(A) There was established and is continued under authority of KRS 95.290 a retirement and benefit fund for certain members of the Police Department, their dependents, and beneficiaries which is known as the City of Louisville Policemen's Retirement Fund. In such name all of its business shall be transacted, all of its moneys invested, and all of its accumulated reserves, consisting of cash, securities, and other property, shall be held.
(B) Any pension fund established under the provisions of this subchapter shall be held or distributed for, and only for, any of the following purposes:
(1) Paying pensions under applicable ordinances;
(2) Making payments to the Metro Government for transfer to the County Employees Retirement System for alternate participation pursuant, to KRS 78.530(3)(a) and KRS 78.531(2);
(3) Transferring pension assets through investment contract or other financial instrument for the purpose of amortizing unfunded service liabilities;
(4) Payment from the Metro Government to the County Employees Retirement System for future pension contributions required pursuant to KRS 61.565; and
(5) Payment to the Metro Government of excess funds as provided in subsection (C) of this section.
(C) If police officers elect entry into the County Employees Retirement System and thereby create excess funds over those required to provide for the purposes set forth in subsection (B)(1), (B)(2), and (B)(3) of this section (such as, the payment of pension benefits to the remaining active members of the Policemen's Retirement Fund and to retirees and their survivors and the city's alternate participation liability to the County Employees Retirement System), these excess funds shall be distributed to the Metro Government for use by the Metro Government for any other purpose it may elect, including, but not limited to, the establishment of a reserve for payment under subsection (B)(4) of this section.
(D) (1) After May 1, 1986, each new police officer who would have been granted membership in the Policemen's Retirement Fund shall be a member of the County Employees Retirement System. Each member of the Policemen's Retirement Fund who was hired prior to May 1, 1986, may, on or before the date established by the County Employees Retirement System, choose membership in the County Employees Retirement System (which shall be effective May 1, 1986) or may retain membership in the Policemen's Retirement Fund. Pursuant to the requirement imposed by the County Employees Retirement System, any police officer who elects to transfer into the County Employees Retirement System shall choose membership in the County Employees Retirement System by signing an election form provided by the County Employees Retirement System. The Metro Government shall have the right to require sufficient documentation from each police officer to verify the police officer's election into the County Employees Retirement System. If a police officer fails to verify his or her election to the reasonable satisfaction of the city or if a police officer's benefits in the Policemen's Retirement Fund are pledged, assigned, or otherwise alienated and are not available for distribution to the County Employees Retirement System on the date the Metro Government makes its first payment to the County Employees Retirement System pursuant to KRS 78.530(3)(a) and KRS 78.531(2), the police officer's election into the County Employees Retirement System shall be void and of no effect and no funds shall be transferred from the Policemen's Retirement Fund to the County Employees Retirement System on behalf of the police officer.
(2) When the Metro Government is reasonably satisfied that a police officer has made a valid election into the County Employees Retirement System, the Metro Government shall notify the Board of the name of each police officer who is transferring into the County Employees Retirement System and is withdrawing from the Policemen's Retirement Fund. The Metro Government shall have the right to require the Policemen's Retirement Fund to transfer assets to the Metro Government for payment of all or any portion of the obligation to the County Employees Retirement System for alternate participation pursuant to KRS 78.530(3)(a) and KRS 78.531(2) with respect to those police officers who have made a valid election.
(3) If the Metro Government or the Policemen's Retirement Fund should incur any liability, expense, loss, or cost, including but not limited to attorneys' fees, as a result of the fact that a police officer's benefits in the Policemen's Retirement Fund are pledged, assigned, or otherwise alienated and are not available for distribution to the County Employees Retirement System, the police officer shall indemnify and hold the Metro Government and the Policemen's Retirement Fund harmless for any liability, expense, loss, or cost, including but not limited to attorneys' fees.
(E) (1) The Metro Government elects the alternate participation plan, pursuant to KRS 78.530(3), for police officers who transfer to the County Employees Retirement System. The Metro Government may, at its option, extend the payment period for the cost of alternate participation for a maximum of 20 years with interest to be payable on the outstanding balance at the rate actuarially assumed by the Board of Trustees of the County Employees Retirement System.
(2) In the event the Metro Government decides to defer the payment of its alternate participation liability to the County Employees Retirement System pursuant to KRS 95.290(5), the amount of the alternate participation liability shall be transferred to a separate alternate participation fund within the Policemen's Retirement Fund and all income and principal with respect to this fund shall be reserved for payment to the Metro Government. The Metro Government may use any assets distributed to it from this fund to pay its liability to the County Employees Retirement System for alternate participation or, to the extent the fair market value of the assets in the fund exceeds the city's alternate participation liability to the County Employees Retirement System, the assets may be used by the city for any other purpose it may elect. The Metro Government shall have the right, at any time, to require the Board to liquidate and transfer, or transfer in kind, any or all of the assets in the alternate participation fund for immediate payment to the Metro Government. No less than annually, the Metro Government shall provide an investment program to the Board regarding the investment of the assets in the alternate participation fund.
(F) All police officers who become members of the County Employees Retirement System shall be granted hazardous duty coverage.
(G) Notwithstanding the provisions of KRS 61.565, which relate to the contributions required of participating employers, the Metro Government shall have the right to enter into agreement with its employees or with their respective collective bargaining representatives. This agreement may include, but is not limited to, specifications of what portion of the required employer contribution shall be borne by the Metro Government and what portion shall be borne by the participating employee. This provision in no way modifies the Metro Government's obligation to remit the contributions required by the County Employees Retirement System pursuant to KRS 61.565, whether those contributions are borne by the Metro Government or by its employees.
(H) The Metro Government reserves the right to amend the terms and conditions of its participation in the County Employees Retirement System in accordance with the provisions of KRS 95.290(7).
(I) Pursuant to §§
35.180 through
35.183, the members of the Board shall be indemnified by the Metro Government for any and all claims, liabilities, costs, and expenses incurred by them which result from or arise out of their good faith performance of the duties and obligations imposed by the provisions of
Chapter 36, including without limitation, any and all claims, liabilities, costs, and expenses resulting from or arising out of the Board's following the investment program provided by the Metro Government.
(1999 Lou. Code, § 36.100) (Lou. Ord. No. 91-1973, approved 6-29-1973; Lou. Am. Ord. No. 203-1986, approved 6-26-1986; Lou. Am. Ord. 0157-2002, approved 12-26-2002; Lou. Metro Am. Ord. No. 64-2004, approved 6-3-2004; Lou. Metro Am. Ord. No. 127-2005, approved 8-29-2005)
