61.505 Kentucky Public Pensions Authority -- Purpose -- Membership, vacancies,
3,102 words·~14 min read·
/ky/61-505A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
compensation, and meetings -- Authority granted powers and privileges of
corporation -- Executive director, chief auditor, and employees -- Expenses --
Authorization of administrative expenses -- Duties of members.
(1)There is created an eight
(8)member Kentucky Public Pensions Authority whose
purpose shall be to administer and operate:
(a)A single personnel system for the staffing needs of the Kentucky Retirement
Systems and the County Employees Retirement System;
(b)A system of accounting that is developed by the Authority for the Kentucky
Retirement Systems and the County Employees Retirement System;
(c)Day-to-day administrative needs of the Kentucky Retirement Systems and the
County Employees Retirement System, including but not limited to:
1. Benefit counseling and administration;
2. Information technology and services, including a centralized website for
the Authority, the Kentucky Retirement Systems, and the County
Employees Retirement System;
3. Legal services;
4. Employer reporting and compliance;
5. Processing and distribution of benefit payments, and other financial,
investment administration, and accounting duties as directed by the
Kentucky Retirement Systems board of trustees or the County
Employees Retirement System board of trustees;
6. All administrative actions, orders, decisions, and determinations
necessary to carry out benefit functions required by the Kentucky
Retirement Systems and the County Employees Retirement System
statutes, including but not limited to administration of reduced and
unreduced retirement benefits, disability retirement, reemployment after
retirement, service purchases, computation of sick-leave credit costs,
correction of system records, qualified domestic relations orders, and
pension spiking determinations; and
7. Completing and compiling financial data and reports;
(d)Any jointly held assets used for the administration of the Kentucky
Retirement Systems and the County Employees Retirement System, including
but not limited to real estate, office space, equipment, and supplies;
(e)The hiring of a single actuarial consulting firm who shall serve both the
Kentucky Retirement Systems and the County Employees Retirement System;
(f)The hiring of a single external certified public accountant who shall perform
audits for both the Kentucky Retirement Systems and the County Employees
Retirement System;
(g)The promulgation of administrative regulations as an authority or on behalf of
the Kentucky Retirement Systems and the County Employees Retirement
System, individually or collectively, provided such regulations are not
inconsistent with the provisions of this section and KRS 16.505 to 16.652,
61.505, 61.510 to 61.705, and 78.510 to 78.852, necessary or proper in order
to carry out the provisions of this section and duties authorized by KRS
16.505 to 16.652 and 61.510 to 61.705;
(h)A system of contracting management for administrative services; and
(i)Other tasks or duties as directed solely or jointly by the boards of the
Kentucky Retirement Systems or the County Employees Retirement System.
(2)The eight
(8)member Kentucky Public Pensions Authority shall be composed of
the following individuals:
(a)The chair of the Kentucky Retirement Systems board of trustees;
(b)The chair of the County Employees Retirement System board of trustees;
(c)The investment committee chair of the Kentucky Retirement Systems board
of trustees, unless the investment committee chair is also the chair of the
board of trustees in which case the chair of the Kentucky Retirement Systems
shall appoint an individual who serves on the investment committee;
(d)The investment committee chair of the County Employees Retirement System
board of trustees, unless the investment committee chair is also the chair of
the County Employees Retirement System board of trustees in which case the
chair of the County Employees Retirement System shall appoint an individual
who serves on the investment committee;
(e)Two additional
(2)trustees of the Kentucky Retirement Systems board of
trustees selected by the chair of the Kentucky Retirement Systems board of
trustees of which one
(1)shall be a trustee who was elected by the
membership of one
(1)of the systems administered by Kentucky Retirement
Systems and one
(1)shall be a trustee of Kentucky Retirement Systems who
was appointed by the Governor; and
(f)Two additional
(2)trustees of the County Employees Retirement System
board of trustees selected by the chair of the County Employees Retirement
System board of trustees of which one
(1)shall be a trustee who was elected
by the membership of the County Employees Retirement System and one
shall be a trustee of the County Employees Retirement System who was
appointed by the Governor.
(3)The Kentucky Public Pensions Authority is hereby granted the powers and
privileges of a corporation, including but not limited to the following powers:
(a)To sue and be sued in its corporate name;
(b)To make bylaws not inconsistent with the law and in accordance with its
duties as provided by this section;
(c)To conduct the business and promote the purposes for which it was formed;
(d)To carry out the obligations of the Authority subject to KRS Chapters 45,
45A, 56, and 57;
(e)To purchase fiduciary liability insurance; and
(f)The Kentucky Public Pensions Authority shall reimburse any Authority
member, officer, or employee for any legal expense resulting from a civil
action arising out of the performance of his or her official duties. The hourly
rate of reimbursement for any contract for legal services under this paragraph
shall not exceed the maximum hourly rate provided in the Legal Services
Duties and Maximum Rate Schedule promulgated by the Government
Contract Review Committee established pursuant to KRS 45A.705, unless a
higher rate is specifically approved by the secretary of the Finance and
Administration Cabinet or his or her designee.
(4)Any vacancy which may occur in an appointed position on the Kentucky Public
Pensions Authority shall be filled in the same manner which provides for the
selection of the particular member of the Authority. No person shall serve in more
than one
(1)position as a member of the Authority and if a person holds more than
one
(1)position as a member of the Authority, he or she shall resign a position.
(a)Membership on the Authority shall not be incompatible with any other office
unless a constitutional incompatibility exists. No Authority member shall
serve in more than one
(1)position as a member of the Authority.
(b)An Authority member shall be removed from office upon conviction of a
felony or for a finding of a violation of any provision of KRS 11A.020 or
11A.040 by a court of competent jurisdiction.
(c)A current or former employee of the County Employees Retirement System,
Kentucky Retirement Systems, or the Kentucky Public Pensions Authority
shall not be eligible to serve as a member of the Authority.
(6)Kentucky Public Pensions Authority members who do not otherwise receive a
salary from the State Treasury shall receive a per diem of eighty dollars ($80) for
each day they are in session or on official duty, and they shall be reimbursed for
their actual and necessary expenses in accordance with state administrative
regulations and standards, except that the members shall not receive a per diem or
receive reimbursements on the same day they receive a per diem or reimbursements
for service to the Kentucky Retirement Systems board of trustees or County
Employees Retirement Systems board of trustees.
(a)The Authority shall meet at least once in each quarter of the year and may
meet in special session upon the call of the chair or the executive director of
the Authority.
(b)The Authority shall elect a chair and a vice chair. The chair shall not serve
more than four
(4)consecutive years as chair or vice chair of the Authority.
The vice chair shall not serve more than four
(4)consecutive years as chair or
vice chair of the Authority. A member who has served four
(4)consecutive
years as chair or vice chair of the Authority may be elected chair or vice chair
of the Authority after an absence of two
(2)years from the positions.
(c)A majority of the Authority members shall constitute a quorum and all actions
taken by the Authority shall be by affirmative vote of a majority of the
Authority members present.
(d)The Authority shall post on the Authority's website and shall make available
to the public:
1. All meeting notices and agendas of the Authority. Notices and agendas
shall be posted to the Authority's website at least seventy-two
(72)hours
in advance of the Authority's meetings, except in the case of special or
emergency meetings as provided by KRS 61.823;
2. All Authority minutes or other materials that require adoption or
ratification by the Authority. The items listed in this subparagraph shall
be posted within three
(3)business days of adoption or ratification of the
Authority;
3. All bylaws, policies, or procedures adopted or ratified by the Authority;
and
4. A listing of the members of the Authority and membership on each
committee established by the Authority.
(a)The Kentucky Public Pensions Authority shall appoint or contract for the
services of an executive director and a chief auditor and fix the compensation
and other terms of employment for these positions without limitation of the
provisions of KRS Chapter 18A, 45A, and KRS 64.640. The executive
director shall be the chief administrative officer of the Authority, the
Kentucky Retirement Systems board of trustees, and the County Employees
Retirement System board of trustees. The chief auditor shall report directly to
the Kentucky Public Pensions Authority members to perform internal audit
functions as directed by the Authority. The executive director and chief
auditor shall work cooperatively with the chief executive officers of the
Kentucky Retirement Systems and the County Employees Retirement System.
The Authority shall annually conduct a performance evaluation of the
executive director and chief auditor.
(b)The Kentucky Public Pensions Authority shall authorize the executive
director, or the chief auditor in the case of employees under the direct
supervision of the chief auditor, to appoint the employees deemed necessary
to transact the duties of the Authority for the purposes outlined in subsection
(1)of this section. After April 14, 2022, approval by the Authority shall be
required for a petition to the secretary of the Personnel Cabinet for the
creation of any new unclassified position pursuant to KRS 18A.115(1)(e), (g),
(h), and (i).
(c)Effective April 1, 2021, the Kentucky Public Pensions Authority shall assume
responsibility of administering the staff of the Kentucky Retirement Systems
in order to provide the services established by this section.
(d)1. All employees of the Kentucky Public Pensions Authority, except for
the executive director, the chief auditor, and no more than six
unclassified employees of the Office of Investments employed pursuant
to KRS 18A.115(1)(e), (g), (h), and (i), shall be subject to the state
personnel system established pursuant to KRS 18A.005 to 18A.204 and
shall have their salaries determined by the secretary of the Personnel
Cabinet.
2. The employees exempted from the classified service under this
paragraph shall not be subject to the salary limitations specified in KRS
64.640(2) and (3).
3. The Kentucky Public Pensions Authority shall adopt a written salary and
classification plan fixing a range of compensation and written terms of
employment for any of the unclassified employees of the Office of
Investments it authorizes under this paragraph. The Authority shall
authorize the executive director to appoint up to six
(6)unclassified
employees of the Office of Investments subject to the compensation
ranges and terms of employment the Authority has established. The
Authority may amend the written salary and classification plan adopted
under this paragraph at any time.
(e)The Authority shall annually review, approve, and submit a report to the
Public Pension Oversight Board detailing the number of employees of the
Authority, the salary paid to each employee, and the change in the salaries of
each individual employed by the Authority over the prior year.
(f)The Authority shall require the executive director and the employees as it
thinks proper to execute bonds for the faithful performance of their duties
notwithstanding the limitations of KRS Chapter 62.
(g)Notwithstanding any other provision of statute to the contrary, including but
not limited to any provision of KRS Chapter 12, the Governor shall have no
authority to change any provision of this section by executive order or action,
including but not limited to reorganizing, replacing, amending, or abolishing
the membership of the Kentucky Public Pensions Authority.
(9)All employees of the Authority shall serve during its will and pleasure.
Notwithstanding any statute to the contrary, employees shall not be considered
legislative agents under KRS 6.611.
(10)The Attorney General, or an assistant designated by him or her, may attend each
meeting of the Authority and may receive the agenda, board minutes, and other
information distributed to Authority members upon request. The Attorney General
may act as legal adviser and attorney for the Authority, and the Authority may
contract for legal services, notwithstanding the limitations of KRS Chapter 12 or
13B.
(a)1. All expenses incurred by or on behalf of the Kentucky Public Pensions
Authority shall be paid by the systems administered by the Kentucky
Retirement Systems or the County Employees Retirement System and
shall be prorated, assigned, or allocated to each system as determined by
Kentucky Public Pensions Authority.
2. Until June 30, 2024, any additional initial costs determined by the
Authority to be attributable solely to establishing a separate County
Employees Retirement System board and the Kentucky Public Pensions
Authority as provided by this section and KRS 78.782 shall be paid by
the County Employees Retirement System. Until June 30, 2024, any
additional ongoing annual administrative and investment expenses that
occur after the establishment of a separate County Employees
Retirement System board and the Kentucky Public Pensions Authority
that are determined by the Authority to be a direct result of establishing
a separate County Employees Retirement System board and the
Kentucky Public Pensions Authority shall be paid by the County
Employees Retirement System. Beginning on and after July 1, 2024, any
annual administrative and investment expenses shall be prorated,
assigned, or allocated to each system as determined by the Kentucky
Public Pensions Authority as provided by subparagraph 1. of this
paragraph but without attribution to the establishment of a separate
County Employees Retirement System board and the Kentucky Public
Pensions Authority.
3. In order to evaluate the results of establishing a separate County
Employees Retirement System board and the Kentucky Public Pensions
Authority, on or before November 15, 2022, and on or before November
15 following the close of each successive fiscal year, the Kentucky
Public Pensions Authority shall report to the Public Pension Oversight
Board the annual administrative and investment expenses of the
Kentucky Retirement Systems and the County Employees Retirement
System. The report shall include but not be limited to the process or
manner the Authority used to prorate, assign, or allocate to each system
its share of the expenses, the amount of expenses prorated, assigned, or
allocated to each system itemized by category, and any efforts by the
systems or the Authority to reduce administrative costs and staffing
needs.
(b)Any other statute to the contrary notwithstanding, authorization for all
expenditures relating to the administrative operations of the Kentucky Public
Pensions Authority, the Kentucky Retirement Systems, and the County
Employees Retirement System shall be contained in the biennial budget unit
request, branch budget recommendation, and the financial plan adopted by the
General Assembly pursuant to KRS Chapter 48. The Kentucky Public
Pensions Authority shall approve the biennial budget unit request prior to its
submission by the Authority. The request from the Kentucky Public Pensions
Authority shall include any specific administrative expenses requested by the
Kentucky Retirement Systems board of trustees or the County Employees
Retirement System board of trustees pursuant to KRS 61.645(13) or
78.782(13), as applicable, that are not otherwise expenses specified by
paragraph
(a)of this subsection.
(a)An Authority member shall discharge his or her duties as a member of the
Authority, including his or her duties as a member of a committee of the
Authority:
1. In good faith;
2. On an informed basis; and
3. In a manner he or she honestly believes to be in the best interest of the
County Employees Retirement System and the Kentucky Retirement
Systems, as applicable.
(b)An Authority member discharges his or her duties on an informed basis if,
when he or she makes an inquiry into the business and affairs of the
Authority, system, or systems or into a particular action to be taken or
decision to be made, he or she exercises the care an ordinary prudent person
in a like position would exercise under similar circumstances.
(c)In discharging his or her duties, an Authority member may rely on
information, opinions, reports, or statements, including financial statements
and other financial data, if prepared or presented by:
1. One
(1)or more officers or employees of the Authority whom the
Authority member honestly believes to be reliable and competent in the
matters presented;
2. Legal counsel, public accountants, actuaries, or other persons as to
matters the Authority member honestly believes are within the person's
professional or expert competence; or
3. A committee of the Authority of which he or she is not a member if the
Authority member honestly believes the committee merits confidence.
(d)An Authority member shall not be considered as acting in good faith if he or
she has knowledge concerning the matter in question that makes reliance
otherwise permitted by paragraph
(c)of this subsection unwarranted.
(e)Any action taken as a member of the Authority, or any failure to take any
action as an Authority member, shall not be the basis for monetary damages
or injunctive relief unless:
1. The Authority member has breached or failed to perform the duties of
the member's office in compliance with this section; and
2. In the case of an action for monetary damages, the breach or failure to
perform constitutes willful misconduct or wanton or reckless disregard
for human rights, safety, or property.
(f)A person bringing an action for monetary damages under this section shall
have the burden of proving by clear and convincing evidence the provisions of
paragraph (e)1. and 2. of this subsection, and the burden of proving that the
breach or failure to perform was the legal cause of damages suffered by the
Kentucky Retirement Systems or County Employees Retirement System, as
applicable.
(g)In discharging his or her administrative duties under this section, an Authority
member shall strive to administer the systems in an efficient and cost-
effective manner for the taxpayers of the Commonwealth of Kentucky and
shall take all actions available under the law to contain costs for the trusts,
including costs for participating employers, members, and retirees.