{"data":{"id":"us-ky/krs-61.701","jurisdiction":"us-ky","citation":"KRS 61.701","heading":"Kentucky  Retirement Systems  insurance trust fund -- Purpose  --","body":"Participation, regulation, and termination.\n(1) (a) There is hereby maintained a trust fund known as \"Kentucky Retirement\nSystems insurance trust fund.\"\n(b) Insurance trust fund assets shall be deemed  trust funds to be held and\napplied solely as provided in this section. Assets shall not be used for any\nother purpose and shall not be used to pay the claims of creditors or any\nindividual, person, or employer participating in the Kentucky Employees\nRetirement System, County Employees  Retirement System, or State\nPolice Retirement System.\n(c) The  trust fund has been established as a trust exempt from taxation\nunder 26 U.S.C. sec. 115.\n(2) The insurance trust fund has been created for the purpose of providing a trust\nseparate from the retirement funds. Trust fund assets are and shall be:\n(a) Dedicated for use for health benefits as provided in KRS  61.702 and\n78.5536 and as permitted under 26 U.S.C. secs. 105 and 106, to retired\nrecipients and employees of employers participating in the Kentucky\nEmployees  Retirement System, County Employees Retirement System,\nand State Police Retirement System, and to certain of their dependents or\nbeneficiaries, including but not limited to qualified beneficiaries as\ndescribed in 42 U.S.C. secs. 300bb-1 et seq.;\n(b) For recordkeeping purposes, segregated from the retirement trust funds\nestablished under KRS  16.510, 61.515, and 78.520 and attributable to\nmembers  of the State Police Retirement System,  the Kentucky\nEmployees  Retirement System, and the County Employees Retirement\nSystem, respectively, and when payment is made from the insurance trust\nfund:\n1. The  assets attributable to members  of the Kentucky Employees\nRetirement System shall not be used to pay health benefits for\nmembers  of the County Employees Retirement System or the State\nPolice Retirement System;\n2. The  assets attributable to members  of the County Employees\nRetirement System shall not be used to pay health benefits for\nmembers  of the Kentucky Employees  Retirement System or the\nState Police Retirement System; and\n3. The  assets attributable to members  of the State Police Retirement\nSystem  shall not be used to pay health benefits for members  of the\nKentucky Employees Retirement System or the County Employees\nRetirement System; and\n(c) For recordkeeping purposes for the assets attributable to the members  of\nthe Kentucky Employees Retirement System and the County Employees\nRetirement System, further segregated between members  in hazardous\npositions as defined in KRS  61.592 and  78.510 and  members  in\nnonhazardous positions as defined in KRS  61.510 and 78.510, and when\npayment is made from the insurance trust fund:\n1. The assets attributable to members  in hazardous positions shall not\nbe  used  to pay health benefits to members  in nonhazardous\npositions; and\n2. The assets attributable to members  in nonhazardous positions shall\nnot be used to pay health benefits to members  in hazardous\npositions.\n(3) The boards shall manage the assets of the insurance fund in the same manner\nin which the respective board administers its retirement funds, except that\nseparate accounting and  financial reporting shall be  maintained for the\ninsurance trust fund.\n(4) In addition to the requirements of subsection (2) of this section, the employers\nparticipating in the trust funds are limited to the Commonwealth,  political\nsubdivisions of the Commonwealth,  and entities whose income is exempt from\ntaxation under 26 U.S.C. sec. 115. No  other entity may  participate in the\ninsurance trust funds.\n(5) If the insurance trust fund is terminated, the assets in the insurance trust fund\nmay  revert, after the payment of all liabilities, to the participating employers as\ndetermined by the board of trustees.\n(6) The  respective board of trustees may adopt regulations and procedures and\ntake all action necessary and appropriate to provide that the income of the\ninsurance trust fund the board administers is exempt from taxation under Title\n26 of United States Code.\n(7) The  establishment of the Kentucky Retirement Systems insurance trust fund\nshall not diminish or expand  the rights of any recipients, employees, or\ndependents to health benefits.","path":["KRS Chapter 61"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=52269","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:16Z","sha256":"985be36f40549694a4b20f992707646e647b042d8374f08c98ef90a966779b52","source_id":"us-ky","stale":false,"prev":"us-ky/krs-61.700","next":"us-ky/krs-61.702"},"notice":"GroundRules: Original legal text. Not legal advice."}