61.701 Kentucky Retirement Systems insurance trust fund -- Purpose --
651 words·~3 min read·
/ky/61-701A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Participation, regulation, and termination.
(a)There is hereby maintained a trust fund known as "Kentucky Retirement
Systems insurance trust fund."
(b)Insurance trust fund assets shall be deemed trust funds to be held and
applied solely as provided in this section. Assets shall not be used for any
other purpose and shall not be used to pay the claims of creditors or any
individual, person, or employer participating in the Kentucky Employees
Retirement System, County Employees Retirement System, or State
Police Retirement System.
(c)The trust fund has been established as a trust exempt from taxation
under 26 U.S.C. sec. 115.
(2)The insurance trust fund has been created for the purpose of providing a trust
separate from the retirement funds. Trust fund assets are and shall be:
(a)Dedicated for use for health benefits as provided in KRS 61.702 and
78.5536 and as permitted under 26 U.S.C. secs. 105 and 106, to retired
recipients and employees of employers participating in the Kentucky
Employees Retirement System, County Employees Retirement System,
and State Police Retirement System, and to certain of their dependents or
beneficiaries, including but not limited to qualified beneficiaries as
described in 42 U.S.C. secs. 300bb-1 et seq.;
(b)For recordkeeping purposes, segregated from the retirement trust funds
established under KRS 16.510, 61.515, and 78.520 and attributable to
members of the State Police Retirement System, the Kentucky
Employees Retirement System, and the County Employees Retirement
System, respectively, and when payment is made from the insurance trust
fund:
1. The assets attributable to members of the Kentucky Employees
Retirement System shall not be used to pay health benefits for
members of the County Employees Retirement System or the State
Police Retirement System;
2. The assets attributable to members of the County Employees
Retirement System shall not be used to pay health benefits for
members of the Kentucky Employees Retirement System or the
State Police Retirement System; and
3. The assets attributable to members of the State Police Retirement
System shall not be used to pay health benefits for members of the
Kentucky Employees Retirement System or the County Employees
Retirement System; and
(c)For recordkeeping purposes for the assets attributable to the members of
the Kentucky Employees Retirement System and the County Employees
Retirement System, further segregated between members in hazardous
positions as defined in KRS 61.592 and 78.510 and members in
nonhazardous positions as defined in KRS 61.510 and 78.510, and when
payment is made from the insurance trust fund:
1. The assets attributable to members in hazardous positions shall not
be used to pay health benefits to members in nonhazardous
positions; and
2. The assets attributable to members in nonhazardous positions shall
not be used to pay health benefits to members in hazardous
positions.
(3)The boards shall manage the assets of the insurance fund in the same manner
in which the respective board administers its retirement funds, except that
separate accounting and financial reporting shall be maintained for the
insurance trust fund.
(4)In addition to the requirements of subsection
(2)of this section, the employers
participating in the trust funds are limited to the Commonwealth, political
subdivisions of the Commonwealth, and entities whose income is exempt from
taxation under 26 U.S.C. sec. 115. No other entity may participate in the
insurance trust funds.
(5)If the insurance trust fund is terminated, the assets in the insurance trust fund
may revert, after the payment of all liabilities, to the participating employers as
determined by the board of trustees.
(6)The respective board of trustees may adopt regulations and procedures and
take all action necessary and appropriate to provide that the income of the
insurance trust fund the board administers is exempt from taxation under Title
26 of United States Code.
(7)The establishment of the Kentucky Retirement Systems insurance trust fund
shall not diminish or expand the rights of any recipients, employees, or
dependents to health benefits.