95.874 Records and accounts -- Accurate system to be maintained. - Kentucky Statutes

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95.874 Records and accounts -- Accurate system to be maintained. (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 95.851 to
95.884 and KRS 95.991. This system shall be integrated, to the extent possible with
the accounts, records, and procedures of the city 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 employee contributions picked up by the employer pursuant to
KRS 65.155, 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.
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 city 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 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 city'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 city's contributions for future membership service. History: Amended 1982 Ky. Acts ch. 166, sec. 53, effective July 15, 1982. -- Amended 1980 Ky. Acts ch. 188, sec. 90, effective July 15, 1980. -- Created 1956 Ky. Acts
ch. 16, sec. 24, effective July 1, 1956. Legislative Research Commission Note (11/21/96). In 1974, the Reviser of Statutes renumbered KRS 95.885 as KRS 95.991. 1980 Ky. Acts ch. 188, sec. 90, a revisory
act, mistakenly changed a reference in this statute from "KRS 95.851 to 95.885" to
"KRS 95.851 to 95.991." Because this change would appear to effect a substantive
change in the law, it has been disregarded, and the reference has been made to read
"KRS 95.851 to 95.884 and KRS 95.991" under KRS 7.123(4) and 7.136(1)(a).