Kentucky Statutes 18A.245 – Board of trustees — Membership, terms, meetings — Powers — Executive director — Annual financial report
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(1) The authority shall be administered by a board of trustees composed of seven (7)
members, who shall be as follows:
(a) Secretary, Finance and Administration Cabinet, ex officio; (b) Secretary of personnel, ex officio;
(c) The state controller, ex officio;
(d) The State Treasurer, ex officio; and
(e) Three (3) at-large members appointed by the Governor, who do not have a conflict of interest as provided by KRS § 18A.262, one (1) of whom shall have at least five (5) years of investment or banking experience and one (1) of whom shall be a representative of a nonstate government employer.
(2) The members of the board appointed by the Governor shall serve for a period of four (4) years and the ex officio members of the board shall serve only for the period of their term of office. Each ex officio member may designate a proxy by written notice to the authority prior to call of order of each meeting, and the proxy shall be entitled to participate as a full voting member.
(3) Any vacancy which may occur shall be filled in the same manner provided for the selection of the particular member for a full term. Vacancies shall be filled for the unexpired term only.
(4) Membership on the board of trustees shall not be incompatible with any other office unless a constitutional incompatibility exists, and no member shall be subject to removal from office, except upon conviction of a felony, or of a misdemeanor involving moral turpitude.
(5) Board members who do not otherwise receive a salary or compensation from the State Treasury shall receive a per diem of one hundred dollars ($100) for each day they are in session or on official duty, and they shall be reimbursed for their actual and necessary expenses in accordance with state administrative regulations and standards applicable to state employees.
(6) The board shall meet at least once in each quarter of the year, and may meet in special session upon the call of the chairman. It shall elect a chairman and a vice chairman. A majority of the members shall constitute a quorum, and all actions taken by the board shall be by affirmative vote of a majority of the members present.
(7) The authority shall be attached to the Personnel Cabinet for administrative purposes only. The board may take but is not limited to the following actions:
(a) Appoint such employees as it deems necessary and fix the compensation for all employees of the board, subject to the approval of the secretary. The authority shall be headed by an executive director who shall be appointed by the board of directors of the authority without the limitations imposed by KRS
12.040 and KRS Chapter 18A. The executive director of the authority and employees appointed by the board shall serve at its will and pleasure. All
other staff of the authority shall be employed under KRS § 18A.005 to KRS § 18A.200; (b) Require such employees as it thinks proper to execute bonds for the faithful
performance of their duties;
(c) Establish a system of accounting;
(d) Contract for such services as may be necessary for the operation or administration of deferred compensation plans authorized in KRS § 18A.230 to
18A.275, including annual audits;
(e) Do all things, take all actions, and adopt plans for participation consistent with federal law and with the provisions of KRS § 18A.230 to KRS § 18A.275, including but not limited to:
1. Amending the board’s plan for the Kentucky Public Employees 401(k) Deferred Compensation Plan or the Kentucky Employees 457 Deferred Compensation Plan, or both such plans, to adopt, maintain, and terminate a deemed IRA program under Internal Revenue Code Section
408;
2. Amending the board’s plan for the Kentucky Public Employees 401(k) Deferred Compensation Plan to adopt, maintain, and terminate a qualified Roth contribution program under Internal Revenue Code Section 402A; and
3. Adopting, maintaining, and terminating an Internal Revenue Code
Section 403(b) plan for qualified employees; and
(f) Contract with persons or companies duly licensed by the state of Kentucky and applicable federal regulatory agencies, at the cost of the trust fund or individual participant accounts, to provide investment advice and financial planning to participants in the plans, with respect to their selection of investments. The board may promulgate administrative regulations for provision of financial planning to participants in the plans.
(8) The Attorney General, or an assistant designated by him, may act as legal adviser and attorney for the board. The board may also appoint legal counsel in accordance with KRS Chapter 12.
(9) The board shall prepare an annual financial report showing all receipts, disbursements, assets, and liabilities and shall submit a copy to the Governor and the Legislative Research Commission. All board meetings and records shall be open for inspection by the public.
Effective: June 29, 2021
History: Amended 2021 Ky. Acts ch. 102, sec. 40, effective June 29, 2021; and repealed, reenacted, and amended 2021 Ky. Acts ch. 111, sec. 2, effective June 29,
2021. — Amended 2019 Ky. Acts ch. 153, sec. 1, effective June 27, 2019. — Amended 2018 Ky. Acts ch. 107, sec. 84, effective July 14, 2018. — Amended 2012
Ky. Acts ch. 10, sec. 5, effective July 12, 2012. — Amended 2008 Ky. Acts ch. 181, sec. 3, effective July 15, 2008. — Amended 2002 Ky. Acts ch. 123, sec. 2, effective July 15, 2002. — Amended 1998 Ky. Acts ch. 154, sec. 50, effective July 15, 1998. — Amended 1994 Ky. Acts ch. 496, sec. 25, effective July 15, 1994. — Amended 1988
Ky. Acts ch. 154, sec. 1, effective July 15, 1988. — Amended 1984 Ky. Acts ch. 234,
sec. 3, effective July 13, 1984. — Repealed, reenacted, and amended as KRS
18A.245, 1982 Ky. Acts ch. 448, sec. 49, effective July 15, 1982. — Created 1974
Ky. Acts ch. 143, sec. 5.
Formerly codified as KRS § 18.540.
Legislative Research Commission Note (6/29/2021). This statute was amended by 2021
Ky. Acts ch. 102 and repealed, reenacted, and amended by 2021 Ky. Acts ch. 111. The amendments do not appear to be in conflict and have been codified together.
Legislative Research Commission Note (12/13/2018). On December 13, 2018, the
Kentucky Supreme Court ruled that the passage of 2018 SB 151 (2018 Ky. Acts ch.
107), did not comply with the three-readings rule of Kentucky Constitution Section
46 and that the legislation is, therefore, constitutionally invalid and declared void. That ruling applies to changes made to this statute in that Act.
members, who shall be as follows:
Terms Used In Kentucky Statutes 18A.245
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Attorney: means attorney-at-law. See Kentucky Statutes 446.010
- Board: means the Personnel Board created by KRS §. See Kentucky Statutes 18A.005
- Cabinet: means the Personnel Cabinet provided for in KRS §. See Kentucky Statutes 18A.005
- Contract: A legal written agreement that becomes binding when signed.
- Conviction: A judgement of guilt against a criminal defendant.
- Directors: when applied to corporations, includes managers or trustees. See Kentucky Statutes 446.010
- Ex officio: Literally, by virtue of one's office.
- Federal: refers to the United States. See Kentucky Statutes 446.010
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Quorum: The number of legislators that must be present to do business.
- Secretary: means the secretary of the Personnel Cabinet as provided for in KRS
18A. See Kentucky Statutes 18A.005 - State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
- Statute: A law passed by a legislature.
- Year: means calendar year. See Kentucky Statutes 446.010
(a) Secretary, Finance and Administration Cabinet, ex officio; (b) Secretary of personnel, ex officio;
(c) The state controller, ex officio;
(d) The State Treasurer, ex officio; and
(e) Three (3) at-large members appointed by the Governor, who do not have a conflict of interest as provided by KRS § 18A.262, one (1) of whom shall have at least five (5) years of investment or banking experience and one (1) of whom shall be a representative of a nonstate government employer.
(2) The members of the board appointed by the Governor shall serve for a period of four (4) years and the ex officio members of the board shall serve only for the period of their term of office. Each ex officio member may designate a proxy by written notice to the authority prior to call of order of each meeting, and the proxy shall be entitled to participate as a full voting member.
(3) Any vacancy which may occur shall be filled in the same manner provided for the selection of the particular member for a full term. Vacancies shall be filled for the unexpired term only.
(4) Membership on the board of trustees shall not be incompatible with any other office unless a constitutional incompatibility exists, and no member shall be subject to removal from office, except upon conviction of a felony, or of a misdemeanor involving moral turpitude.
(5) Board members who do not otherwise receive a salary or compensation from the State Treasury shall receive a per diem of one hundred dollars ($100) for each day they are in session or on official duty, and they shall be reimbursed for their actual and necessary expenses in accordance with state administrative regulations and standards applicable to state employees.
(6) The board shall meet at least once in each quarter of the year, and may meet in special session upon the call of the chairman. It shall elect a chairman and a vice chairman. A majority of the members shall constitute a quorum, and all actions taken by the board shall be by affirmative vote of a majority of the members present.
(7) The authority shall be attached to the Personnel Cabinet for administrative purposes only. The board may take but is not limited to the following actions:
(a) Appoint such employees as it deems necessary and fix the compensation for all employees of the board, subject to the approval of the secretary. The authority shall be headed by an executive director who shall be appointed by the board of directors of the authority without the limitations imposed by KRS
12.040 and KRS Chapter 18A. The executive director of the authority and employees appointed by the board shall serve at its will and pleasure. All
other staff of the authority shall be employed under KRS § 18A.005 to KRS § 18A.200; (b) Require such employees as it thinks proper to execute bonds for the faithful
performance of their duties;
(c) Establish a system of accounting;
(d) Contract for such services as may be necessary for the operation or administration of deferred compensation plans authorized in KRS § 18A.230 to
18A.275, including annual audits;
(e) Do all things, take all actions, and adopt plans for participation consistent with federal law and with the provisions of KRS § 18A.230 to KRS § 18A.275, including but not limited to:
1. Amending the board’s plan for the Kentucky Public Employees 401(k) Deferred Compensation Plan or the Kentucky Employees 457 Deferred Compensation Plan, or both such plans, to adopt, maintain, and terminate a deemed IRA program under Internal Revenue Code Section
408;
2. Amending the board’s plan for the Kentucky Public Employees 401(k) Deferred Compensation Plan to adopt, maintain, and terminate a qualified Roth contribution program under Internal Revenue Code Section 402A; and
3. Adopting, maintaining, and terminating an Internal Revenue Code
Section 403(b) plan for qualified employees; and
(f) Contract with persons or companies duly licensed by the state of Kentucky and applicable federal regulatory agencies, at the cost of the trust fund or individual participant accounts, to provide investment advice and financial planning to participants in the plans, with respect to their selection of investments. The board may promulgate administrative regulations for provision of financial planning to participants in the plans.
(8) The Attorney General, or an assistant designated by him, may act as legal adviser and attorney for the board. The board may also appoint legal counsel in accordance with KRS Chapter 12.
(9) The board shall prepare an annual financial report showing all receipts, disbursements, assets, and liabilities and shall submit a copy to the Governor and the Legislative Research Commission. All board meetings and records shall be open for inspection by the public.
Effective: June 29, 2021
History: Amended 2021 Ky. Acts ch. 102, sec. 40, effective June 29, 2021; and repealed, reenacted, and amended 2021 Ky. Acts ch. 111, sec. 2, effective June 29,
2021. — Amended 2019 Ky. Acts ch. 153, sec. 1, effective June 27, 2019. — Amended 2018 Ky. Acts ch. 107, sec. 84, effective July 14, 2018. — Amended 2012
Ky. Acts ch. 10, sec. 5, effective July 12, 2012. — Amended 2008 Ky. Acts ch. 181, sec. 3, effective July 15, 2008. — Amended 2002 Ky. Acts ch. 123, sec. 2, effective July 15, 2002. — Amended 1998 Ky. Acts ch. 154, sec. 50, effective July 15, 1998. — Amended 1994 Ky. Acts ch. 496, sec. 25, effective July 15, 1994. — Amended 1988
Ky. Acts ch. 154, sec. 1, effective July 15, 1988. — Amended 1984 Ky. Acts ch. 234,
sec. 3, effective July 13, 1984. — Repealed, reenacted, and amended as KRS
18A.245, 1982 Ky. Acts ch. 448, sec. 49, effective July 15, 1982. — Created 1974
Ky. Acts ch. 143, sec. 5.
Formerly codified as KRS § 18.540.
Legislative Research Commission Note (6/29/2021). This statute was amended by 2021
Ky. Acts ch. 102 and repealed, reenacted, and amended by 2021 Ky. Acts ch. 111. The amendments do not appear to be in conflict and have been codified together.
Legislative Research Commission Note (12/13/2018). On December 13, 2018, the
Kentucky Supreme Court ruled that the passage of 2018 SB 151 (2018 Ky. Acts ch.
107), did not comply with the three-readings rule of Kentucky Constitution Section
46 and that the legislation is, therefore, constitutionally invalid and declared void. That ruling applies to changes made to this statute in that Act.