{"data":{"id":"us-ky/krs-61.597","jurisdiction":"us-ky","citation":"KRS 61.597","heading":"Hybrid cash balance plan for certain members of Kentucky Employees","body":"Retirement System in nonhazardous duty positions -- Member contributions\nand employer pay credits -- Interest credits -- Termination of employment --\nOptions upon retirement.\n(1) A member of the Kentucky Employees Retirement System who is participating in a\nnonhazardous position, whose participation in the systems begins on or after\nJanuary 1, 2014, and those members making an election pursuant to KRS 61.5955,\nshall receive the reti rement benefits provided by this section in lieu of the\nretirement benefits provided under KRS 61.559 and 61.595. The retirement benefit\nprovided by this section shall be known as the hybrid cash balance plan and shall\noperate as another benefit tier within the Kentucky Employees Retirement System.\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 16.505 to 16.6 52 and\n61.510 to 61.705, except for employee contributions prescribed by KRS\n61.702(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 s ection shall be credited to the member's account\nmonthly as contributions are reported and posted to the system in accordance\nwith KRS 61.675.\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 system shall determine if the member\ncontributed to the hybrid cash balance plan or the County Employees\nRetirement System during the fiscal year.\n(b) If the member contributed to the hybrid cash balance plan or the County\nEmployees Retirement System during the fiscal year, the interest credit added\nto the member's account for that fiscal year shall be determined by\nmultiplying the member's accumulated account balance on June 30 of the\npreceding fiscal year by a percentage increase equal to:\n1. Four percent (4%); plus\n2. Seventy-five percent (75%) of the system's geometric average\ninvestment return in excess of the four percent (4%) rate of return.\n(c) If the member did not contribute to the hybrid cash balance plan or the\nCounty Employees Retirement System during the fiscal ye ar, the interest\ncredit added to the member's account for that fiscal year shall be determined\nby multiplying the member's accumulated account balance on June 30 of the\npreceding fiscal year by a percentage increase equal to four percent (4%).\n(d) For purposes of this subsection, \"system's geometric 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 system in which\nthe member has an account.\n(e) No employer pay credits or interest credits shall be provided to a member who\nhas taken a refund of contributions  as provided by KRS 61.625 or who has\nretired and annuitized his or her accumulated account balance as prescribed\nby this section.\n(5) (a) Upon termination of employment, a member who has less than five (5) years\nof service credited under KRS 16.543(1), 61 .543(1), and 78.615(1), who\nelects to take a refund of his or her accumulated account balance as provided\nby KRS 61.625, shall forfeit the accumulated employer credit, and shall only\nreceive a refund of his or her accumulated contributions.\n(b) Upon termination of employment, a member who has five (5) or more years\nof service credited under KRS 16.543(1), 61.543(1), and 78.615(1), who\nelects to take a refund of his or her accumulated account balance as provided\nby KRS 61.625, shall receive a full refund of his or her accumulated account\nbalance.\n(6) A member participating in the hybrid cash balance plan provided by this section\nmay retire:\n(a) At his or her normal retirement date, provided he or she has earned five (5) or\nmore years of service credited under  KRS 16.543(1), 61.543(1), 78.615(1), or\nanother 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) years. The years of service used to\ndetermine eligibility for retirement under this paragraph shall only include\nyears of service credited under KRS 16.543(1), 61.543(1), 78.615(1), or\nanother 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 systems in\naccordance with the actuarial assumptions and actuarial methods adopted by\nthe board and 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 the options set\nforth in KRS 61.635, except for the option provided by KRS 61.635(11); or\n(c) Take a refund of his or her account balance as provided by KRS 61.625.\n(8) The provisions of this section shall not apply to members who began participating\nin the Kentucky Employees Retirement System prior to January 1, 2014, exce pt for\nthose members who make an election pursuant to KRS 61.5955.","path":["KRS Chapter 61"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=50831","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:15Z","sha256":"0fa874793cd3ed049c28282205521327862e0d6015930b88eeeeb34389c9c8d0","source_id":"us-ky","stale":false,"prev":"us-ky/krs-61.596","next":"us-ky/krs-61.598"},"notice":"GroundRules: Original legal text. Not legal advice."}