Benefit and contribution rates are established by state statute. Per Kentucky Revised Statute 161.250 contribution requirements of the active employees and the participating universities are established and may be amended by the KTRS Board. For the fiscal years ended June 30, 2016 and 2015 employees were required to contribute 8.18% and 7.16%, respectively, of their annual pay for retirement benefits. The University's contractually required contribution rate for the year ended June 30, 2016 and 2015, was 15.86% and 14.84%, respectively, of current employees' salaries, actuarially determined as an amount that, when combined with employee contributions, is expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Contributions to the pension plan from the University were $2,183,786 and $2,436,799 for the years ended June 30, 2016 and 2015, respectively.

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions

At June 30, 2016, the University reported a liability for its proportionate share of the net pension liability that reflected a reduction for State pension support provided to the University. The amount recognized by the University as its proportionate share of the net pension liability, the related State support, and the total portion of the net pension liability that was associated with the University is as follows:

2016 2015

University proportionate share of the net pension liability $63,955,762 $64,987,214

State's proportionate share of the net pension liability associated with the University Total 6,503,709 7,374,016

$70,459,471 $72,361,230

The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The University's proportion of the net pension liability was based on a projection of the University's long-term share of contributions to the pension plan relative to the projected contributions of all participating universities and the Commonwealth, actuarially determined. At June 30, 2016 and 2015 respectively, the University's proportion was 0.23% and 0.34%.