161.250 Board of trustees to control retirement -- Membership -- Appeals -- Trustee education program -- Public disclosure of best practices model -- Administrative regulations for authorized benefit - Kentucky Statutes

Download pdf

Loading PDF...

161.250 Board of trustees to control retirement -- Membership -- Appeals -- Trustee education program -- Public disclosure of best practices model --
Administrative regulations for authorized benefit improvements. (1) (a) The general administration and management of the retirement system, and the responsibility for its proper operation and for making effective provisions of
KRS 161.155 and 161.220 to 161.714 are vested in a board of trustees to be
known as the "Board of Trustees of the Teachers' Retirement System of the
State of Kentucky." (b) The board of trustees shall consist of the chief state school officer, the State Treasurer, and seven (7) other trustees elected as provided in KRS 161.260.
Four (4) of the elective trustees shall be members of the retirement system, to
be known as teacher trustees, two (2) shall be persons who are not members of
the teaching profession, to be known as the lay trustees, and one (1) shall be
an annuitant of the retirement system to be known as the retired teacher
trustee. One (1) teacher trustee shall be elected annually for a four-year term.
The retired teacher trustee shall be elected every four (4) years. The chief state
school officer and the State Treasurer are considered ex officio members of
the board of trustees and may designate in writing a person to represent them
at board meetings. (c) Elective trustees shall not serve more than three (3) consecutive four (4) year terms. An elective trustee who has served three (3) consecutive terms may be
elected again after an absence of four (4) years from the board of trustees. (2) A member, retired member, or designated beneficiary may appeal the retirement system's decisions that materially affect the amount of service retirement allowance,
amount of service credit, eligibility for service retirement, or eligibility for
survivorship benefits to which that member, retired member, or designated
beneficiary claims to be entitled. All appeals must be in writing and filed with the
retirement system within thirty (30) days of the claimant's first notice of the
retirement system's decision. For purposes of this section, notice shall be complete
and effective upon the date of mailing of the retirement system's decision to the
claimant at the claimant's last known address. Failure by the claimant to file a
written appeal with the retirement system within the thirty (30) day period shall
result in the decision of the retirement system becoming permanent with the effect
of a final and unappealable order. Appeals may include a request for an
administrative hearing which shall be conducted in accordance with the provisions
of KRS Chapter 13B. The board of trustees may establish an appeals committee
whose members shall be appointed by the chairperson and who shall have the
authority to act upon the report and recommendation of the hearing officer by
issuing a final order on behalf of the full board of trustees. A member, retired
member, or designated beneficiary who has filed a timely, written appeal of a
decision of the retirement system may, following the administrative hearing and
issuance of the final order by the board of trustees, appeal the final order of the
board of trustees to the Franklin Circuit Court in accordance with the provisions of
KRS Chapter 13B. (3) The board of trustees shall establish a formal trustee education program for all trustees of the board. The program shall include but not be limited to the following:
(a) A required orientation program for all new trustees to the board. The orientation program shall include training on:
1. Benefits and benefits administration; 2. Investment concepts, policies, and current composition and
administration of retirement system investments; 3. Laws, bylaws, and administrative regulations pertaining to the
retirement system and to fiduciaries; and 4. Actuarial and financial concepts pertaining to the retirement system. If a trustee fails to complete the orientation program within one (1) year from
the beginning of his or her first term on the board, the retirement system shall
withhold payment of the per diem and travel expenses due to the board
member under KRS 161.290 until the trustee has completed the orientation
program; (b) Annual required training for trustees on the administration, benefits, financing, and investing of the retirement system. If a trustee fails to complete
the annual required training during the calendar or fiscal year, the retirement
system shall withhold payment of the per diem and travel expenses due to the
board member under KRS 161.290 until the board member has met the annual
training requirements; and (c) The retirement system shall incorporate by reference in an administrative regulation, pursuant to KRS 13A.2251, the trustee education program. (4) In order to improve public transparency regarding the administration of the system, the board of trustees shall adopt a best practices model by posting the following
information to the retirement system's Web site and shall make available to the
public:
(a) Meeting notices and agendas for all meetings of the board. Notices and agendas shall be posted to the retirement system's Web site at least seventy-
two (72) hours in advance of the board or committee meetings, except in the
case of special or emergency meetings as provided by KRS 61.823; (b) The Comprehensive Annual Financial Report with the information as follows: 1. A general overview and update on the retirement system by the
executive secretary; 2. A listing of the board of trustees; 3. A listing of key staff; 4. An organizational chart; 5. Financial information, including a statement of plan net assets, a
statement of changes in plan net assets, an actuarial value of assets, a
schedule of investments, a statement of funded status and funding
progress, and other supporting data; 6. Investment information, including a general overview, a list of the
retirement system's professional consultants, a total return on retirement
system investments over a historical period, an investment summary,
contracted investment management expenses, transaction commissions,
and a schedule of investments; 7. The annual actuarial valuation report on the pension benefit and the
medical insurance benefit; and 8. A general statistical section, including information on contributions,
benefit payouts, and retirement system demographic data; (c) All external audits;
(d) All board minutes or other materials that require adoption or ratification by the board of trustees. The items listed in this paragraph shall be posted within
seventy-two (72) hours of adoption or ratification of the board; (e) All bylaws, policies, or procedures adopted or ratified by the board of trustees;
(f) The retirement system's summary plan description;
(g) The retirement system's law book;
(h) A listing of the members of the board of trustees and membership on each committee established by the board, including any investment committees; (i) All investment holdings and commissions for each fund administered by the board. The board shall update the list of holdings and commissions on a
quarterly basis for fiscal years beginning on or after July 1, 2008; and (j) An update of investment returns, asset allocations, and the performance of the funds against benchmarks adopted by the board for each fund and for each
asset class administered by the board. The update shall be posted on a
quarterly basis for fiscal years beginning on or after July 1, 2008. (5) Notwithstanding the requirements of subsection (4) of this section, the retirement system shall not be required to furnish information that is protected under KRS
161.585, exempt under KRS 61.878, or that, if disclosed, would compromise the
retirement system's ability to competitively invest in real estate or other asset classes
or to competitively negotiate vendor fees. (6) For any benefit improvements the General Assembly has authorized the board of trustees to establish under KRS 161.220 to 161.716 and that require formal
adoption by the board, the board shall establish the benefits by promulgation of
administrative regulations in accordance with KRS Chapter 13A. Effective: June 27, 2008
History: Amended 2008 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 30, effective June 27, 2008. -- Amended 2002 Ky. Acts ch. 275, sec. 4, effective July 1, 2002. -- Amended
2000 Ky. Acts ch. 498, sec. 6, effective July 1, 2000. -- Amended 1990 Ky. Acts
ch. 476, Pt. IV, sec. 244, effective July 13, 1990. -- Amended 1982 Ky. Acts ch. 326,
sec. 3, effective July 1, 1982. -- Amended 1974 Ky. Acts ch. 395, sec. 2, effective
July 1, 1974. -- Amended 1972 Ky. Acts ch. 82, sec. 3. -- Recodified 1942 Ky. Acts
ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4506b-5. Legislative Research Commission Note (6/27/2008). 2008 (1st Extra Sess.) Ky. Acts ch. 1, sec. 44, provides "The provisions of...subsection (1)(c) of Section 30 of this Act (this statute) that reduce the term limits of elected or appointed members of the
board of trustees of the...Kentucky Teachers' Retirement System shall apply to terms
of office beginning after July 1, 2008." Legislative Research Commission Note (6/27/2008). The Reviser of Statutes has altered the numbering of subsection (3)(a) of this statute from the way it appeared in
2008 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 30, under the authority of KRS
7.136(1)(c).