Kentucky Statutes 67A.580 – Accounts and records — Reserve accounts
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(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 deficiency in this reserve shall be removed by an increase in the amount of government’s contributions for future membership service.
Effective: March 14, 2013
History: Amended 2013 Ky. Acts ch. 7, sec. 16, effective March 14, 2013. — 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.
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.
Terms Used In Kentucky Statutes 67A.580
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
(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 deficiency in this reserve shall be removed by an increase in the amount of government’s contributions for future membership service.
Effective: March 14, 2013
History: Amended 2013 Ky. Acts ch. 7, sec. 16, effective March 14, 2013. — 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.