KRS § 95.530 — KY Code / Title IX / Chapter 95 / Section 95.530
95.530 Board of trustees of pension fund established under KRS 95.520 -- Members -- Officers -- Option to convert pension benefits to annuity benefits -- Adoption of ordinance dissolving pension fund -- Liquidation and distribution of residual assets -- Report
Status: in_force

95.530 Board of trustees of pension fund established under KRS 95.520 --

Members -- Officers -- Option to convert pension benefits to annuity benefits --

Adoption of ordinance dissolving pension fund -- Liquidation and distribution

of residual assets -- Report.

(1) In cities with a pension fund established under KRS 95.520 where there are fewer

than six (6) active members of the pension fund, except as provided by subsection

(3) of this section, the board of trustees of the policemen's and firefighters' pension

fund is composed of the mayor, city treasurer or chief financial officer, and one (1)

retired member each from the police and fire departments. The retired members

from the police and fire departments shall be elected by the respective retired

members of those departments annually by ballot, one (1) from each department,

and shall serve for one (1) year and until their respective successors are elected and

qualified. The board shall select from their number a president and a secretary.

(2) If there are six (6) or more active members of the fund, there shall be two (2)

additional board members added to the members established by subsection (1) of

this section who shall be one (1) active member of the fund from each department

elected by the active members of the fund from the respective departments and who

shall serve for one (1) year and until their respective successors are elected and

qualified. If all of the six (6) or more active members or all of the retired members

are from one (1) department, then both of the active member board members or

both of the retired board members, as the case may be, shall be elected from that

department.

(3) If there are fewer than six (6) active and retired members of the policemen's and the

firefighters' pension fund, the board of trustees shall be composed of the mayor, city

treasurer or chief financial officer, and two (2) employees appointed by the mayor,

one (1) from the city police department and one (1) from the city fire department,

who shall serve for one (1) year and until their respective successors are appointed

and qualified. If all of the members of the pension fund are from one (1)

department, no appointment shall be made from the other department.

(4) The board of trustees' membership shall be restructured according to the provisions

of this section at the time of the next scheduled election of board members after

July 15, 2016.

(5) If there are fewer than twelve (12) active and retired members or beneficiaries of the

policemen's and the firefighters' pension fund, the governing body of the fund may

elect to offer to individuals entitled to benefits from the fund a one (1) time

irrevocable option to convert monthly pension benefits from the fund to monthly

annuity benefits from an insurance company for the same amount. An insurance

company accepting a benefit transfer shall honor any features and options available

under the existing plan. If the governing body of the fund elects to offer the option

to convert monthly pension benefits to monthly annuity benefits, it shall provide to

individuals entitled to benefits from the fund sufficiently complete and appropriate

disclosures to assist in making an informed decision.

(6) If all liabilities to all individuals entitled to benefits from the policemen's and

firefighters' pension fund have been satisfied, the legislative body of the city may by

majority vote of the entire legislative body adopt an ordinance dissolving the fund.

If adopted, the fund's board of trustees shall, within sixty (60) days of adoption,

proceed with the liquidation of any residual assets of the fund. All residual assets

liquidated pursuant to this subsection shall be distributed by the board of trustees to

the city's general fund so long as the return of assets complies with federal and state

law governing the distribution of assets. Within thirty (30) days following the

distribution of residual assets, the board of trustees of the fund shall as its last act

file a complete report with the legislative body of the city of the actions taken to

dissolve the fund and liquidate residual assets of the fund for retention by the city

clerk the same as for other city records.