{"data":{"id":"us-ky/krs-67a.320","jurisdiction":"us-ky","citation":"KRS 67A.320","heading":"Pension  fund -- Picked-up employee  contributions -- Repeal of","body":"ordinances  established for creation or maintenance  of pension fund --\nLiquidation and distribution of residual assets -- Report.\n(1) Any urban-county government in which there existed a municipality which had\nin effect an employees' pension fund prior to its merger into the urban-county\nform of government shall provide by comprehensive plan or ordinance for the\nmaintenance of the pension fund for those employees covered by the pension\nfund, and shall in each case provide for the payment to the pension fund in\neach month of the sum necessary to maintain the fund in accordance with the\nactuarial principles established by the actuarial studies described in this\nsection, and may assess monthly the amount or percent of the salary of the\nemployees  as determined on a fair actuarial basis, and in any case not in\nexcess of nine percent (9%) of the monthly salary of each employee unless a\nhigher rate was charged prior to the merger of governments, in which case the\nhigher rate may  be charged, the assessment  to be deducted from the\nemployees' salaries or picked up pursuant to subsection (2) of this section and\npaid in cash into the pension fund. Within six (6) months after the effective date\nof the urban-county form of government, or within six (6) months after June 21,\n1974, whichever shall be later, the trustees of the board shall, at the expense\nof the pension fund, provide for the performance of an actuarial valuation,\nwhich shall be completed within six (6) months thereafter, and shall describe\nthe amounts necessary to be contributed by the urban-county government or\nother sources to fund on an actuarially sound basis the benefits promised or\ndescribed in the fund, including any payments required to bring the fund to an\nactuarially sound position if it was not so at the time of the performance of the\nvaluation. The legislative body shall determine a reasonable period over which\nadditional funding, if any, shall be made, which period shall not exceed thirty\n(30) years. A similar valuation shall be arranged by the board at the cost of the\nurban-county government at least once in every three (3) year to five (5) year\nperiod thereafter as prescribed by KRS  65.156. If the fund created by this\nsection is extended to cover employees not described in the first sentence of\nthis section, the actuarial valuation shall determine the required payments\nnecessary to keep the expanded fund on an actuarially sound basis, and the\nurban-county government shall maintain the fund, and shall assess against the\nadditional covered employees the same  monthly contribution as required for\nother government employees.\n(2) The urban-county government shall, solely for the purpose of compliance with\nSection 414(h) of the United States Internal Revenue  Code, pick up the\nemployee  contributions required by this section for all compensation earned\nafter August 1, 1982, and the contributions picked up shall be treated as\nemployer contributions in determining tax treatment under the United States\nInternal Revenue  Code  and  KRS  141.010. However,  the urban-county\ngovernment shall continue to withhold federal and state income taxes based\nupon these contributions and hold them in a separate account until the Internal\nRevenue  Service or the federal courts rule that, pursuant to Section 414(h) of\nthe United States Internal Revenue  Code, these contributions shall not be\nincluded as gross income of the employee until such time as the contributions\nare distributed or made  available to the employee. The picked-up employee\ncontribution shall satisfy all obligations to the retirement fund satisfied prior to\nAugust 1, 1982, by the employee contribution, and the picked-up employee\ncontribution shall be in lieu of an employee contribution. The urban-county\ngovernment shall pay these picked-up employee contributions from the same\nsource of funds which is used to pay earnings to the employee. The employee\nshall have no option to receive the contributed amounts directly instead of\nhaving them paid by the urban-county government to the fund. Employee\ncontributions picked up after August 1, 1982, shall be treated for all purposes\nof this section in the same  manner  and to the same  extent as employee\ncontributions made prior to August 1, 1982.\n(3) The pick up of employee contributions by the employer shall not be construed\nto reduce the final salary or the average salary upon which the employee\nretirement benefit is based.\n(4) There is hereby created a board for the existing employees' pension fund and\ntrustees of that board. Trustees from the pension fund board shall consist of\nthe mayor, four (4) members  of the legislative body of the urban-county\ngovernment selected by the legislative body, the secretary of the Finance and\nAdministration Cabinet, the director of the Division of Personnel, and three (3)\ncivil service employees  or retirees to be elected to the board by those\nemployees  and  retirees covered by the employees' pension fund. If no\nemployee, retiree, or beneficiary is able or willing to serve on the board\nresulting in one (1) or more vacancies of the three (3) elected positions, any\nsuch  vacancy shall be filled by appointment by the mayor subject to the\napproval of the legislative body. In the event that there is no position in the\nurban-county  government  denominated  secretary of the Finance  and\nAdministration Cabinet and/or director of the Division of Personnel, the\nappointed office of the urban-county government exercising the functions most\nclosely resembling such office shall serve as trustee.\n(5) Temporary  employees appointed without examination shall not be compelled\nto contribute to any pension fund and shall not be eligible to benefits.\n(6) In no year shall the contribution by the urban-county government to the\npension fund, in the manner provided in this section, be less than the total\namount assessed upon and deducted from the salary of the employees.\n(7) The  trustees of the pension fund shall, at least once every three (3) months,\nreport in writing to the mayor the receipts, expenditures, and financial status of\nthe pension fund, stating the places of deposit of funds, or the character of\ninvestments made, and the mayor shall cause copies of the report to be posted\nin at least three (3) places where urban-county employees frequent and report.\n(8) If the urban-county government  issues the appropriate order allowing\nparticipation in  the  County  Employees  Retirement System  alternate\nparticipation plan pursuant to KRS  78.530(3) and 78.531(2), the urban-county\ngovernment shall have the right to use assets in the local pension fund, other\nthan assets necessary to pay benefits to the remaining active members  of the\nlocal pension fund and to retirees and their survivors as determined by\nactuarial valuation and other than assets payable to the County Employees\nRetirement System pursuant to KRS 78.531(2), to assist in the payment of both\nthe employee's and employer's costs of alternate participation pursuant to KRS\n78.530(3)(d).\n(9) If all liabilities to all individuals entitled to benefits from the employees' pension\nfund  have  been  satisfied, any  ordinances established for creation or\nmaintenance of the fund may  be repealed by the majority vote of the duly\nelected members  of the entire legislative body of the urban-county government.\nIf repealed, the fund's board of trustees shall, within sixty (60) days of repeal,\nproceed with the liquidation of any residual assets of the fund. All residual\nassets liquidated pursuant to this subsection shall be distributed by the board\nof trustees to the urban-county government's general fund which shall then\ncontribute the entire distribution received into the policemen's and firefighters'\nretirement fund as a supplemental contribution, so long as the return of assets\ncomplies with federal and state law governing the distribution of assets. The\nsupplemental  contribution provided to the policemen's and  firefighters'\nretirement fund under this subsection shall be in addition to the contributions\nrequired by KRS  67A.360 to 67A.690 and shall not be used to offset any other\ncontributions required to be paid to the fund under the provisions of KRS\n67A.360 to 67A.690. Within thirty (30) days following the distribution of residual\nassets, the board of trustees of the fund shall as its last act file a complete\nreport with the legislative body of the urban-county government of the actions\ntaken to terminate the fund and liquidate residual assets of the fund. Upon\ncompletion of the provisions specified by this subsection, the provisions of KRS\n67A.320 to 67A.330 as it relates to the employees' pension fund shall be void.","path":["KRS Chapter 67A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=52310","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:27Z","sha256":"e42138172c352f4ae7ac935bc039a3f01edf1b3a1bb73457b711f527c63ece78","source_id":"us-ky","stale":false,"prev":"us-ky/krs-67a.315","next":"us-ky/krs-67a.330"},"notice":"GroundRules: Original legal text. Not legal advice."}