Kentucky Administrative Regulations › Title 105 - KENTUCKY PUBLIC PENSION AUTHORITY › Chapter 1 - General Rules › Section 105 KAR 1:149 - Quasi-governmental employer cessation window

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				18A.205,
				18A.225,
				61.510
				to
				61.705,
				26 U.S.C.
				401,
				402,
				403
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				61.645(9)(e) requires the
				Board of Trustees of Kentucky Retirement Systems to promulgate administrative
				regulations necessary or proper in order to carry out the provisions of
				KRS
				61.510 to
				61.705.
				KRS
				61.522(6) authorizes certain
				quasi-governmental employers in the Kentucky Employees Retirement System to
				cease participation of its nonhazardous employees under the provisions and
				requirements of
				KRS
				61.522(8). The ceased
				quasi-governmental employer shall pay the full actuarial cost of benefits
				accrued by its current and former nonhazardous employees through June 30, 2021,
				except as provided by
				KRS
				61.522(8)(g) 4.
				KRS
				61.522(9) requires the Board
				to promulgate administrative regulations to administer the provisions of the
				statute. This administrative regulation establishes the temporary procedures
				and requirements for quasi-governmental employer cessation from participation
				in the Kentucky Employees Retirement System pursuant to
				KRS
				61.522.
Section
			 1. Definitions.
(1) "Alternative
			 retirement program" means a plan provided by a ceased quasi-governmental
			 employer, which meets the qualification requirements of
			 26 U.S.C.
			 401(a) or
			 26 U.S.C.
			 403(b), is eligible to
			 receive direct trustee-to-trustee transfers of pre-tax and post-tax
			 contributions, and does not include a defined benefit plan.
(2) "Ceased employer" means a
			 quasi-governmental employer who, on or after April 1, 2020, but prior to May 1,
			 2021, or in the case of university or community college employers it shall be
			 prior to January 1, 2021, submits a resolution to cease participation in
			 Kentucky Employees Retirement System ("KERS"), which is accepted by the Board
			 on or before June 30, 2021.
(3)
			 "Employer", for the purposes of this administrative regulation, means a
			 quasi-governmental employer including local and district health departments
			 governed by KRS Chapter 212, state-supported universities and community
			 colleges, the Kentucky Higher Education Student Loan Corporation, and any other
			 agency otherwise eligible to voluntarily cease participating in KERS pursuant
			 to
			 KRS
			 61.522.
(4) "Employer election" means an election by
			 ceasing employers set forth in the resolution to cease participation in KERS
			 regarding whether nonhazardous employees hired prior to June 30, 2021, who
			 began participating in KERS prior to January 1, 2014, will continue to
			 participate in KERS after June 30, 2021. Nonhazardous employees of employers
			 who do not elect for their employees to continue participating in KERS will not
			 accrue additional service credit or benefits with KERS through the ceased
			 employer after June 30, 2021.
(5)
			 "Nonhazardous employee" means a regular full-time employee participating in
			 KERS in a position other than a position classified as hazardous by the board
			 pursuant to
			 KRS
			 61.592.