{"data":{"id":"us-ky/krs-18a.250","jurisdiction":"us-ky","citation":"KRS 18A.250","heading":"Deferred compensation system -- Automatic enrollment of employees","body":"hired after July 1, 2019 -- Automatic enrollment of justices, judges, and\nmembers of the General Assembly elected or appointed after July 1, 2021.\n(1) The authority shall est ablish and maintain a deferred compensation plan for the\nemployees of the State of Kentucky. Participation in such plan shall be by\nagreement between such employees and the authority and shall provide for the\ndeferral of such amount of compensation as requ ested by the employee.\nParticipating employees must authorize that such deductions be made from their\nwages for the purpose of participation in such program.\n(2) The board is directed to develop and obtain, for the benefit of employees, a\nqualified employee plan that includes a qualified cash or deferred arrangement as\ndescribed in Section 401(k) of the Internal Revenue Code. The board is directed to\ndevelop a program for participants to borrow from their account or accounts in the\nplan. The plan shall be i n addition to other plans offered by the board, and shall be\noffered to employees upon receipt of appropriate approval of the Internal Revenue\nService or on January 1, 1985, whichever occurs later.\n(3) Notwithstanding the provisions of KRS 337.060, agreements to participate and plan\nelections made by employees pursuant to subsections (1) and (2) of this section may\nbe made in writing or by electronic record, signature, or contract as determined by\nthe authority and in accordance with the provisions of KRS 3 69.101 to 369.120.\nAgreements and elections, including but not limited to hardship withdrawal\napplications, loan applications, beneficiary designations, and withdrawal requests\nmade by participating employees under the plan, shall not be denied legal effec t or\nenforceability if made electronically to the extent permitted by the authority.\n(4) Notwithstanding KRS 337.060 and subsections (1) to (3) of this section:\n(a) Each full-time employee of the executive, judicial, and legislative branches of\nKentucky st ate government hired on or after July 1, 2019, shall be\nautomatically enrolled in the 401(k) plan established pursuant to this section,\nand the employee's compensation shall be reduced by thirty dollars ($30) per\nmonth and contributed as a pre-tax deferral to the 401(k) plan unless and until\nthe employee makes a deferral election under the terms of the 401(k) plan.\nFull-time status shall be determined by an employee's employer. The authority\nshall not be responsible or liable for any cost or liabilities res ulting from such\neligibility determinations made by an employer;\n(b) Each new member of the General Assembly elected or appointed on or after\nJuly 1, 2021, upon taking office, shall be automatically enrolled in the 401(k)\nplan established pursuant to this section, and the member's compensation shall\nbe reduced by thirty dollars ($30) per month and contributed as a pre -tax\ndeferral to the 401(k) plan unless and until the member makes a deferral\nelection under the terms of the 401(k) plan;\n(c) Each new justic e of the Supreme Court and each new regular judge of the\nCourt of Appeals, Circuit Court, District Court, and Family Court elected or\nappointed on or after July 1, 2021, upon taking office, shall be automatically\nenrolled in the 401(k) plan, and the justic e's or judge's compensation, as\napplicable, shall be reduced by thirty dollars ($30) per month and contributed\nas a pre-tax deferral to the 401(k) plan unless and until the justice or judge, as\napplicable, makes a deferral election under the terms of the 4 01(k) plan. This\nsection shall not apply to special judges appointed under KRS 26A.020; and\n(d) The automatic enrollment shall begin as of the employee's first paycheck or as\nsoon as administratively feasible thereafter. The board shall select a default\ninvestment fund or funds, pursuant to applicable federal law, for investment of\nan employee's deferrals into the employee's account until the employee makes\nan investment election. The board shall amend the 401(k) plan for the\nimplementation and administration of employee automatic enrollment, and the\nboard shall have authority to implement automatic enrollment consistent with\napplicable requirements of the Internal Revenue Code of 1986, as amended.\nThe board may promulgate administrative regulations for impl ementation of\nautomatic enrollment.","path":["KRS Chapter 18A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=51239","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:48:40Z","sha256":"93e468bd47f55bc1dfd0fe91c8ec75a5dd6b0954acbaf95226a911b0d778127e","source_id":"us-ky","stale":false,"prev":"us-ky/krs-18a.245","next":"us-ky/krs-18a.252"},"notice":"GroundRules: Original legal text. Not legal advice."}