{"data":{"id":"us-ky/krs-78.640","jurisdiction":"us-ky","citation":"KRS 78.640","heading":"Members' account -- Interest -- Transfer of account balance to retirement","body":"allowance account.\n(1) The members' account shall be the account to which:\n(a) All members' contributions, or contributions picked up by the employer after\nAugust 1, 1982, and interest allowances as provided in KRS 78.510 to 78.852\nshall be credited, except as provided by KRS 78.5536(3)(b); and\n(b) For members who begin participating in the system on or after January 1,\n2014, the employer pay credit and interest credited on such amounts as\nprovided by KRS 78.5512 and 78.5516 shall be credited.\nOnly funds from this account shall be used to return the accumulated contributions\nor accumulated account balances of a member when required to be returned to him\nor her by reason o f any provision of KRS 78.510 to 78.852. Prior to the member's\nretirement, death, or refund in accordance with KRS 61.625, no funds shall be made\navailable from the member account.\n(2) Each member's contribution or contribution picked up by the employer sh all be\ncredited to the individual account of the contributing member, except as provided\nby KRS 78.5536(3)(b).\n(3) (a) Each member shall have his or her individual account credited with interest on\nJune 30 of each year.\n(b) For a member who begins particip ating before September 1, 2008, interest\nshall be credited to his or her individual account at a rate determined by the\nboard but not less than two percent (2%) per annum on the accumulated\naccount balance of the member on June 30 of the preceding fiscal year.\n(c) For a member who begins participating on or after September 1, 2008, but\nprior to January 1, 2014, interest shall be credited to his or her individual\naccount at a rate of two and one -half percent (2.5%) per annum on the\naccumulated contributions of the member on June 30 of the preceding fiscal\nyear.\n(d) For a member who begins participating on or after January 1, 2014, in the\nhybrid cash balance plan, interest shall be credited in accordance with KRS\n78.5512 and 78.5516.\n(e) The amounts of interest credited to a member's account under this subsection\nshall be transferred from the retirement allowance account.\n(4) (a) Upon the retirement of a member who began participating in the system prior\nto January 1, 2014, his or her accumulated account balance shall be\ntransferred from the members' account to the retirement allowance account.\n(b) Upon the retirement of a member who began participating in the system on or\nafter January 1, 2014, who elects to annuitize his or her accumulated account\nbalance as prescribed by KRS 78.5512(7)(a) or (b) or 78.5516(7)(a) or (b), the\nmember's accumulated account balance shall be transferred to the retirement\nallowance account.","path":["KRS Chapter 78"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=54869","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:39Z","sha256":"7ed20dd359ffb6a4eed1eff29de74620a5cd4236713f12c35e8c3cb810646b23","source_id":"us-ky","stale":false,"prev":"us-ky/krs-78.635","next":"us-ky/krs-78.650"},"notice":"GroundRules: Original legal text. Not legal advice."}