Legislation was enacted during the 2015 Regular Session establishing a process for certain employers to cease participation with KPPA. Any employer participating in the Kentucky Employees Retirement System (KERS) or the County Employees Retirement System (CERS) may voluntarily cease participation in the retirement system if the employer is a nonstock nonprofit corporation organized under Kentucky Revised Statute Chapter 273.
An employer seeking to cease participation in KERS or CERS shall file a completed
Form 7730, Application for Voluntary Cessation from CERS or KERS, with the executive director of the Kentucky Public Pensions Authority (KPPA) by December 31 during the plan year containing the employer’s selected effective cessation date.
A completed Form 7730 must be accompanied by all of the following in accordance with 105 KAR 1:149 Section 4:
- The Resolution of the governing body of the employer resolving to voluntarily cease its participation in the Kentucky Employees Retirement System or the County Employees Retirement System;
- The employer's Articles of Incorporation, if applicable;
- The employer's current by-laws, if applicable;
- The employer's Certificate of Existence/Authorization from the Kentucky Secretary of State, if applicable;
- Documentation of the alternative retirement program created by or being created by the employer for its employees, such as a written description of the alternative retirement program;
- The employer's most recent five (5) audited financial statements and independent auditor's reports;
- The employer's most recent five (5) Consolidated Annual Financial Reports, if applicable; and
- Documentation of the source of the funds the employer intends to use to pay the full actuarial cost.
- An encrypted electronic file listing each current and former full-time employee as defined by Kentucky Revised Statutes 61.510(21) and 78.510(21) who were employed during any time period the employer participated in the Kentucky Employees Retirement System or the County Employees Retirement System, containing:
- Full name; last known address; date of birth; Social Security Number or Kentucky Public Pensions Authority member identification number; beginning date of employment; date employment ended, if applicable; sick leave balance; beginning and ending dates of any active duty military service when the employee was not employed by the employer filing Form 7730, if available; and beginning and ending dates of any active duty military service when the employee was employed by the employer filing Form 7730.
- A list of pending lawsuits, legal actions, arbitrations, mediations, and other litigation to which the employer is a party including: name of the case; case number; name and address of the court, arbitrator, mediator, or administrative agency in which the case is pending; and a copy of the complaint or a description of the allegations made in the complaint as well as the type and amount of relief sought by the plaintiff or plaintiffs.
If you have any questions regarding the cessation process please email your questions to ERCE Director D'Juan Surratt.