KRS § 61.652 — KY Code / Title VIII / Chapter 61 / Section 61.652
61.652 Administration of all excess benefit plans -- Participation in plan -- Determination of benefit amount -- Required contribution of plans
Status: in_force

61.652 Administration of all excess benefit plans -- Participation in plan --

Determination of benefit amount -- Required contribution of plans.

(1) The Kentucky Employees Excess Benefit Plan established in KRS 61.663 and

the State Police Excess Benefit Plan established in KRS 16.568 shall be

administered by the board of trustees of the Kentucky Retirement Systems.

The County Employees Excess Benefit Plan established in KRS 78.652 shall

be administered by the board of trustees of the County Employees Retirement

System. Each board shall have the same authority in its administration as it

has in the administration of the Kentucky Employees Retirement System, the

County Employees Retirement System, and the State Police Retirement

System, as applicable.

(2) The plans shall constitute qualified governmental excess benefit plans as

provided in 26 U.S.C. sec. 415(m).

(3) All retired members and beneficiaries of the two (2) retirement systems

administered by the Kentucky Retirement Systems and (1) retirement system

administered by the County Employees Retirement System, whose effective

retirement dates are July 1, 1998, or after, and whose retirement allowances

have been limited by 26 U.S.C. sec. 415 shall be participants in the plans.

Each member's participation in the plans shall be determined each fiscal year

and will cease for any year in which the retirement allowance is not limited by

26 U.S.C. sec. 415.

(4) A participant shall receive a benefit equal to the difference between the

retirement allowance otherwise payable from the system prior to any reduction

or limitation required by 26 U.S.C. sec. 415 and the actual retirement

allowance payable as limited by 26 U.S.C. sec. 415. The benefit shall be

subject to withholding for applicable state and federal taxes. The benefit shall

be paid in accordance with the retirement payment option selected by the

member or beneficiary for the retirement allowance.

(5) (a) Each board, in accordance with the recommendation of the actuary, shall

determine the required contribution for each plan the respective board

administers in order to pay benefits each fiscal year. The required

contribution for each of the three (3) plans in each fiscal year shall be the

total amount of benefits payable under this section to all participants plus

the amount required to pay the administrative expenses of the plan and

the employer's share of any employment taxes on the benefits paid from

the plan.

(b) The required contribution shall be paid by the participating employers.

(c) The required contribution for each plan shall be deposited into the

separate fund. The plan is intended to be exempt from federal income tax

under 26 U.S.C. sec. 115 and 26 U.S.C. sec. 415(m)(1).

(d) The benefit liability of each plan shall be determined on a fiscal year

basis, and contributions shall not be accumulated to pay benefits in future

fiscal years. Any assets of the plans not used to pay benefits in the

current fiscal year shall be used for payment of the administrative

expenses of the plan for the current or future fiscal years or shall be paid

to the appropriate retirement system as an additional employer

contribution.

(6) The benefits payable from the plans shall be treated in accordance with KRS

61.690.

(7) The board shall promulgate administrative regulations to modify the benefits

payable under the plans as necessary for the plans to be qualified under 26

U.S.C. sec. 415(m).

(8) The provisions of this section, and any administrative regulations promulgated

as a result of this section, shall be applied retroactively to retired members, and

beneficiaries, whose effective retirement dates are between July 1, 1998, and

July 14, 2000.