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56493","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:48:40Z","sha256":"5cc095499b3149ecdeb8be642c45ea1514f5bc699b7ea7e54c55125c857f03a6","source_id":"us-ky","stale":false,"prev":"us-ky/krs-18a.240","next":"us-ky/krs-18a.250"},"notice":"GroundRules: Original legal text. Not legal advice."}