78.640 Members' account -- Interest -- Transfer of account balance to retirement
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/ky/78-640A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
allowance account.
(1)The members' account shall be the account to which:
(a)All members' contributions, or contributions picked up by the employer after
August 1, 1982, and interest allowances as provided in KRS 78.510 to 78.852
shall be credited, except as provided by KRS 78.5536(3)(b); and
(b)For members who begin participating in the system on or after January 1,
2014, the employer pay credit and interest credited on such amounts as
provided by KRS 78.5512 and 78.5516 shall be credited.
Only funds from this account shall be used to return the accumulated contributions
or accumulated account balances of a member when required to be returned to him
or her by reason of any provision of KRS 78.510 to 78.852. Prior to the member's
retirement, death, or refund in accordance with KRS 61.625, no funds shall be made
available from the member account.
(2)Each member's contribution or contribution picked up by the employer shall be
credited to the individual account of the contributing member, except as provided
by KRS 78.5536(3)(b).
(a)Each member shall have his or her individual account credited with interest on
June 30 of each year.
(b)For a member who begins participating before September 1, 2008, interest
shall be credited to his or her individual account at a rate determined by the
board but not less than two percent (2%) per annum on the accumulated
account balance of the member on June 30 of the preceding fiscal year.
(c)For a member who begins participating on or after September 1, 2008, but
prior to January 1, 2014, interest shall be credited to his or her individual
account at a rate of two and one-half percent (2.5%) per annum on the
accumulated contributions of the member on June 30 of the preceding fiscal
year.
(d)For a member who begins participating on or after January 1, 2014, in the
hybrid cash balance plan, interest shall be credited in accordance with KRS
78.5512 and 78.5516.
(e)The amounts of interest credited to a member's account under this subsection
shall be transferred from the retirement allowance account.
(a)Upon the retirement of a member who began participating in the system prior
to January 1, 2014, his or her accumulated account balance shall be
transferred from the members' account to the retirement allowance account.
(b)Upon the retirement of a member who began participating in the system on or
after January 1, 2014, who elects to annuitize his or her accumulated account
balance as prescribed by KRS 78.5512(7)(a) or
(b)or 78.5516(7)(a) or (b), the
member's accumulated account balance shall be transferred to the retirement
allowance account.