67A.580 Accounts and records -- Reserve accounts. - Kentucky Statutes

Download pdf

Loading PDF...

67A.580 Accounts and records -- Reserve accounts. (1) An adequate system of accounts and records shall be established and maintained for the fund that will reflect fully the requirements of the provisions of KRS 67A.360 to
67A.690. This system shall be integrated, to the extent possible with the accounts,
records, and procedures of the government to the end that the same shall operate
most effectively and at minimum expense, and that duplication of records and
accounts may be avoided. (2) All assets of the fund shall be credited according to the purposes for which they are held in the following designated reserve accounts:
(a) Members' Contribution Reserve. The amounts contributed by the members, including those picked up pursuant to KRS 67A.510(2), shall be credited to
this reserve, together with regular interest thereon as herein provided. An
individual account shall be maintained for each member, to which shall be
credited the amounts of his contributions or amounts picked up by the urban-
county government. Upon the granting of a service retirement annuity,
disability annuity, or survivor's annuity or benefit, the accumulated
contributions to the credit of the member concerned shall be transferred from
this reserve to the retirement reserve. Refunds and death payments
representing member's contributions shall be charged to this reserve. (b) Employer's Contribution Reserve. The amounts contributed by the government under the provisions hereof, for service retirement annuity,
disability retirement annuity, and benefits to survivors covering membership
service and prior service, shall be credited to this reserve. Upon the granting
of a service retirement annuity, disability retirement annuity, or survivor's
benefit, an amount representing the excess of the actuarial value of the
annuity, or benefit over the accumulated contributions of the member, shall be
transferred from this reserve to the retirement reserve. (c) Retirement Reserve. Upon the granting of a service retirement annuity, disability retirement annuity, or survivor's benefit, the accumulated
contributions of the member, including those picked up pursuant to KRS
67A.510(2), and an amount representing the excess of the actuarial value of
the annuity or benefit over such accumulated contributions, shall be
transferred to this reserve from the member's contribution reserve and
employer's contribution reserve, respectively. All income from investments,
including gains on investment transactions, shall be credited to this reserve.
All losses on investments shall be charged to this reserve. All payments on
account of any annuity made by the fund shall be charged to this reserve. Any
excess balance in this reserve, as determined by actuarial valuation as of the
close of any fiscal year, shall be applied to reduce the employee's
contributions for membership service for the fiscal years next following the
date of such valuation. Any deficiency in this reserve shall be removed by an
increase in the amount of government's contributions for future membership
service. Effective: July 15, 2002 History: Amended 2002 Ky. Acts ch. 274, sec. 6, effective July 15, 2002. -- Amended 1982 Ky. Acts ch. 166, sec. 42, effective July 15, 1982. -- Created 1974 Ky. Acts
ch. 106, sec. 23, effective July 1, 1974.