{"data":{"id":"us-ky/krs-61.505","jurisdiction":"us-ky","citation":"KRS 61.505","heading":"Kentucky Public Pensions Authority -- Purpose -- Membership, vacancies,","body":"compensation, and meetings -- Authority granted powers and privileges of\ncorporation -- Executive director, chief auditor, and employees -- Expenses --\nAuthorization of administrative expenses -- Duties of members.\n(1) There is created an eight (8) member Kentucky Public Pensions Authority whose\npurpose shall be to administer and operate:\n(a) A single personnel system for the staffing needs of the Kentucky Retirement\nSystems and the County Employees Retirement System;\n(b) A system of accounting that is developed by the Authority for the Kentucky\nRetirement Systems and the County Employees Retirement System;\n(c) Day-to-day administrative needs of the Kentucky Retirement S ystems and the\nCounty Employees Retirement System, including but not limited to:\n1. Benefit counseling and administration;\n2. Information technology and services, including a centralized website for\nthe Authority, the Kentucky Retirement Systems, and the C ounty\nEmployees Retirement System;\n3. Legal services;\n4. Employer reporting and compliance;\n5. Processing and distribution of benefit payments, and other financial,\ninvestment administration, and accounting duties as directed by the\nKentucky Retirement Systems board of trustees or the County\nEmployees Retirement System board of trustees;\n6. All admi nistrative actions, orders, decisions, and determinations\nnecessary to carry out benefit functions required by the Kentucky\nRetirement Systems and the County Employees Retirement System\nstatutes, including but not limited to administration of reduced and\nunreduced retirement benefits, disability retirement, reemployment after\nretirement, service purchases, computation of sick -leave credit costs,\ncorrection of system records, qualified domestic relations orders, and\npension spiking determinations; and\n7. Completing and compiling financial data and reports;\n(d) Any jointly held assets used for the administration of the Kentucky\nRetirement Systems and the County Employees Retirement System, including\nbut not limited to real estate, office space, equipment, and supplies;\n(e) The hiring of a single actuarial consulting firm who shall serve both the\nKentucky Retirement Systems and the County Employees Retirement System;\n(f) The hiring of a single external certified public accountant who shall perform\naudits for bot h the Kentucky Retirement Systems and the County Employees\nRetirement System;\n(g) The promulgation of administrative regulations as an authority or on behalf of\nthe Kentucky Retirement Systems and the County Employees Retirement\nSystem, individually or col lectively, provided such regulations are not\ninconsistent with the provisions of this section and KRS 16.505 to 16.652,\n61.505, 61.510 to 61.705, and 78.510 to 78.852, necessary or proper in order\nto carry out the provisions of this section and duties auth orized by KRS\n16.505 to 16.652 and 61.510 to 61.705;\n(h) A system of contracting management for administrative services; and\n(i) Other tasks or duties as directed solely or jointly by the boards of the\nKentucky Retirement Systems or the County Employees Retirement System.\n(2) The eight (8) member Kentucky Public Pensions Authority shall be composed of\nthe following individuals:\n(a) The chair of the Kentucky Retirement Systems board of trustees;\n(b) The chair of the County Employees Retirement System board of trustees;\n(c) The investment committee chair of the Kentucky Retirement Systems board\nof trustees, unless the investment committee chair is also the chair of the\nboard of trustees in which case the chair of the Kentucky Retirement Systems\nshall appoint an individual who serves on the investment committee;\n(d) The investment committee chair of the County Employees Retirement System\nboard of trustees, unless the investment committee chair is also the chair of\nthe County Employees Retirement System board of trustees in which case the\nchair of the County Employees Retirement System shall appoint an individual\nwho serves on the investment committee;\n(e) Two additional (2) trustees of the Kentucky Retirement Systems board of\ntrustees selected by the chair of the  Kentucky Retirement Systems board of\ntrustees of which one (1) shall be a trustee who was elected by the\nmembership of one (1) of the systems administered by Kentucky Retirement\nSystems and one (1) shall be a trustee of Kentucky Retirement Systems who\nwas appointed by the Governor; and\n(f) Two additional (2) trustees of the County Employees Retirement System\nboard of trustees selected by the chair of the County Employees Retirement\nSystem board of trustees of which one (1) shall be a trustee who was electe d\nby the membership of the County Employees Retirement System and one (1)\nshall be a trustee of the County Employees Retirement System who was\nappointed by the Governor.\n(3) The Kentucky Public Pensions Authority is hereby granted the powers and\nprivileges of a corporation, including but not limited to the following powers:\n(a) To sue and be sued in its corporate name;\n(b) To make bylaws not inconsistent with the law and in accordance with its\nduties as provided by this section;\n(c) To conduct the business and promote the purposes for which it was formed;\n(d) To carry out the obligations of the Authority subject to KRS Chapters 45,\n45A, 56, and 57;\n(e) To purchase fiduciary liability insurance; and\n(f) The Kentucky Public Pensions Authority shall reimburse a ny Authority\nmember, officer, or employee for any legal expense resulting from a civil\naction arising out of the performance of his or her official duties. The hourly\nrate of reimbursement for any contract for legal services under this paragraph\nshall not exceed the maximum hourly rate provided in the Legal Services\nDuties and Maximum Rate Schedule promulgated by the Government\nContract Review Committee established pursuant to KRS 45A.705, unless a\nhigher rate is specifically approved by the secretary of th e Finance and\nAdministration Cabinet or his or her designee.\n(4) Any vacancy which may occur in an appointed position on the Kentucky Public\nPensions Authority shall be filled in the same manner which provides for the\nselection of the particular member of the Authority. No person shall serve in more\nthan one (1) position as a member of the Authority and if a person holds more than\none (1) position as a member of the Authority, he or she shall resign a position.\n(5) (a) Membership on the Authority shall not be incompatible with any other office\nunless a constitutional incompatibility exists. No Authority member shall\nserve in more than one (1) position as a member of the Authority.\n(b) An Authority member shall be removed from office upon conviction of a\nfelony or for a finding of a violation of any provision of KRS 11A.020 or\n11A.040 by a court of competent jurisdiction.\n(c) A current or former employee of the County Employees Retiremen t System,\nKentucky Retirement Systems, or the Kentucky Public Pensions Authority\nshall not be eligible to serve as a member of the Authority.\n(6) Kentucky Public Pensions Authority members who do not otherwise receive a\nsalary from the State Treasury shall  receive a per diem of eighty dollars ($80) for\neach day they are in session or on official duty, and they shall be reimbursed for\ntheir actual and necessary expenses in accordance with state administrative\nregulations and standards, except that the member s shall not receive a per diem or\nreceive reimbursements on the same day they receive a per diem or reimbursements\nfor service to the Kentucky Retirement Systems board of trustees or County\nEmployees Retirement Systems board of trustees.\n(7) (a) The Authority shall meet at least once in each quarter of the year and may\nmeet in special session upon the call of the chair or the executive director of\nthe Authority.\n(b) The Authority shall elect a chair and a vice chair. The chair shall not serve\nmore than four  (4) consecutive years as chair or vice chair of the Authority.\nThe vice chair shall not serve more than four (4) consecutive years as chair or\nvice chair of the Authority. A member who has served four (4) consecutive\nyears as chair or vice chair of the Au thority may be elected chair or vice chair\nof the Authority after an absence of two (2) years from the positions.\n(c) A majority of the Authority members shall constitute a quorum and all actions\ntaken by the Authority shall be by affirmative vote of a maj ority of the\nAuthority members present.\n(d) The Authority shall post on the Authority's website and shall make available\nto the public:\n1. All meeting notices and agendas of the Authority. Notices and agendas\nshall be posted to the Authority's website at least seventy-two (72) hours\nin advance of the Authority's meetings, except in the case of special or\nemergency meetings as provided by KRS 61.823;\n2. All Authority minutes or other materials that require adoption or\nratification by the Authority. The items  listed in this subparagraph shall\nbe posted within three (3) business days of adoption or ratification of the\nAuthority;\n3. All bylaws, policies, or procedures adopted or ratified by the Authority;\nand\n4. A listing of the members of the Authority and memb ership on each\ncommittee established by the Authority.\n(8) (a) The Kentucky Public Pensions Authority shall appoint or contract for the\nservices of an executive director and a chief auditor and fix the compensation\nand other terms of employment for these p ositions without limitation of the\nprovisions of KRS Chapter 18A, 45A, and KRS 64.640. The executive\ndirector shall be the chief administrative officer of the Authority, the\nKentucky Retirement Systems board of trustees, and the County Employees\nRetirement System board of trustees. The chief auditor shall report directly to\nthe Kentucky Public Pensions Authority members to perform internal audit\nfunctions as directed by the Authority. The executive director and chief\nauditor shall work cooperatively with th e chief executive officers of the\nKentucky Retirement Systems and the County Employees Retirement System.\nThe Authority shall annually conduct a performance evaluation of the\nexecutive director and chief auditor.\n(b) The Kentucky Public Pensions Authority shall authorize the executive\ndirector, or the chief auditor in the case of employees under the direct\nsupervision of the chief auditor, to appoint the employees deemed necessary\nto transact the duties of the Authority for the purposes outlined in subsecti on\n(1) of this section. After April 14, 2022, approval by the Authority shall be\nrequired for a petition to the secretary of the Personnel Cabinet for the\ncreation of any new unclassified position pursuant to KRS 18A.115(1)(e), (g),\n(h), and (i).\n(c) Effective April 1, 2021, the Kentucky Public Pensions Authority shall assume\nresponsibility of administering the staff of the Kentucky Retirement Systems\nin order to provide the services established by this section.\n(d) 1. All employees of the Kentucky Public P ensions Authority, except for\nthe executive director, the chief auditor, and no more than six (6)\nunclassified employees of the Office of Investments employed pursuant\nto KRS 18A.115(1)(e), (g), (h), and (i), shall be subject to the state\npersonnel system established pursuant to KRS 18A.005 to 18A.204 and\nshall have their salaries determined by the secretary of the Personnel\nCabinet.\n2. The employees exempted from the classified service under this\nparagraph shall not be subject to the salary limitations spe cified in KRS\n64.640(2) and (3).\n3. The Kentucky Public Pensions Authority shall adopt a written salary and\nclassification plan fixing a range of compensation and written terms of\nemployment for any of the unclassified employees of the Office of\nInvestments it authorizes under this paragraph. The Authority shall\nauthorize the executive director to appoint up to six (6) unclassified\nemployees of the Office of Investments subject to the compensation\nranges and terms of employment the Authority has established . The\nAuthority may amend the written salary and classification plan adopted\nunder this paragraph at any time.\n(e) The Authority shall annually review, approve, and submit a report to the\nPublic Pension Oversight Board detailing the number of employees of the\nAuthority, the salary paid to each employee, and the change in the salaries of\neach individual employed by the Authority over the prior year.\n(f) The Authority shall require the executive director and the employees as it\nthinks proper to execute bonds for the faithful performance of their duties\nnotwithstanding the limitations of KRS Chapter 62.\n(g) Notwithstanding any other provision of statute to the contrary, including but\nnot limited to any provision of KRS Chapter 12, the Governor shall have no\nauthority to change any provision of this section by executive order or action,\nincluding but not limited to reorganizing, replacing, amending, or abolishing\nthe membership of the Kentucky Public Pensions Authority.\n(9) All employees of the Authority shall se rve during its will and pleasure.\nNotwithstanding any statute to the contrary, employees shall not be considered\nlegislative agents under KRS 6.611.\n(10) The Attorney General, or an assistant designated by him or her, may attend each\nmeeting of the Authori ty and may receive the agenda, board minutes, and other\ninformation distributed to Authority members upon request. The Attorney General\nmay act as legal adviser and attorney for the Authority, and the Authority may\ncontract for legal services, notwithstand ing the limitations of KRS Chapter 12 or\n13B.\n(11) (a) 1. All expenses incurred by or on behalf of the Kentucky Public Pensions\nAuthority shall be paid by the systems administered by the Kentucky\nRetirement Systems or the County Employees Retirement System  and\nshall be prorated, assigned, or allocated to each system as determined by\nKentucky Public Pensions Authority.\n2. Until June 30, 2024, any additional initial costs determined by the\nAuthority to be attributable solely to establishing a separate County\nEmployees Retirement System board and the Kentucky Public Pensions\nAuthority as provided by this section and KRS 78.78 2 shall be paid by\nthe County Employees Retirement System. Until June 30, 2024, any\nadditional ongoing annual administrative and investment expenses that\noccur after the establishment of a separate County Employees\nRetirement System board and the Kentucky Public Pensions Authority\nthat are determined by the Authority to be a direct result of establishing\na separate County Employees Retirement System board and the\nKentucky Public Pensions Authority shall be paid by the County\nEmployees Retirement System. Beginning on and after July 1, 2024, any\nannual administrative and investment expenses shall be prorated,\nassigned, or allocated to each system as determined by the Kentucky\nPublic Pensions Authority as provided by subparagraph 1. of this\nparagraph but withou t attribution to the establishment of a separate\nCounty Employees Retirement System board and the Kentucky Public\nPensions Authority.\n3. In order to evaluate the results of establishing a separate County\nEmployees Retirement System board and the Kentucky P ublic Pensions\nAuthority, on or before November 15, 2022, and on or before November\n15 following the close of each successive fiscal year, the Kentucky\nPublic Pensions Authority shall report to the Public Pension Oversight\nBoard the annual administrative a nd investment expenses of the\nKentucky Retirement Systems and the County Employees Retirement\nSystem. The report shall include but not be limited to the process or\nmanner the Authority used to prorate, assign, or allocate to each system\nits share of the ex penses, the amount of expenses prorated, assigned, or\nallocated to each system itemized by category, and any efforts by the\nsystems or the Authority to reduce administrative costs and staffing\nneeds.\n(b) Any other statute to the contrary notwithstanding, a uthorization for all\nexpenditures relating to the administrative operations of the Kentucky Public\nPensions Authority, the Kentucky Retirement Systems, and the County\nEmployees Retirement System shall be contained in the biennial budget unit\nrequest, branch budget recommendation, and the financial plan adopted by the\nGeneral Assembly pursuant to KRS Chapter 48. The Kentucky Public\nPensions Authority shall approve the biennial budget unit request prior to its\nsubmission by the Authority. The request from the  Kentucky Public Pensions\nAuthority shall include any specific administrative expenses requested by the\nKentucky Retirement Systems board of trustees or the County Employees\nRetirement System board of trustees pursuant to KRS 61.645(13) or\n78.782(13), as a pplicable, that are not otherwise expenses specified by\nparagraph (a) of this subsection.\n(12) (a) An Authority member shall discharge his or her duties as a member of the\nAuthority, including his or her duties as a member of a committee of the\nAuthority:\n1. In good faith;\n2. On an informed basis; and\n3. In a manner he or she honestly believes to be in the best interest of the\nCounty Employees Retirement System and the Kentucky Retirement\nSystems, as applicable.\n(b) An Authority member discharges his or her  duties on an informed basis if,\nwhen he or she makes an inquiry into the business and affairs of the\nAuthority, system, or systems or into a particular action to be taken or\ndecision to be made, he or she exercises the care an ordinary prudent person\nin a like position would exercise under similar circumstances.\n(c) In discharging his or her duties, an Authority member may rely on\ninformation, opinions, reports, or statements, including financial statements\nand other financial data, if prepared or presented by:\n1. One (1) or more officers or employees of the Authority whom the\nAuthority member honestly believes to be reliable and competent in the\nmatters presented;\n2. Legal counsel, public accountants, actuaries, or other persons as to\nmatters the Authority  member honestly believes are within the person's\nprofessional or expert competence; or\n3. A committee of the Authority of which he or she is not a member if the\nAuthority member honestly believes the committee merits confidence.\n(d) An Authority member sh all not be considered as acting in good faith if he or\nshe has knowledge concerning the matter in question that makes reliance\notherwise permitted by paragraph (c) of this subsection unwarranted.\n(e) Any action taken as a member of the Authority, or any fa ilure to take any\naction as an Authority member, shall not be the basis for monetary damages\nor injunctive relief unless:\n1. The Authority member has breached or failed to perform the duties of\nthe member's office in compliance with this section; and\n2. In the case of an action for monetary damages, the breach or failure to\nperform constitutes willful misconduct or wanton or reckless disregard\nfor human rights, safety, or property.\n(f) A person bringing an action for monetary damages under this section shal l\nhave the burden of proving by clear and convincing evidence the provisions of\nparagraph (e)1. and 2. of this subsection, and the burden of proving that the\nbreach or failure to perform was the legal cause of damages suffered by the\nKentucky Retirement Sy stems or County Employees Retirement System, as\napplicable.\n(g) In discharging his or her administrative duties under this section, an Authority\nmember shall strive to administer the systems in an efficient and cost -\neffective manner for the taxpayers of th e Commonwealth of Kentucky and\nshall take all actions available under the law to contain costs for the trusts,\nincluding costs for participating employers, members, and retirees.","path":["KRS Chapter 61"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=54845","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:15Z","sha256":"902a01d71f8837da91d263ec4e28061fe5110057ad87dc98d913286977ef66e5","source_id":"us-ky","stale":false,"prev":"us-ky/krs-61.500","next":"us-ky/krs-61.510"},"notice":"GroundRules: Original legal text. Not legal advice."}