78.784 Board’s administration of actuarial processes.
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/ky/chapter-78/78-784A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)As soon as practicable after its organization, the County Employees
Retirement System board shall adopt the actuarial tables, assumptions, and
methods necessary for the administration of the system and for the annual
determination of actuarial assets, actuarial liabilities, and recommended
employer contribution rates of the system as provided by KRS 61.702 and
78.635, for the pension and retiree health funds.
(b)The board shall cause an actuarial valuation to be made annually. The
valuation shall at a minimum include:
1. A description of the actuarial assumptions used in the actuarial
valuation, which shall be reasonably related to the experience of the
system and represent the actuary's best estimate of anticipated
experience;
2. A description of any funding methods utilized or required by state law in
the development of the actuarial valuation results;
3. A description of any changes in actuarial assumptions and methods from
the previous year's actuarial valuation;
4. The actuarially recommended contribution rate for employers for the
upcoming budget periods;
5. A thirty
(30)year projection of the funding levels, unfunded liabilities,
and actuarially recommended contribution rates for employers based
upon the actuarial assumptions, funding methods, and experience of the
system as of the valuation date; and
6. A sensitivity analysis that evaluates the impact of changes in system
assumptions, including but not limited to the investment return
assumption, payroll growth assumption, and medical inflation rates, on
employer contribution rates, funding levels, and unfunded liabilities.
(c)1. At least once in each two
(2)year period, the board shall cause an
actuarial investigation to be made of all of the economic experience
under the retirement system, including but not limited to the inflation
rate, investment return, and payroll growth assumptions, relative to the
economic assumptions and funding methods previously adopted by the
board.
2. At least once in each five
(5)year period, the board shall cause an
actuarial investigation to be made of all the demographic experience
under the system, including but not limited to mortality tables,
withdrawal rates, and retirement rate assumptions, relative to the
demographic actuarial assumptions previously adopted by the board.
3. Each actuarial investigation shall include at a minimum a summary of
the changes in actuarial assumptions and funding methods recommended
in the investigation and the projected impact of the recommended
changes on funding levels, unfunded liabilities, and actuarially
recommended contribution rates for employers over a thirty
(30)year
period.
(d)Pursuant to the actuarial investigations, the board shall, from time to time,
revise the actuarial tables previously adopted by the board and shall thereupon
revise the bases of the rates of employer contributions required under KRS
78.510 to 78.852.
(e)For any change in actuarial assumptions, funding methods, retiree health
insurance premiums and subsidies, or any other decisions made by the board
that impact system liabilities and actuarially recommended contribution rates
for employers and that are not made in conjunction with the actuarial
investigations required by paragraph
(c)of this subsection, an actuarial
analysis shall be completed showing the projected impact of the changes on
funding levels, unfunded liabilities, and actuarially recommended contribution
rates for employers over a thirty
(30)year period.
(f)All actuarial investigations, analyses, and valuations shall be certified to the
board by an actuary who shall be a fellow of the Conference of Consulting
Actuaries or a member of the American Academy of Actuaries.
(2)A copy of each actuarial investigation, actuarial analysis, and annual valuation
required by subsection
(1)of this section shall be forwarded electronically to the