{"data":{"id":"us-ky/krs-78.5516","jurisdiction":"us-ky","citation":"KRS 78.5516","heading":"Hybrid cash balance plan for members  in hazardous positions who","body":"began  participating on or after January 1, 2014, and for members  who\nmake  election under KRS  61.5955.\n(1) A  member  of the County Employees  Retirement System  in a hazardous\nposition covered by this section, who begins participating in the system on or\nafter January 1, 2014, or a member  who makes an election pursuant to KRS\n61.5955, shall receive the retirement benefits provided by this section in lieu of\nthe retirement benefits provided under KRS  78.5514. The retirement benefit\nprovided by this section shall be known as the hybrid cash balance plan and\nshall operate as another benefit tier within the County Employees Retirement\nSystem.\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  78.510 to\n78.852,  except  for employee  contributions prescribed by  KRS\n78.5536(3)(b);\n(b) An  employer pay credit of seven and one-half percent (7.5%) of the\ncreditable compensation earned by the employee for each month the\nemployee is contributing to the hybrid cash balance plan provided by this\nsection; and\n(c) Interest credits added annually to the member's accumulated account\nbalance as provided by this section.\n(3) (a) Member  contributions and  employer  pay  credits as  provided by\nsubsection (2)(a) and (b) of this section shall be credited to the member's\naccount monthly as contributions are reported and posted to the system\nin accordance with KRS 78.625.\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,\nas determined 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 Kentucky Retirement\nSystems during the fiscal year.\n(b) If the member  contributed to the hybrid cash balance plan or the\nKentucky Retirement Systems during the fiscal year, the interest credit\nadded to 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 net\ninvestment return in excess of a four percent (4%) rate of return.\n(c) If the member  did not contribute to the hybrid cash balance plan or the\nKentucky Retirement Systems during the fiscal year, the interest credit\nadded to 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 four percent (4%).\n(d) For  purposes of this subsection, \"system's geometric average net\ninvestment return\":\n1. Means  the annual average geometric investment return, net of\nadministrative and investment fees and expenses, over the last five\n(5) fiscal 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\nwhich the member  has an account.\n(e) No employer pay credits or interest credits shall be provided to a member\nwho  has taken a refund of contributions as provided by KRS  61.625 or\nwho  has retired and annuitized his or her accumulated account balance\nas prescribed by this section.\n(5) (a) Upon  termination of employment, a member  who has less than five (5)\nyears of service credited under KRS  16.543(1), 61.543(1), and 78.615(1),\nwho  elects to take a refund of his or her accumulated account balance as\nprovided by KRS  61.625, shall forfeit the accumulated employer credit,\nand shall only receive a refund of his or her accumulated contributions.\n(b) Upon  termination of employment, a member  who has five (5) or more\nyears of service credited under KRS  16.543(1), 61.543(1), and 78.615(1),\nwho  elects to take a refund of his or her accumulated account balance as\nprovided by KRS  61.625, shall receive a full refund of his or her\naccumulated account balance.\n(6) A  member  participating in the hybrid cash balance plan provided by this\nsection may retire:\n(a) At his or her normal retirement date, provided he or she has earned five\n(5) or more years of service credited under KRS  16.543(1), 61.543(1), or\n78.615(1), or another state-administered retirement system; or\n(b) At any age, provided he or she has earned twenty-five (25) or more years\nof service credited under KRS  16.543(1), 61.543(1), or 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\nher accumulated account balance annuitized by the system in accordance\nwith the actuarial assumptions and actuarial methods adopted by the\nboard and in effect on the member's retirement date;\n(b) Receive  the actuarial equivalent of his or her retirement allowance\ncalculated under paragraph (a) of this subsection payable under one (1)\nof the options set forth in KRS  61.635, except for the option provided by\nKRS  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\nparticipating in the  Kentucky  Employees  Retirement System,  County\nEmployees  Retirement System, or the State Police Retirement System prior to\nJanuary 1, 2014, except as provided by KRS 61.5955.","path":["KRS Chapter 78"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=50776","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:38Z","sha256":"5893d6a75d103135ea6a04d3a966f2d98eadff2e6c6d4cffa62d18423d476309","source_id":"us-ky","stale":false,"prev":"us-ky/krs-78.5514","next":"us-ky/krs-78.5518"},"notice":"GroundRules: Original legal text. Not legal advice."}