<br><br>21.450 Funding of benefits -- Trustee -- Duties of board or investment adviser -- <br>Accrual of benefits. <br>(1) The benefits provided by KRS 21.350 to 21.510 to be paid shall be funded through <br>contract with a reputable life insurance company authorized to do business in this <br>state, or through investment and reinvestment of funds in securities which, at the <br>time of making the investment, are by law permitted for the investment of funds by <br>fiduciaries in this state, or through a combination of such methods. To the extent <br>that funding is provided through insurance contract, no contributions, payments or <br>premiums shall be subject to any tax on insurance premiums or annuity <br>considerations. The investment committee for the judicial retirement fund shall be <br>trustee of any and all funds contributed or appropriated to the retirement system, <br>and shall have sole authority to make insurance contracts or investments. <br>(2) The board members or any investment adviser shall discharge their duties with <br>respect to the funds of the retirement system solely in the interest of the members <br>and beneficiaries and: <br>(a) For the exclusive purposes of providing benefits to members and their <br>beneficiaries and defraying reasonable expenses of administering the plan; <br>(b) With the care, skill, prudence, and diligence under the circumstances then <br>prevailing that a prudent man acting in a like capacity and familiar with such <br>matters would use in the conduct of an enterprise of a like character and with <br>like aims; and <br>(c) In accordance with the laws, regulations and other instruments governing the <br>funds. <br>(3) Any accrual of benefits provided under this or any other applicable statute shall be <br>no less than the benefit adjustment provided for in KRS 21.405(4) from the date of <br>the last establishment of that benefit. <br>Effective: July 14, 2000 <br>History: Amended 2000 Ky. Acts ch. 448, sec. 4, effective July 14, 2000. -- Amended <br>1984 Ky. Acts ch. 111, sec. 169, effective July 13, 1984. -- Amended 1980 Ky. Acts <br>ch. 246, sec. 9, effective July 15, 1980. -- Amended 1978 Ky. Acts ch. 384, sec. 6, <br>effective June 17, 1978. -- Created 1960 Ky. Acts ch. 84, Art. III, sec. 11. <br><br>