Kentucky Administrative Regulations › Title 105 - KENTUCKY PUBLIC PENSION AUTHORITY › Chapter 1 - General Rules › Section 105 KAR 1:148 - Merged, split, new, separate, or separated employers or entities

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				61.520,
				61.522,
				61.565,
				61.645,
				61.675,
				61.685,
				212.132
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				61.645(9)(e) authorizes the
				Board of Trustees of the Kentucky Retirement Systems to promulgate all
				administrative regulations necessary or proper in order to carry out the
				provisions of KRS
				16.505 to
				16.652 and
				61.510 to
				61.705, and to conform to
				federal statutes and regulations. As required by
				KRS
				61.565(1)(d) 4., this
				administrative regulation establishes the procedures and requirements for the
				process of assigning actuarially accrued liability contributions for a Kentucky
				Employees Retirement System employer that, on or after March 23, 2021, merges
				with another employer or entity, forms a new or separate employer or entity, or
				splits or separates operations into multiple employers or entities.
Section 1. Definitions.
(1) "Actuarially accrued liability" means a
			 prorated annual dollar contribution amount for employers with employees that
			 have participated in or are participating in the system on or after July 1,
			 2021, that is based on the individual employer's percentage of the system's
			 total actuarially accrued liability as of June 30, 2019, and determined
			 pursuant to KRS
			 61.565(1)(d) 1.
(2) "Assign" means the transfer of legal and
			 financial responsibility for paying the actuarially accrued liability to
			 another participating or non-participating employer.
(3) "Inactive employer" means a participating
			 employer that ceases to have any employees in a regular full-time position
			 participating in the system.
(4)
			 "Merged employer" means one (1) or more participating employers with an
			 actuarially accrued liability that have merged or have plans to merge with one
			 (1) or more participating or non-participating employers into a new single
			 entity or under the name of one (1) of the participating or non-participating
			 employers that are part of the merger.
(5) "New or separate employer" means:
(a) A participating employer with an
			 actuarially accrued liability that forms, becomes, or is bought out by a
			 non-participating employer; or
(b)
			 A participating employer with an actuarially accrued liability that dissolves
			 or becomes an inactive employer and one (1) or more distinct entities assumes
			 responsibility for a portion or all of the business of the inactive employer or
			 participating employer that has dissolved.
(6) "Non-participating employer" means an
			 entity that does not participate in the system.
(7) "Participating employer" means an
			 employer that participates in the system.
(8) "Split or separated employer" means a
			 participating employer with an actuarially accrued liability that divides into
			 two (2) or more distinct entities.
(9) "Submit" means an employer required form,
			 documentation, report, or payment has been received by the retirement office
			 via mail, fax, electronic mail, the Employer Self Service Web site, or other
			 mode specifically detailed in this administrative regulation.
(10) "System" means the Kentucky Employees
			 Retirement System.