The city shall make current contributions to the fund on an actuarially funded basis, toward the annuities and benefits herein provided. These contributions shall be equal to the sum of the following:
(1) An annual amount resulting from the application of a rate percent of salaries of active members, representing the present value of the actuarial reserve requirements for membership service, for service retirement annuity, disability retirement annuity, and annuities to widows and children, and the one (1) year term premium for the city’s liability for death benefits, after applying the contributions by the active members. Such rate percent shall be fixed by the board at least once every three (3) to five (5) years after completion of the actuarial valuation of the fund as required by KRS § 65.156, and shall be in effect until the next actuarial valuation is completed by the fund. For the first three (3) fiscal years of operation of the fund, the city’s rate of contribution shall be at least twelve percent (12%) of the salaries of the active members participating in the fund.

Terms Used In Kentucky Statutes 95.868

  • 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.
  • City: includes town. See Kentucky Statutes 446.010
  • Year: means calendar year. See Kentucky Statutes 446.010

(2) An amount resulting from the application of a rate percent of the salaries of active members which will provide each year regular interest on the remaining liability for prior service.
Effective: July 15, 2016
History: Amended 2016 Ky. Acts ch. 31, sec. 29, effective July 15, 2016. — Amended
1982 Ky. Acts ch. 297, sec. 8, effective July 15, 1982. — Created 1956 Ky. Acts ch.
16, sec. 18, effective July 1, 1956.