{"data":{"id":"us-ky/krs-21.525","jurisdiction":"us-ky","citation":"KRS 21.525","heading":"Contributions by state -- Normal cost and actuarially accrued liability","body":"contributions -- Employer costs for hybrid cash balance plan.\n(1) The state, by appropriation to the Judicial Retirement Board, shall contribute\nannually to the Judicial  Retirement System an amount equal to the percent as\ncomputed under subsection (2)(a) of this section of the creditable compensation of\nactive members of the Judicial Retirement System, to be known as the \"normal cost\ncontribution,\" and an additional amoun t computed under subsection (2)(b) of this\nsection, to be known as the \"actuarially accrued liability contribution.\"\n(2) (a) The normal cost contribution shall be determined using:\n1. The entry age normal cost funding method;\n2. An asset smoothing method t hat smooths investment gains and losses\nover a five (5) year period; and\n3. Other funding methods and assumptions established by the board.\n(b) The actuarially accrued liability contribution shall be computed as follows:\n1. The total unfunded actuarially accrued liability shall be amortized over a\nclosed period of twenty (20) years beginning with the 2023 actuarial\nvaluation;\n2. Any increase or decrease in the unfunded actuarially accrued liability\noccurring after the completion of the 2023 actuarial valuation shall be\namortized over a closed period of twenty (20) years beginning with the\nactuarial valuation in which the increase or decrease in the unfunded\nactuarially accrued liability is recognized. An increase or decrease in the\nunfunded actuarially accrued liability may result from, but not be\nlimited to, legislative changes to benefits, changes in actuarial methods\nor assumptions, or actuarial gains or losses;\n3. If the annual valuation determines that the plan has surplus actuarial\nassets, the prior amortization bases established under subparagraph 2. of\nthis paragraph shall be eliminated, and one (1) base equal to the amount\nof surplus actuarial assets shall be established and amortized over an\nopen period of twenty (20) years; and\n4. The actuarially accrued liability contribution shall be determined by\nactuarial methods consistent with the methods prescribed for\ndetermining the normal cost contribution, except that beginning with the\n2023 actuarial valuation the level dollar amortization method shall be\nutilized.\n(c) The board shall adopt the actuarial assumptions that are to be used in making\nthe determinations.\n(3) The normal cost contribution and the actuarially accrued liability contribution for\neach fiscal biennium shall be determined on the basis of the actuarial valuation last\npreceding the commencement of the biennium.\n(4) Employer costs for the hybrid cash balance plan  as provided by KRS 21.402 shall\nbe incorporated into the employer contribution rate of the Legislators' Retirement\nPlan and the Judicial Retirement Plan as a new benefit tier within the plans.","path":["KRS Chapter 21"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=52628","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:48:41Z","sha256":"2fa8829fd5ac04965aaaa2c753bea00eda4c7f09f1cf3202b0e38acbc0e9224d","source_id":"us-ky","stale":false,"prev":"us-ky/krs-21.520","next":"us-ky/krs-21.530"},"notice":"GroundRules: Original legal text. Not legal advice."}