KRS § 18A.250 — KY Code / Title III / Chapter 18A / Section 18A.250
18A.250 Deferred compensation system -- Automatic enrollment of employees hired after July 1, 2019 -- Automatic enrollment of justices, judges, and members of the General Assembly elected or appointed after July 1, 2021
Status: in_force

18A.250 Deferred compensation system -- Automatic enrollment of employees

hired after July 1, 2019 -- Automatic enrollment of justices, judges, and

members of the General Assembly elected or appointed after July 1, 2021.

(1) The authority shall establish and maintain a deferred compensation plan for the

employees of the State of Kentucky. Participation in such plan shall be by

agreement between such employees and the authority and shall provide for the

deferral of such amount of compensation as requested by the employee.

Participating employees must authorize that such deductions be made from their

wages for the purpose of participation in such program.

(2) The board is directed to develop and obtain, for the benefit of employees, a

qualified employee plan that includes a qualified cash or deferred arrangement as

described in Section 401(k) of the Internal Revenue Code. The board is directed to

develop a program for participants to borrow from their account or accounts in the

plan. The plan shall be in addition to other plans offered by the board, and shall be

offered to employees upon receipt of appropriate approval of the Internal Revenue

Service or on January 1, 1985, whichever occurs later.

(3) Notwithstanding the provisions of KRS 337.060, agreements to participate and plan

elections made by employees pursuant to subsections (1) and (2) of this section may

be made in writing or by electronic record, signature, or contract as determined by

the authority and in accordance with the provisions of KRS 369.101 to 369.120.

Agreements and elections, including but not limited to hardship withdrawal

applications, loan applications, beneficiary designations, and withdrawal requests

made by participating employees under the plan, shall not be denied legal effect or

enforceability if made electronically to the extent permitted by the authority.

(4) Notwithstanding KRS 337.060 and subsections (1) to (3) of this section:

(a) Each full-time employee of the executive, judicial, and legislative branches of

Kentucky state government hired on or after July 1, 2019, shall be

automatically enrolled in the 401(k) plan established pursuant to this section,

and the employee's compensation shall be reduced by thirty dollars ($30) per

month and contributed as a pre-tax deferral to the 401(k) plan unless and until

the employee makes a deferral election under the terms of the 401(k) plan.

Full-time status shall be determined by an employee's employer. The authority

shall not be responsible or liable for any cost or liabilities resulting from such

eligibility determinations made by an employer;

(b) Each new member of the General Assembly elected or appointed on or after

July 1, 2021, upon taking office, shall be automatically enrolled in the 401(k)

plan established pursuant to this section, and the member's compensation shall

be reduced by thirty dollars ($30) per month and contributed as a pre-tax

deferral to the 401(k) plan unless and until the member makes a deferral

election under the terms of the 401(k) plan;

(c) Each new justice of the Supreme Court and each new regular judge of the

Court of Appeals, Circuit Court, District Court, and Family Court elected or

appointed on or after July 1, 2021, upon taking office, shall be automatically

enrolled in the 401(k) plan, and the justice's or judge's compensation, as

applicable, shall be reduced by thirty dollars ($30) per month and contributed

as a pre-tax deferral to the 401(k) plan unless and until the justice or judge, as

applicable, makes a deferral election under the terms of the 401(k) plan. This

section shall not apply to special judges appointed under KRS 26A.020; and

(d) The automatic enrollment shall begin as of the employee's first paycheck or as

soon as administratively feasible thereafter. The board shall select a default

investment fund or funds, pursuant to applicable federal law, for investment of

an employee's deferrals into the employee's account until the employee makes

an investment election. The board shall amend the 401(k) plan for the

implementation and administration of employee automatic enrollment, and the

board shall have authority to implement automatic enrollment consistent with

applicable requirements of the Internal Revenue Code of 1986, as amended.

The board may promulgate administrative regulations for implementation of

automatic enrollment.