{"data":{"id":"us-ky/krs-90.410","jurisdiction":"us-ky","citation":"KRS 90.410","heading":"Pension fund in cities -- Increase in benefits -- Coverage provided in County","body":"Employees Retirement System after August 1, 1988 -- Option to convert\npension benefits to annuity benefits -- Repeal of ordinances established for\ncreation or maintenanc e of pension fund -- Liquidation and distribution of\nresidual assets -- 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 existing pension fund in accordance with this section. The\ncity may assess monthly such amount or percent of the salary of employees as may\nbe equitably determined on a fair actuarial basis, not to exceed five percent (5%) of\nthe monthly salary of any employee. The city legislative body shall contribute city\nrevenues to the fund which shall be not less than the contributions of the employees.\n(2) The city may create a board for the pension fund and designate trustees of that board\nto serv e as the governing body of the fund, and may fix the powers of trustees,\ndetermine the eligibility of employees or their dependents to a pension or other\nbenefit, and may provide a monthly allowance for employees eligible for a pension,\nnot to exceed one-half (1/2) of the monthly salary of any employee at the time of his\nor her retirement.\n(3) In order to adjust retirement benefits to the purchasing power of the dollar, the city\nmay annually provide an increase in benefits paid pursuant to this section. The  city\nmay provide an increase of any amount up to the increase in the consumer price\nindex calculated pursuant to KRS 64.527, but in no case shall the annual increase\nexceed five percent (5%).\n(4) When any city maintaining a pension fund for employees unde r civil service 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 (5) 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(5) 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 pl an for its 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 Retirem ent System under the alternate\nparticipation plan as described in KRS 78.530(3), but such employees may elect to\nretain coverage under this section.\n(6) If there are fewer than twelve (12) active and retired members or beneficiaries of the\npension fund, th e governing 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 shal l provide to individuals entitled to\nbenefits from the fund sufficiently complete and appropriate disclosures to assist in\nmaking an informed decision.\n(7) If all liabilities to all individuals entitled to benefits have been satisfied for a\npension fund co vered 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 r eturn 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 legislativ e body of 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=50459","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:48Z","sha256":"2e78189e6a49f960d2ea589026c7992ee29bf45aaa720227de8ee707f5ad307e","source_id":"us-ky","stale":false,"prev":"us-ky/krs-90.400","next":"us-ky/krs-90.420"},"notice":"GroundRules: Original legal text. Not legal advice."}