<br><br>61.701 Kentucky Retirement Systems insurance trust fund -- Purpose -- <br>Administration -- Participation, regulation, and termination. <br>(1) (a) There is hereby created and established a trust fund to be known as "Kentucky <br>Retirement Systems insurance trust fund." All assets received in the trust fund <br>shall be deemed trust funds to be held and applied solely as provided in this <br>section. Assets of the trust fund shall not be used for any other purpose and <br>shall not be used to pay the claims of creditors or any individual, person, or <br>employer participating in the Kentucky Employees Retirement System, <br>County Employees Retirement System, or State Police Retirement System. <br>(b) The trust fund is intended to be established as a trust exempt from taxation <br>under 26 U.S.C. sec. 115. <br>(2) The trust fund is created for the purpose of providing a trust separate from the <br>retirement funds. Trust fund assets are dedicated for use for health benefits as <br>provided in KRS 61.702, and as permitted under 26 U.S.C. secs. 105 and 106, to <br>retired recipients and employees of employers participating in the Kentucky <br>Employees Retirement System, County Employees Retirement System, and State <br>Police Retirement System, and to certain of their dependents or beneficiaries, <br>including but not limited to qualified beneficiaries as described in 42 U.S.C. secs. <br>300bb-1 et seq. <br>(3) The trust fund shall be administered by the board of trustees of the Kentucky <br>Retirement Systems and the board shall serve as trustees of the fund. The board <br>shall manage the assets of the fund in the same manner in which it administers the <br>retirement funds, except that separate accounting and financial reporting shall be <br>maintained for the trust fund. <br>(4) In addition to the requirements of subsection (2) of this section, the employers <br>participating in the trust fund are limited to the Commonwealth, political <br>subdivisions of the Commonwealth, and entities whose income is exempt from <br>taxation under 26 U.S.C. sec. 115. No other entity may participate in the trust fund. <br>(5) If the trust fund is terminated, the assets in the trust fund may revert, after the <br>payment of all liabilities, to the participating employers as determined by the board <br>of trustees. <br>(6) The board of trustees may adopt regulations and procedures and take all action <br>necessary and appropriate to provide that the income of the trust fund is exempt <br>from taxation under Title 26 of United States Code. <br>(7) The establishment of Kentucky Retirement Systems insurance trust fund shall not <br>diminish or expand the rights of any recipients, employees, or dependents to health <br>benefits. <br>Effective: June 25, 2009 <br>History: Amended 2009 Ky. Acts ch. 77, sec. 21, effective June 25, 2009. -- Amended <br>2004 Ky. Acts ch. 36, sec. 29, effective July 13, 2004. -- Amended 2002 Ky. Acts <br>ch. 52, sec. 15, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 385, sec. 27, <br>effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 351, sec. 1, effective July 15, <br>1998. -- Amended 1980 Ky. Acts ch. 97, sec. 3, effective July 15, 1980. -- Created <br>1978 Ky. Acts ch. 311, sec. 8, effective June 17, 1978. <br><br>