All qualifying employees not participating in the defined contribution plan sponsored by the University are provided with pensions through KTRS—a cost-sharing multiple-employer defined benefit pension plan. Pursuant to the provisions of KRS 161.250 the Board of Trustees of KTRS is vested with the responsibility for the general administration and management of the retirement system. The Board may adopt procedures necessary to conduct the business of the retirement system as needed. The applicable provisions of the Kentucky Revised Statutes (state law) shall control if any inconsistency exists between state law and this policy. KTRS 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 (505) 848-8500.
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.
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, 2015 and 2014 employees were required to contribute 7.16 percent of their annual pay for retirement benefits. The University's contractually required contribution rate for the year ended June 30, 2015, was 14.84% 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 $2,436,799 and $2,338,266 for the years ended June 30, 2015 and 2014, respectively.