95.869 Board of trustees to operate fund and direct policies -- Membership --
925 words·~4 min read·
/ky/95-869A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Removal for cause -- Option to convert pension benefits to annuity benefits --
Repeal of ordinances establishing pension fund -- Liquidation and distribution
of residual assets -- Report.
(a)The responsibility for the proper operation of the fund and the direction of its
policies shall be vested in a board of trustees.
(b)If there are no active members of the fund, the board of trustees shall consist
of four
(4)members who shall be:
(a)the mayor ex officio;
(b)the city
treasurer or chief financial officer ex officio; and
(c)one
(1)retired member of
each department who shall be elected by ballot by the retired members of the
respective departments. The mayor ex officio and the city treasurer ex officio
shall serve for terms of one
(1)year under rules adopted by the board. The two
(2)retired members of the police and fire department shall serve for terms of
at least one
(1)year with a maximum of two
(2)years under rules adopted by
the board. If there are active members of the fund, there shall be two
additional board members who shall be one
(1)active member of the fund
from each department elected by ballot by the active members of the fund
from the respective departments and who shall serve for terms of at least one
(1)year with a maximum of two
(2)years under rules adopted by the board. If
all of the active members or all of the retired members are from one
department, then both of the active-member board members or both of the
retired board members shall be elected from that department.
(c)If there are fewer than six
(6)active and retired members of the fund, the
board of trustees shall be composed of the mayor, city treasurer or chief
financial officer, and two
(2)employees appointed by the mayor, one
(1)from
the city police department and one
(1)from the city fire department, who shall
serve for one
(1)year and until their respective successors are appointed and
qualified. If all of the members of the pension fund are from one
department, no appointment shall be made from the other department.
(d)If there are fewer than six
(6)active and retired members of the fund from one
(1)department, the board of trustees shall be composed of the mayor, city
treasurer or chief financial officer, one
(1)retired member of the department
with six
(6)or more active or retired members of the fund who shall be
elected by ballot by the retired members of the department, and one
employee appointed by the mayor from the department with fewer than six
active and retired members of the fund who shall serve for one
(1)year and
until their respective successors are appointed and qualified.
(e)In the event of a vacancy of an elected member, the pension board may fill the
vacancy by appointment until the next regular election.
(2)The board of trustees membership shall be restructured according to the provisions
of this section at the time of the next scheduled election of board members after
July 15, 2020.
(3)Any member of the board convicted of an offense relating to mismanagement or
embezzlement of the fund created pursuant to KRS 95.852 shall be removed from
the board and shall be prohibited from serving on the board. If the board member
removed is an ex officio member, the city council shall appoint a replacement until
another person shall fill the office entitled to a seat on the board. If the board
member removed is an active policeman or firefighter, the board shall fill the
vacancy by appointment of another active policeman or firefighter until the next
regular election.
(4)If there are fewer than twelve
(12)active and retired members or beneficiaries of the
policemen's and firefighters' pension fund, the governing body of the fund may elect
to offer to individuals entitled to benefits from the fund a one
(1)time irrevocable
option to convert monthly pension benefits from the fund to monthly annuity
benefits from an insurance company for the same amount. An insurance company
accepting a benefit transfer shall honor any features and options available under the
existing plan. If the governing body of the fund elects to offer the option to convert
monthly pension benefits to monthly annuity benefits, it shall provide to individuals
entitled to benefits from the fund sufficiently complete and appropriate disclosures
to assist in making an informed decision.
(5)If all liabilities to all individuals entitled to benefits from the policemen's and
firefighters' pension fund have been satisfied, the ordinances establishing the fund
may be repealed by the majority vote of the duly elected members of the entire
legislative body. If repealed, the fund's board of trustees shall, within sixty
(60)days
of repeal, proceed with the liquidation of any residual assets of the fund. All
residual assets liquidated pursuant to this subsection shall be distributed by the
board of trustees to the city's general fund so long as the return of assets complies
with federal and state law governing the distribution of assets. Within thirty
days following the distribution of residual assets, the board of trustees of the fund
shall as its last act file a complete report with the legislative body of the city of the
actions taken to terminate the fund and liquidate residual assets of the fund for
retention by the city clerk the same as for other city records.