FINANCE AND ADMINISTRATION CABINET

Kentucky Teachers' Retirement System

(Amendment)

      102 KAR 1:160. Annuity tables.

      RELATES TO: KRS 161.630, 161.705, 161.400

      STATUTORY AUTHORITY: KRS 161.310

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 161.630 provides that a member of the Teachers' Retirement System, retiring for service, may elect the actuarial equivalent of annuity payments provided by KRS 161.620 through choice of an approved optional benefit. In calculating these benefits, a series of actuarial tables are prepared. This administrative regulation establishes the process for adoption of the actuarial tables to be used for this purpose. Under KRS 161.400, actuarial factors may be approved by the board of trustees without the necessity of an administrative regulation.

      Section 1. The annuity values and option factor tables for use in calculating benefits are the [1983] tables prepared by the actuary at the direction of the Board of Trustees and adopted by the Board of Trustees by resolution.

Section 2. Incorporation by reference. (1) "Annuity Table", (2009), is incorporated by reference.

      (2) This material may be inspected, copied or obtained, subject to applicable copyright law, at Kentucky Teachers' Retirement System, 479 Versailles Road, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 5 p.m. [The 1983 annuity tables are hereby incorporated by reference. The tables were approved by the Board of Trustees for use effective September 1, 1983. These tables are available for inspection at the Teachers' Retirement System, 479 Versailles Road, Frankfort, Kentucky 40601.]

BARBARA G. STERRETT, Chair

      APPROVED BY AGENCY: December 21, 2009

      FILED WITH LRC: January 15, 2010 at noon

PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall be held on February 23, 2010, at 9 a.m. at the Kentucky Teachers' Retirement System, 479 Versailles Road, Frankfort, Kentucky. Individuals interested in being heard at this hearing shall notify this agency in writing by February 16, 2010, five working days prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by this date, the heating may be cancelled. This hearing is open to the public. Any person who wishes to be heard will be given the opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted until March 1, 2010. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.

      CONTACT PERSON: Robert B. Barnes, Kentucky Teachers' Retirement System, 479 Versailles Road, Frankfort, Kentucky 40601, phone (502) 848-8508, fax (502) 848-8508.

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT

Contact Person: Robert B. Barnes

      (1) Provide a brief summary of:

      (a) What this administrative regulation does: This administrative regulation establishes the process for adoption of the actuarial tables utilized for calculating benefits to be paid to members who opt to receive the actuarial equivalent of their annuity payments.

      (b) The necessity of this administrative regulation: This administrative regulation is necessary to ensure proper adoption of actuarial tables.

      (c) How this administrative regulation conforms to the content of the authorizing statutes: This administrative regulation conforms to the content of the authorizing statutes by ensuring accurate dispersal of the retirement system's funds.

      (d) How this administrative regulation currently assists or will assist in the effective administration of the statutes: This administrative regulation will assist in the effective administration of the statutes by delineating the correct actuarial tables to be utilized by the retirement system.

      (2) If this is an amendment to an existing administrative regulation, provide a brief summary of:

      (a) How the amendment will change this existing administrative regulation: The amendment incorporates the provisions that actuarial factors may be approved by the board of trustees without the filing a regulation and that the board may, by resolution, approve the values and factor tables for calculation of benefits.

      (b) The necessity of the amendment to this administrative regulation: To incorporate the provisions that actuarial factors may be approved by the board of trustees without the filing a regulation and that the board may, by resolution, approve the values and factor tables for calculation of benefits.

      (c) How the amendment conforms to the content of the authorizing statutes: The amendment clarifies that actuarial factors may be approved by the board of trustees without the filing a regulation and that the board may, by resolution, approve the values and factor tables for calculation of benefits.

      (d) How the amendment will assist in the effective administration of the statues: The amendment clarifies that actuarial factors may be approved by the board of trustees without the filing a regulation and that the board may, by resolution, approve the values and factor tables for calculation of benefits.

      (3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: This amendment applies to members who elect to receive the actuarial equivalent of their annuity payments.

      (4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:

      (a) List the actions that each of the regulated entities identified in question (3) will have to comply with this administrative regulation or amendment: The members will not have to take any overt action other than choosing the actuarial equivalent of their annuity payments.

      (b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): There will be no cost to the members.

      (c) As a result of compliance, what benefits will accrue to the entities identified in question (3): Members will be able to obtain the actuarial equivalent of their annuity payments.

      (5) Provide an estimate of how much it will cost to implement this administrative regulation:

      (a) Initially: There is no cost to implement this regulation.

      (b) On a continuing basis: There is no continuing cost.

      (6) What is the source of funding to be used for the implementation and enforcement of this administrative regulation: Administrative expenses of the retirement system are paid by trust and agency funds.

      (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment: There is no increase in fees or funding required.

      (8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees: This regulation does not establish any fees or directly or indirectly increase any fees.

      (9) TIERING: Is tiering applied? Tiering is not applied, as all members are treated the same.

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

      1. Does this administrative regulation relate to any program, service, or requirements of a state or local government (including cities, counties, fire departments, or school districts)? Yes

      2. What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? Teachers' Retirement System.

      3. Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation. KRS 161.310, 161. 400, 161.630, 161.705

      4. Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.

      (a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year?

      (b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years?

      (c) How much will it cost to administer this program for the first year?

      (d) How much will it cost to administer this program for subsequent years?

      Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.

      Revenues (+/-): N/A

      Expenditures (+/-): N/A

      Other Explanation: