90.410 Pension fund in cities of the third class -- Increase in benefits -- Coverage provided in County Employees Retirement System after August 1, 1988.

Loading PDF...

90.410 Pension fund in cities of the third class -- Increase in benefits -- Coverage provided in County Employees Retirement System after August 1, 1988. (1) Any city of the third class adopting a civil service plan under KRS 90.310 may provide by ordinance for the creation and maintenance of a pension fund for the benefit of employees under civil service, and may assess monthly such amount or percent of the salary of employees as may be equitably determined on a fair actuarial basis, not to exceed five percent (5%) of the monthly salary of any employee. The city legislative body shall contribute city revenues to the fund which shall be not less than the contributions of the employees. (2) The city may create a board for the pension fund and designate trustees of that board, and may fix the powers of trustees, determine the eligibility of employees or their dependents to a pension or other benefit, and may provide a monthly allowance for employees eligible for a pension, not to exceed one-half (1/2) of the monthly salary of any employee at the time of his retirement. (3) In order to adjust retirement benefits to the purchasing power of the dollar, the city may annually provide an increase in benefits paid pursuant to this section. The city may provide an increase of any amount up to the increase in the consumer price index calculated pursuant to KRS 64.527, but in no case shall the annual increase exceed five percent (5%). The city may grant the first increase in 1990. (4) When any city of the third class adopts an ordinance under this section for the creation of a pension fund, picks up employee contributions pursuant to KRS 65.155, or accepts from its employees a portion of their wages and contributes city funds therefor, an inviolable contract shall be created between the city as employer and its employees, and the city and its employees shall continue to operate under KRS 90.310 to 90.390 and the adopting ordinance, except that employees, pursuant to subsection (5) of this section, may choose to participate in the County Employees Retirement System. A repeal of that ordinance by the city shall in no wise affect such employees unless by the mutual consent of the city and an employee or employees. (5) After August 1, 1988, no new pension fund shall be created pursuant to this section, and cities which were covered by this section on or prior to August 1, 1988, shall participate in the County Employees Retirement System effective August 1, 1988. Any city which provided a pension plan for its employees on or prior to August 1, 1988, shall place employees hired after August 1, 1988, in the County Employees Retirement System. The board shall offer employees hired on or prior to August 1, 1988, membership in the County Employees Retirement System under the alternate participation plan as described in KRS 78.530(3), but such employees may elect to retain coverage under this section. Effective: July 13, 1990 History: Amended 1990 Ky. Acts ch. 118, sec. 3, effective July 13, 1990. -- Amended 1988 Ky. Acts ch. 11, sec. 9, effective July 15, 1988. -- Amended 1984 Ky. Acts ch. 177, sec. 9, effective July 13, 1984; and ch. 192, sec. 6, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 166, sec. 47, effective July 15, 1982; and ch. 297, sec. 6, effective July 15, 1982. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 3480e-2, 3480e-10.