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AN ACT relating to the Public Pension Oversight Board. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 7A.220 (Effective January 1, 2027) is amended to read as 3
follows: 4
(1) The Public Pension Oversight Board shall be composed of the following twenty-5
five (25)[twenty-three (23)] members: 6
(a) 1. Five (5)[Four (4)] members of the General Assembly appointed by the 7
Speaker of the House of Representatives, one (1) of whom shall be the 8
chair or a vice chair of the House Standing Committee on 9
Appropriations and Revenue and one (1) of whom shall be the chair or 10
a vice chair o f the House Standing Committee on State Government ; 11
and 12
2. Two (2) members of the General Assembly appointed by the Speaker of 13
the House of Representatives, each of whom shall be selected to ensure 14
that representation on the board by House members of the G eneral 15
Assembly is in closer proportion to the representation of each political 16
party in the House of Representatives. 17
The members appointed pursuant to this paragraph shall be appointed in 18
January of each odd -numbered year for a two (2) year term, and the Speaker 19
shall designate one (1) as co-chair of the board; 20
(b) 1. Five (5)[Four (4)] members of the General Assembly ap pointed by the 21
President of the Senate, one (1) of whom shall be the chair or a vice 22
chair of the Senate Standing Committee on Appropriations and Revenue 23
and one (1) of whom shall be the chair or a vice chair of the Senate 24
Standing Committee on State & Local Government; and 25
2. Two (2) members of the General Assembly appointed by the President 26
of the Senate, each of whom shall be selected to ensure that 27
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representation on the board by Senate members of the General 1
Assembly is in closer proportion to the repre sentation of each political 2
party in the Senate. 3
The members appointed pursuant to this paragraph shall be appointed in 4
January of each odd-numbered year for a two (2) year term, and the President 5
shall designate one (1) as co-chair of the board; 6
(c) Two (2) members of the General Assembly appointed by the Minority Floor 7
Leader of the Senate in January of each odd -numbered year for a two (2) year 8
term; 9
(d) Two (2) members of the General Assembly appointed by the Minority Floor 10
Leader of the House of Repres entatives appointed in January of each odd -11
numbered year for a two (2) year term; 12
(e) One (1) individual appointed by the Speaker of the House of Representatives, 13
who shall be certified as a chartered financial analyst (CFA) with at least ten 14
(10) years of investment experience or who shall possess at least ten (10) 15
years of retirement experience as defined by subsection (2) of this section; 16
(f) One (1) individual appointed by the President of the Senate, who shall be 17
certified as a chartered financial anal yst (CFA) with at least ten (10) years of 18
investment experience or who shall possess at least ten (10) years of 19
retirement experience as defined by subsection (2) of this section; 20
(g) The state budget director or his or her designee; 21
(h) The Auditor of Public Accounts or his or her designee; 22
(i) The Attorney General or his or her designee;[ and] 23
(j) The State Treasurer or his or her designee; and 24
(k) One (1) individual[Two (2) individuals] appointed by the Governor, who[one 25
(1) of whom] shall: 26
1. Be certified as a chartered financial analyst (CFA) with at least ten (10) 27
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years of investment experience; or[ and one (1) of whom shall ] 1
2. Possess at least ten (10) years of retirement experience as defined by 2
subsection (2) of this section. 3
(2) For purposes of this section, "retirement experience" means: 4
(a) Experience in retirement or pension plan management; 5
(b) A certified public accountant with relevant experience in retirement or 6
pension plan accounting; 7
(c) An actuary with relevant experience in retirement or pension plan consulting; 8
(d) An attorney licensed to practice law in the Commonwealth of Kentucky with 9
relevant experience in retirement or pension plans;[ or] 10
(e) A current or former university professor whose primary area of emphasis is 11
economics or finance; or 12
(f) A former elected official with relevant experience in retirement or pension 13
plan management or policy. 14
(3) Individuals appointed under subsection (1)(e), (f), and (k)[(j)] of this section shall 15
not: 16
(a) Be a current member of the General Assembly; 17
(b) Be employed by a state agency of the Commonwealth of Kentucky or 18
receiving a contractual payment for services rendered to a state agency of the 19
Commonwealth of Kentucky that would conflict with his or her service to the 20
board; or 21
(c) Serve more than three (3) consecutive four (4) year terms on the board. 22
(4) Any vacancy which may occur in the membership of the board shall be filled within 23
thirty (30) days of the occurrence, in the same manner as the original appointment, 24
and for the balance of the vacated member's term. 25
(5) Individuals appointed under subsecti on (1)(e), (f), and (k)[(j)] of this section shall 26
serve a term of four (4) years. 27
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Section 2. KRS 7A.255 is amended to read as follows: 1
(1) Notwithstanding KRS 21.345 to 21.580, 61.661, 61.870 to 61.884, or 161.585 to 2
the contrary, on or before November 15 following the close of each fiscal year, the 3
state-administered retirement systems shall collectively file a report with the Public 4
Pension Oversight Board that shall include the following information for each 5
member or recipient of a retirement allowance from any of the state -administered 6
retirement systems: 7
(a) A unique identification number for each member or recipient that is created 8
solely for purposes of compiling the report provided by this section and which 9
shall not be the member's Social Security number or personal identification 10
number issued by the systems. For individual members or recipients with 11
multiple accounts in the state-administered retirement systems, all of the state-12
administered retirement systems shall use the same unique identification 13
number; 14
(b) The system or systems in which the member has an account or from which the 15
retired member is receiving a monthly retirement allowance; 16
(c) The status of the member or recipient, including but not limited to whether he 17
or she is a contributing member, a member who is not currently contributing 18
to the systems but has not retired, a retired member, a beneficiary, or a retired 19
member who has returned to work following retirement with an agency 20
participating in the systems; 21
(d) If the individual is a retired member or beneficiary, the annualized monthly 22
retirement allowance that he or she was receiving at the end of the most 23
recently completed fiscal year; and 24
(e) If the individual is a member who has not yet r etired, the estimated annual 25
retirement allowance that he or she is eligible to receive at his or her normal 26
retirement date based upon his or her service credit, final compensation, and 27
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accumulated account balance at the end of the most recently completed fiscal 1
year. 2
Under no circumstances shall the member's name, address, or Social Security 3
number be included in the information required to be reported to the board by this 4
section, nor shall the unique identification number established by subsection (1) of 5
this section be capable of being linked to a specific member's retirement account 6
with a state-administered retirement system. 7
(2) On or before November 15 following the close of each fiscal year, the state -8
administered retirement systems shall report t o the Public Pension Oversight Board 9
the percentage of system assets and managers for which fees and commissions are 10
being reported in accordance with KRS 21.540(4)(m), 61.645(19)(i), and 11
161.250(4)(i). This subsection shall apply on a fiscal year basis be ginning on or 12
after July 1, 2017. 13
(3) On or before November 15, 2017, the state -administered retirement systems shall 14
tender to the Public Pension Oversight Board a copy of their board -adopted 15
investment procurement policy along with certification from the secretary of the 16
Finance and Administration Cabinet that the investment procurement policy meets 17
or does not meet the best practices for investment management procurement. If the 18
board amends its investment procurement policy, it shall tender a copy of it s 19
amended investment procurement policy to the Public Pension Oversight Board 20
within sixty (60) days of adoption along with certification from the secretary of the 21
Finance and Administration Cabinet that the policy meets or does not meet the best 22
practices for investment management procurement. 23
(4) (a) On or before November 15 following the close of each fiscal year, the 24
Kentucky Public Pensions Authority shall report to the Public Pension 25
Oversight Board the number of recipients[individuals] and total paym ents to 26
[members]recipients who are receiving a monthly retirement allowance due 27
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to a member[become]: 1
1. Becoming totally and permanently disabled as a direct result of an act in 2
line of duty as defined in KRS 16.505 or 78.510; 3
2. Becoming[or become] disabled as a result of a duty -related injury as 4
defined in KRS 61.621; 5
3. Dying as a direct result of an act in line of duty as defined in KRS 6
16.505 or 78.510; or 7
4. Dying as a result of a duty-related injury as defined in KRS 61.621. 8
(b) The data shall be broken down by: 9
1. System; 10
2. Benefit type, either disablement or death; and 11
3. Retirement position type, includin g nonhazardous positions, 12
hazardous positions, and, in the case of disablement, [ and for 13
recipients who are drawing a benefit from the disablement of a 14
hazardous member, a nonhazardous member who worked in a] 15
nonhazardous positions[position] that could be certified as [a ]hazardous 16
positions[position] based upon KRS 61.592 or 78.5520 [, and a 17
nonhazardous member who worked in a nonhazardous position that 18
could not be certified as a hazardous position based upon KRS 61.592]. 19
(5) On or before November 15, 2023 , and on or before November 15 every fourth year 20
thereafter, the Department of Kentucky State Police and the Kentucky Public 21
Pensions Authority shall jointly report to the Public Pension Oversight Board on the 22
costs and effectiveness of the program establi shed by KRS 16.583(2)(b)2. and 23
16.584. 24
Section 3. Section 1 of this Act takes effect January 1, 2027. 25