{"data":{"id":"us-ky/krs-21.402","jurisdiction":"us-ky","citation":"KRS 21.402","heading":"Hybrid cash balance plan for certain members of Legislators' Retirement","body":"Plan and Judicial Retirement Plan -- Member contributions and employer pay\ncredits -- Interest credits -- Termination of employment -- Options upon\nretirement -- Individual me mbers' accounts established by board of Judicial\nForm Retirement System.\n(1) A member of the Legislators' Retirement Plan or the Judicial Retirement Plan,\nwhose participation in the Legislators' Retirement Plan or the Judicial Retirement\nPlan begins on or after January 1, 2014, or a member making an election pursuant to\nKRS 21.374, shall receive the retirement benefits provided by this section in lieu of\nthe retirement benefits provided under KRS 6.520 and 21.400. The retirement\nbenefit provided by this section shall be known as the hybrid cash balance plan and\nshall operate as another benefit tier within the Legislators' Retirement Plan and the\nJudicial Retirement Plan.\n(2) The hybrid cash balance plan shall provide a retirement benefit based upon the\nmember's accumulated account balance, which shall include:\n(a) Contributions made by the member as provided by KRS 6.500 to 6.577 and\n21.345 to 21.580, except for employee contributions prescribed by KRS\n6.505(1)(d)2.b. and 21.360(1)(a)3.b.;\n(b) An employer pay credit of four percent (4%) of the creditable compensation\nearned by the employee for each month the employee is contributing to the\nhybrid cash balance plan provided by this section; and\n(c) Interest credits added annually to the member's accumulated  account balance\nas provided by this section.\n(3) (a) Member contributions and employer pay credits as provided by subsection\n(2)(a) and (b) of this section shall be credited to the member's account\nmonthly as contributions are reported and posted to the plan.\n(b) Interest credits, as provided by subsection (2)(c) of this section, shall be\ncredited to the member's account annually on June 30 of each fiscal year, as\ndetermined by subsection (4) of this section.\n(4) (a) On June 30 of each fiscal year, the pla n shall determine if the member\ncontributed to the hybrid cash balance plan during the fiscal year.\n(b) If the member contributed to the hybrid cash balance plan during the fiscal\nyear, the interest credit added to the member's account for that fiscal year shall\nbe determined by multiplying the member's accumulated account balance on\nJune 30 of the preceding fiscal year by a percentage increase equal to:\n1. Four percent (4%); plus\n2. Seventy-five percent (75%) of the plan's geometric average net\ninvestment return in excess of a four percent (4%) rate of return.\n(c) If the member did not contribute to the hybrid cash balance plan during the\nfiscal year, the in terest credit added to the member's account for that fiscal\nyear shall be determined by multiplying the member's accumulated account\nbalance on June 30 of the preceding fiscal year by four percent (4%).\n(d) For purposes of this subsection, \"plan's geometri c average net investment\nreturn\":\n1. Means the annual average geometric investment return, net of\nadministrative and investment fees and expenses, over the last five (5)\nfiscal years as of the date the interest is credited to the member's\naccount; and\n2. Shall be expressed as a percentage and based upon the plan in which the\nmember has an account.\n(5) (a) Upon termination of employment, a member who has less than five (5) years\nof service credited under the Legislators' Retirement Plan or the Judicial\nRetirement Plan, who elects to take a refund of his or her accumulated account\nbalance as provided by KRS 21.460, shall forfeit the accumulated employer\ncredit, and shall only receive a refund of his or her accumulated contributions.\n(b) Upon termination of employment, a member who has five (5) or more years of\nservice credited under the Legislators' Retirement Plan or the Judicial\nRetirement Plan, who elects to take a refund of his or her accumulated account\nbalance as provided by KRS 21.460, shall receive a fu ll refund of his or her\naccumulated account balance.\n(6) A member participating in the hybrid cash balance plan provided by this section\nmay retire:\n(a) Upon reaching normal retirement age, provided he or she has earned five (5)\nor more years of service credited under the Legislators' Retirement Plan or the\nJudicial Retirement Plan, or another state-administered retirement system; or\n(b) If the member is at least age fifty -seven (57) and has an age and years of\nservice total of at least eighty -seven (87) ye ars. The years of service used to\ndetermine eligibility for retirement under this paragraph shall only include\nyears of service credited under the Legislators' Retirement Plan or the Judicial\nRetirement Plan, or another state-administered retirement system.\n(7) A member eligible to retire under subsection (6) of this section may elect to:\n(a) Receive a monthly retirement allowance payable for life by having his or her\naccumulated account balance annuitized by the retirement plan in accordance\nwith the actua rial assumptions and actuarial methods adopted by the board\nand in effect on the member's retirement date;\n(b) Receive the actuarial equivalent of his or her retirement allowance calculated\nunder paragraph (a) of this subsection payable under one (1) of th e options set\nforth in KRS 21.420(8)(b); or\n(c) Take a refund of his or her accumulated account balance as provided by KRS\n21.460.\n(8) The board of the Judicial Form Retirement System shall establish individual\nmembers' accounts for each member participating in the hybrid cash balance plan as\nprovided by this section. The Judicial Form Retirement System may promulgate\nadministrative regulations in accordance with KRS Chapter 13A to administer the\nprovisions of this section.\n(9) The provisions of this sectio n shall not apply to members who began participating\nin the Legislators' Retirement Plan or the Judicial Retirement Plan prior to January\n1, 2014, except for those members who make an election pursuant to KRS 21.374.","path":["KRS Chapter 21"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=52636","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:48:41Z","sha256":"41344b4efc014dae142bb1e17c57f247d8f275c09983c87e8bd2e8c3d9e9183b","source_id":"us-ky","stale":false,"prev":"us-ky/krs-21.400","next":"us-ky/krs-21.405"},"notice":"GroundRules: Original legal text. Not legal advice."}