Kentucky Revised Statutes Title IV. Judicial Branch § 21.525.Contributions by state; normal cost and actuarially accrued liability contributions; actuarially accrued liability contribution; employer costs for hybrid cash balance plan

1. The entry age normal cost funding method;

2. An asset smoothing method that smooths investment gains and losses over a five (5) year period; and

3. Other funding methods and assumptions established by the board.

1. The total unfunded actuarially accrued liability shall be amortized over a closed period of twenty (20) years beginning with the 2023 actuarial valuation;

2. Any increase or decrease in the unfunded actuarially accrued liability occurring after the completion of the 2023 actuarial valuation shall be amortized over a closed period of twenty (20) years beginning with the actuarial valuation in which the increase or decrease in the unfunded actuarially accrued liability is recognized. An increase or decrease in the unfunded actuarially accrued liability may result from, but not be limited to, legislative changes to benefits, changes in actuarial methods or assumptions, or actuarial gains or losses;

3. If the annual valuation determines that the plan has surplus actuarial assets, the prior amortization bases established under subparagraph 2. of this paragraph shall be eliminated, and one (1) base equal to the amount of surplus actuarial assets shall be established and amortized over an open period of twenty (20) years; and

4. The actuarially accrued liability contribution shall be determined by actuarial methods consistent with the methods prescribed for determining the normal cost contribution, except that beginning with the 2023 actuarial valuation the level dollar amortization method shall be utilized.