About KRS

Kentucky Retirement Systems is responsible for the investment of funds and administration of benefits for over 267,000 state and local government employees in the Commonwealth of Kentucky. These employees include state employees, state police officers, city and county employees, as well as nonteaching staff of local school boards and regional universities.

Quick Facts about KRS

• The Kentucky Retirement Systems administers the Kentucky Employees Retirement System (KERS), County Employees Retirement System (CERS) and State Police Retirement System (SPRS).
• KERS, CERS and SPRS are "qualified" public defined benefit plans under Section 401(a) of the Internal Revenue Code. Defined Benefit plans pay benefits based on a formula, while Defined Contribution plans (such as a 401(k) plan) pay benefits based on contributions and earnings on those contributions.
• A nine-member Board of Trustees administers the systems: two trustees elected by KERS members; two trustees elected by CERS members; one trustee elected by SPRS members; three trustees appointed by the Governor; and the Secretary of the state Personnel Cabinet. One of the trustees appointed by the Governor must be knowledgeable about the impact of pensions on local governments. Elected trustees may serve no more than three terms consecutively.
• The Board appoints the Executive Director to oversee administration.
• The Kentucky Retirement Systems operates on a fiscal year (plan year) beginning July 1, and ending June 30.

Kentucky Retirement Systems Plan Funding

• Employees in nonhazardous positions contribute 5% of their salary. Hazardous duty employees contribute 8% of their salary. The employee contribution rate is set by statute.
• Employers contribute at the rate determined by the Board of Trustees to be necessary for the actuarial soundness of the retirement systems as required by KRS 61.565. The employer rate is reviewed annually following the valuation by a consulting actuary.
• All funds are invested in accordance with Kentucky law and Board policies. The Board is governed by the "Prudent Person" rule and must invest the funds solely in the interests of the members and beneficiaries of the retirement systems.
• An annual audit is conducted to ensure proper accounting procedures. An annual actuarial valuation is performed to assure that the contribution rates are sufficient to fund the benefits. Studies are conducted every five years to determine if actuarial assumptions reasonably reflect the actual experience of the retirement systems.