161.567 Authorization for optional retirement plan for designated employees of

350 words·~2 min read·/ky/161-567

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

certain public universities.

(1)An optional retirement plan is hereby authorized for designated employees of public

postsecondary education institutions who are also eligible for membership in the

Kentucky Teachers' Retirement System under KRS 161.220(4)(b) and 161.470(1).

The purpose of the optional retirement plan shall be to provide suitable retirement

and death benefits, while affording the maximum portability of these benefits to the

eligible employees as an alternative to membership in the retirement system.

Benefits shall be provided by the purchase of annuity contracts, mutual fund

accounts, or similar investment products, or a combination thereof, collectively

referred to as contracts or annuity contracts, at the option of the participant and

offered by the selected provider for plans established under Section 403(b) of the

Internal Revenue Code. The specific provisions of provider contracts with respect to

the benefits payable to members and their beneficiaries shall prevail over specific

provisions relating to the same subjects found in KRS 161.220 to 161.716, other

than this section.

(2)The boards of regents of those institutions identified in KRS 161.220(4)(b) shall

select no less than two

(2)but no more than four

(4)companies from which to

purchase contracts under the optional retirement plan. As criteria for this selection,

the boards of regents shall consider, among other things, and as appropriate for the

type of contract provider, the following:

(a)The portability of the contracts offered or to be offered by a company, based

on the number of states in which the company provides contracts under

similar plans;

(b)The efficacy of the contracts in the recruitment and retention of employees for

the various state public postsecondary education institutions;

(c)The nature and extent of the rights and benefits to be provided by the contracts

for participating employees and their beneficiaries;

(d)The relation of the rights and benefits to the amount of contributions required;

(e)The suitability of the rights and benefits to the needs and interests of eligible

employees and the various state public postsecondary education institutions;

and

(f)The ability of the designated companies to provide the rights and benefits

under those contracts.