{"data":{"id":"us-ky/krs-21.440","jurisdiction":"us-ky","citation":"KRS 21.440","heading":"Duties of investment committee -- Duties of board -- Actuarial valuations,","body":"investigations, and analyses -- Audit.\n(1) (a) The investment committee for the judicial retirement fund shall at least once\nin every two (2) year period procure an actuarial valuation of the judicial\nretirement fund. The valuation shall, at a minimum, include:\n1. A description of the actuarial assumptions used in the actuarial\nvaluation, which shall be reasonably related to the experience of the\nfund and represent the actuary's best estimate of anticipated experience;\n2. A description of any funding methods utilized or required by state law in\nthe development of the actuarial valuation results;\n3. A description of any changes in actuarial assumptions and methods from\nthe previous year's actuarial valuation;\n4. The actuarially recommended contribution rate for employers for the\nupcoming budget periods;\n5. A thirty (30) year projection of the funding levels, unfunded liabilities,\nand actuarially recommended contributi on rates for employers based\nupon the actuarial assumptions, funding methods, and experience of the\nsystem as of the valuation date;\n6. A sensitivity analysis that evaluates the impact of changes in plan\nassumptions, including but not limited to the inves tment return\nassumption, payroll growth assumption, and medical inflation\nassumptions, on employer contribution rates, funding levels, and\nunfunded liabilities; and\n7. An actuarial investigation to be made of all of the economic experience\nunder the plans,  including but not limited to the inflation rate and\ninvestment return assumptions, relative to the economic assumptions\nand funding methods previously adopted by the board. The actuarial\ninvestigation shall include at a minimum a summary of the changes in\nactuarial assumptions and funding methods recommended in the\ninvestigation and the projected impact of the recommended changes on\nfunding levels, unfunded liabilities, and actuarially recommended\ncontribution rates for employers over a thirty (30) year period.\n(b) At least once in each five (5) year period, the board of trustees of the Judicial\nForm Retirement System shall cause an actuarial investigation to be made of\nall the relevant demographic experience under the retirement plan, including\nbut not lim ited to mortality tables, withdrawal rates, and retirement rate\nassumptions, relative to the demographic actuarial assumptions previously\nadopted by the board. The actuarial investigation shall include at a minimum a\nsummary of the changes in actuarial ass umptions recommended in the\ninvestigation and the projected impact of the recommended changes on\nfunding levels, unfunded liabilities, and actuarially recommended contribution\nrates for employers over a thirty (30) year period.\n(c) Pursuant to the investig ation, the board shall from time to time revise the\nactuarial tables previously adopted by the board and shall thereupon revise the\nbases of the rates of contributions required under KRS 21.345 to 21.580.\n(d) For any change in actuarial assumptions, fundin g methods, retiree health\ninsurance premiums and subsidies, or any other decisions made by the board\nthat impact system liabilities and actuarially recommended contribution rates\nfor employers and that are not made in conjunction with the actuarial\ninvestigations required by paragraphs (a)7. and (b) of this subsection, an\nactuarial analysis shall be completed showing the projected impact of the\nchanges on funding levels, unfunded liabilities, and actuarially recommended\ncontribution rates for employers over a thirty (30) year period.\n(e) A copy of the valuation, each actuarial investigation, and any analysis required\nby this subsection shall be forwarded electronically to the Legislative\nResearch Commission within ten (10) days of receipt by the committee, a nd\nthe Legislative Research Commission shall distribute the information received\nto the committee staff and co -chairs of any committee that has jurisdiction\nover the Judicial Form Retirement System. The actuarial valuation required by\nparagraph (a) of this subsection shall be submitted no later than November 15\nfollowing the close of the fiscal year.\n(f) All the investigations and valuations shall be certified to the board by an\nactuary who shall be a fellow of the Conference of Consulting Actuaries or a\nmember of the American Academy of Actuaries.\n(2) (a) The board of trustees of the Judicial Form Retirem ent System shall annually\nprocure an audit of the system and each of the funds therein. The audit shall\nbe conducted in accordance with generally accepted auditing standards.\nExcept as provided by paragraph (b) of this subsection, the board may select\nan independent certified public accountant or the Auditor of Public Accounts\nto perform the audit. If the audit is performed by an independent certified\npublic accountant, the Auditor of Public Accounts shall not be required to\nperform an audit pursuant to KRS  43.050(2)(a), but may perform an audit at\nhis discretion. The board shall make copies of the audit required by this\nsection available for examination by any member or beneficiary in the office\nof the manager of the system and in such other places as may b e necessary to\nmake the audit available to all members and beneficiaries. A copy of the audit\nshall be sent to the Legislative Research Commission within ten (10) days of\nreceipt by the committee.\n(b) Once every five (5) years, the Auditor of Public Accoun ts shall perform the\naudit described by this subsection, and the system shall reimburse the Auditor\nof Public Accounts for all costs of the audit. The Auditor of Public Accounts\nshall determine which fiscal year during the five (5) year period the audit\nprescribed by this paragraph will be completed.","path":["KRS Chapter 21"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=52978","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:48:41Z","sha256":"1dbb00490af28356fd9a833a16acb0bea948eb19b0128fad4ee09105934a9b8f","source_id":"us-ky","stale":false,"prev":"us-ky/krs-21.430","next":"us-ky/krs-21.450"},"notice":"GroundRules: Original legal text. Not legal advice."}