61.652 Administration of all excess benefit plans -- Participation in plan --
579 words·~3 min read·
/ky/61-652A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Determination of benefit amount -- Required contribution of plans.
(1)The Kentucky Employees Excess Benefit Plan established in KRS 61.663 and
the State Police Excess Benefit Plan established in KRS 16.568 shall be
administered by the board of trustees of the Kentucky Retirement Systems.
The County Employees Excess Benefit Plan established in KRS 78.652 shall
be administered by the board of trustees of the County Employees Retirement
System. Each board shall have the same authority in its administration as it
has in the administration of the Kentucky Employees Retirement System, the
County Employees Retirement System, and the State Police Retirement
System, as applicable.
(2)The plans shall constitute qualified governmental excess benefit plans as
provided in 26 U.S.C. sec. 415(m).
(3)All retired members and beneficiaries of the two
(2)retirement systems
administered by the Kentucky Retirement Systems and
(1)retirement system
administered by the County Employees Retirement System, whose effective
retirement dates are July 1, 1998, or after, and whose retirement allowances
have been limited by 26 U.S.C. sec. 415 shall be participants in the plans.
Each member's participation in the plans shall be determined each fiscal year
and will cease for any year in which the retirement allowance is not limited by
26 U.S.C. sec. 415.
(4)A participant shall receive a benefit equal to the difference between the
retirement allowance otherwise payable from the system prior to any reduction
or limitation required by 26 U.S.C. sec. 415 and the actual retirement
allowance payable as limited by 26 U.S.C. sec. 415. The benefit shall be
subject to withholding for applicable state and federal taxes. The benefit shall
be paid in accordance with the retirement payment option selected by the
member or beneficiary for the retirement allowance.
(a)Each board, in accordance with the recommendation of the actuary, shall
determine the required contribution for each plan the respective board
administers in order to pay benefits each fiscal year. The required
contribution for each of the three
(3)plans in each fiscal year shall be the
total amount of benefits payable under this section to all participants plus
the amount required to pay the administrative expenses of the plan and
the employer's share of any employment taxes on the benefits paid from
the plan.
(b)The required contribution shall be paid by the participating employers.
(c)The required contribution for each plan shall be deposited into the
separate fund. The plan is intended to be exempt from federal income tax
under 26 U.S.C. sec. 115 and 26 U.S.C. sec. 415(m)(1).
(d)The benefit liability of each plan shall be determined on a fiscal year
basis, and contributions shall not be accumulated to pay benefits in future
fiscal years. Any assets of the plans not used to pay benefits in the
current fiscal year shall be used for payment of the administrative
expenses of the plan for the current or future fiscal years or shall be paid
to the appropriate retirement system as an additional employer
contribution.
(6)The benefits payable from the plans shall be treated in accordance with KRS
61.690.
(7)The board shall promulgate administrative regulations to modify the benefits
payable under the plans as necessary for the plans to be qualified under 26
U.S.C. sec. 415(m).
(8)The provisions of this section, and any administrative regulations promulgated
as a result of this section, shall be applied retroactively to retired members, and
beneficiaries, whose effective retirement dates are between July 1, 1998, and
July 14, 2000.