The University leased apartment units for students which expired on May 31, 2012. The University leases computer equipment under operating leases expiring on August 1, 2014. Lease payments to the lessors under these leases totaled $196,807 and $87,000 for the years ended June 30, 2012 and 2011, respectively.
Minimum future lease payments under all leases are as follows:
2013 $ 125,232
2014 125,232
2015 20,872
$ 271,336
All faculty and exempt employees required to hold a degree and occupying full-time positions, defined as seventhths (7/10) of normal full-time service on a daily or weekly basis, are required by state law to participate either in the Kentucky Teachers Retirement System (KTRS) or the Optional Retirement Plan (ORP). KTRS, a cost sharing, multiple-employer, public employee retirement system, provides retirement benefits based on an employee's final average salary and number of years of service. Benefits are subject to certain reductions if the employee retires before reaching age sixty, unless the employee has twenty-seven or more years of participation in the plan. The plan also provides for disability retirement, death and survivor benefits, and medical insurance.
The Kentucky Teachers Retirement System issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to Kentucky Teachers Retirement System, 479 Versailles Road, Frankfort, Kentucky 40601-3868 or by calling (502) 848-8500.
Funding for the plan is provided from eligible employees who contribute 6.16% of their salary through payroll deductions and the Commonwealth of Kentucky, which also indirectly contributes 13.84% of current eligible employees' salaries to the KTRS through appropriations to the University. Employees hired on or after July 1, 2008 contribute 7.16% of their salary through payroll deductions and the Commonwealth of Kentucky, which also indirectly contributes 14.84% to the KTRS through appropriations to the University. Contribution requirements of the plan members and the University are established by Kentucky Revised Statute and the KTRS Board of Trustees. The University's contributions to KTRS for the years ended June 30, 2012, 2011 and 2010 were $2,155,711, $2,128,980, and $2,009,627, respectively, and equaled the required contribution for that year.