<br><br>61.652 Administration of all excess benefit plans -- Participation in plan -- <br>Determination of benefit amount -- Required contribution of plans. <br>(1) The Kentucky Employees Excess Benefit Plan established in KRS 61.663, the <br>County Employees Excess Benefit Plan established in KRS 78.652, and the State <br>Police Excess Benefit Plan established in KRS 16.568 shall be administered by the <br>board of trustees of the Kentucky Retirement Systems. The board shall have the <br>same authority in its administration as it has in the administration of the Kentucky <br>Employees Retirement System, the County Employees Retirement System, and the <br>State Police Retirement System. <br>(2) The plans shall constitute qualified governmental excess benefit plans as provided <br>in 26 U.S.C. sec. 415(m). <br>(3) All retired members and beneficiaries of the three (3) retirement systems <br>administered by the Kentucky Retirement Systems whose effective retirement dates <br>are July 1, 1998, or after, and whose retirement allowances have been limited by 26 <br>U.S.C. sec. 415 shall be participants in the plans. Each member's participation in the <br>plans shall be determined each fiscal year and will cease for any year in which the <br>retirement allowance is not limited by 26 U.S.C. sec. 415. <br>(4) A participant shall receive a benefit equal to the difference between the retirement <br>allowance otherwise payable from the system prior to any reduction or limitation <br>required by 26 U.S.C. sec. 415 and the actual retirement allowance payable as <br>limited by 26 U.S.C. sec. 415. The benefit shall be subject to withholding for <br>applicable state and federal taxes. The benefit shall be paid in accordance with the <br>retirement payment option selected by the member or beneficiary for the retirement <br>allowance. <br>(5) (a) The board, in accordance with the recommendation of the actuary, shall <br>determine the required contribution for each of the three (3) plans to pay <br>benefits each fiscal year. The required contribution for each of the three (3) <br>plans in each fiscal year shall be the total amount of benefits payable under <br>this section to all participants plus the amount required to pay the <br>administrative expenses of the plan and the employer's share of any <br>employment taxes on the benefits paid from the plan. <br>(b) The required contribution shall be paid by the participating employers. <br>(c) The required contribution for each plan shall be deposited into the separate <br>fund. The plan is intended to be exempt from federal income tax under 26 <br>U.S.C. sec. 115 and 26 U.S.C. sec. 415(m)(1). <br>(d) The benefit liability of each plan shall be determined on a fiscal year basis, <br>and contributions shall not be accumulated to pay benefits in future fiscal <br>years. Any assets of the plans not used to pay benefits in the current fiscal year <br>shall be used for payment of the administrative expenses of the plan for the <br>current or future fiscal years or shall be paid to the appropriate retirement <br>system as an additional employer contribution. <br>(6) The benefits payable from the plans shall be treated in accordance with KRS <br>61.690. <br><br>(7) The board shall promulgate administrative regulations to modify the benefits <br>payable under the plans as necessary for the plans to be qualified under 26 U.S.C. <br>sec. 415(m). <br>(8) The provisions of this section, and any administrative regulations promulgated as a <br>result of this section, shall be applied retroactively to retired members, and <br>beneficiaries, whose effective retirement dates are between July 1, 1998, and July <br>14, 2000. <br>Effective: July 14, 2000 <br>History: Created 2000 Ky. Acts ch. 385, sec. 32, effective July 14, 2000. <br><br>