161.552 Definitions for section -- Employer contributions for retiree health benefits

363 words·~2 min read·/ky/161-552

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to be deposited into state accumulation fund when medical insurance fund

reaches actuarial funding level of at least one hundred percent -- Restoration

of funding.

(1)As used in this section:

(a)"Funding level" means the actuarial value of assets divided by the actuarially

accrued liability expressed as a percentage that is determined and reported by

the retirement system's actuary in the retirement system's annual actuarial

valuation for the medical insurance fund;

(b)"Medical insurance fund" means all contributions and amounts included in the

funds established in KRS 161.420(5) and 161.677; and

(c)"State accumulation fund" means the fund established in KRS 161.420(3).

(2)Except as provided in subsection

(3)of this section, when the medical insurance

fund has reached an actuarial funding level of at least one hundred percent (100%)

as determined by the annual actuarial valuation, the employer contributions for

retiree health benefits as provided in KRS 161.550(1)(a)2., (b)2., (c)2., (d)3., and

(e)3. and

(3)shall be deposited into the state accumulation fund to help pay down

the unfunded liabilities of pension annuities instead of being deposited into the

medical insurance fund. Deposits to the state accumulation fund shall occur on and

after the beginning of the fiscal year following the annual actuarial valuation in

which the criteria of this subsection are first met.

(3)After reaching an actuarial funding level of at least one hundred percent (100%), if

the actuarial funding level of the medical insurance fund falls below ninety-five

percent (95%) as determined by the annual actuarial valuation, the employer

contributions for retiree health benefits as provided in KRS 161.550(1)(a)2., (b)2.,

(3)shall be deposited into the medical insurance fund

instead of the state accumulation fund. Deposits to the medical insurance fund shall

occur on and after the beginning of the fiscal year following the annual actuarial

valuation in which the criteria of this subsection are met and shall continue until the

actuarial funding level of the medical insurance fund is at least one hundred percent

(100%). When the medical insurance fund regains an actuarial funding level of at

least one hundred percent (100%), the provisions of subsection

(2)of this section

shall apply.