{"data":{"id":"us-ky/krs-90.400","jurisdiction":"us-ky","citation":"KRS 90.400","heading":"Pension fund in cities -- Coverage provided in County Employees","body":"Retirement System after August 1, 1988 -- Option to convert pension benefits\nto annuity benefits -- Repeal of ordinances established for creation or\nmaintenance of pension fund -- Liquidation and distribution of residual assets\n-- Report.\n(1) Any city maintaining a pension fund for employees under civil service hired before\nAugust 1, 1988, operating pursuant to this section as of January 1, 2015, shall\ncontinue to operate the exist ing pension fund in accordance with this section. The\ncity may assess monthly such amount or percent of the salary of the employees as\nmay be equitably determined on a fair actuarial basis, the assessment to be deducted\nfrom the employees' salaries and paid in cash into the pension fund.\n(2) The city may make current contributions to the fund on an actuarially funded basis,\ntoward the annuities and benefits herein provided. These contributions shall be\nequal to the sum of the following:\n(a) An annual amount  resulting from the application of a rate percent of salaries\nof active members, representing the present value of the actuarial reserve\nrequirements for membership service, for service retirement annuity, disability\nretirement annuity, and annuities to su rviving spouses and children, and the\none (1) year term premium for the city's liability for death benefits, after\napplying the contribution by the active members. Such rate percent shall be\nfixed by the city legislative body at least once every three (3) to five (5) years\nafter completion of the actuarial valuation required by KRS 65.156, and shall\nbe in effect until the next actuarial valuation is completed by the fund.\n(b) An amount resulting from the application of a rate percent of the salaries of\nactive members which will provide each year regular interest on the remaining\nliability for prior service.\n(3) The city may create or continue to operate a board for the pension fund and\ndesignate trustees of that board to serve as the governing body of the fu nd, and may\nfix the powers of the trustees, determine the eligibility of employees or their\ndependents to a pension or other benefit, and may provide a monthly allowance for\nemployees eligible for a pension.\n(4) Temporary employees appointed without examin ation shall not be compelled to\ncontribute to any pension fund and shall not be eligible to benefits.\n(5) In no year shall the contribution by the city to the pension fund, in the manner\nprovided in this section, be less than the total amount assessed upon  and deducted\nfrom the salary of the employees.\n(6) The trustees of the pension fund shall, at least once every three (3) months, report in\nwriting to the mayor the receipts, expenditures, and financial status of the pension\nfund, stating the places of dep osit of funds, or the character of investments made,\nand the mayor shall cause copies of the report to be posted in at least three (3)\nplaces where city employees frequent and report.\n(7) When any city maintaining a pension fund for employees under civil s ervice hired\nbefore August 1, 1988, operating pursuant to this section as of January 1, 2015,\npicks up employee contributions pursuant to KRS 65.155, or accepts from its\nemployees a portion of their wages and contributes city funds therefor, an inviolable\ncontract shall be created between the city as employer and its employees, and the\ncity and its employees shall continue to operate under KRS 90.310 to 90.390 and\nthe adopting ordinance, except that employees, pursuant to subsection (8) of this\nsection, may choose to participate in the County Employees Retirement System. A\nrepeal of that ordinance by the city shall in no wise affect such employees unless by\nthe mutual consent of the city and an employee or employees.\n(8) After August 1, 1988, no new pension fund shall be created pursuant to this section,\nand cities which were covered by this section on or prior to August 1, 1988, shall\nparticipate in the County Employees Retirement System effective August 1, 1988.\nAny city which provided a pension plan for it s employees on or prior to August 1,\n1988, shall place employees hired after August 1, 1988, in the County Employees\nRetirement System. The board shall offer employees hired on or prior to August 1,\n1988, membership in the County Employees Retirement Syste m under the alternate\nparticipation plan as described in KRS 78.530(3), but such employees may elect to\nretain coverage under this section.\n(9) If there are fewer than twelve (12) active and retired members or beneficiaries of the\npension fund, the governi ng body of the fund may elect to offer to individuals\nentitled to benefits from the fund a one (1) time irrevocable option to convert\nmonthly pension benefits from the fund to monthly annuity benefits from an\ninsurance company for the same amount. An insurance company accepting a benefit\ntransfer shall honor any features and options available under the existing plan. If the\ngoverning body of the fund elects to offer the option to convert monthly pension\nbenefits to monthly annuity benefits, it shall provide  to individuals entitled to\nbenefits from the fund sufficiently complete and appropriate disclosures to assist in\nmaking an informed decision.\n(10) If all liabilities to all individuals entitled to benefits have been satisfied for a\npension fund covered by  this section, any ordinances established for creation or\nmaintenance of the fund may be repealed by the majority vote of the duly elected\nmembers of the entire legislative body of the city. If repealed, the governing body of\nthe fund shall, within sixty ( 60) days of repeal, proceed with the liquidation of any\nresidual assets of the fund. All residual assets liquidated pursuant to this subsection\nshall be distributed by the fund's governing body to the city government's general\nfund so long as the return of  assets complies with federal and state law governing\nthe distribution of assets. Within thirty (30) days following the distribution of\nresidual assets, the governing body of the fund shall as its last act file a complete\nreport with the legislative body o f the city of the actions taken to dissolve the fund\nand liquidate residual assets of the fund for retention by the city clerk the same as\nfor other city records.","path":["KRS Chapter 90"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=50458","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:48Z","sha256":"cc150f7eb20f976dc6a137093a183d0a53dd4fda586a3958e36fe6237d19157e","source_id":"us-ky","stale":false,"prev":"us-ky/krs-90.390","next":"us-ky/krs-90.410"},"notice":"GroundRules: Original legal text. Not legal advice."}