HB 392

Bill Subjects

Fiduciaries Retirement And Pensions State Agencies State Employees

Abstract

Amend KRS 18A.230 to define "self-directed brokerage account" (SDBA); amend KRS 18A.235 to authorize the board of trustees of the Kentucky Public Employees Deferred Compensation Authority (KY Deferred Comp) to purchase fiduciary liability insurance and reimburse its trustees, officers, and employees for legal expenses relating to performance of their duties; amend KRS 18A.245 to authorize KY Deferred Comp to offer SDBAs to its participants, contract with SDBA vendors, and promulgate administrative regulations relating to SDBAs for its participants; require the plans offered by KY Deferred Comp to conform to federal laws and regulations; authorize KY Deferred Comp to promulgate administrative regulations; make technical changes; amend KRS 18A.255 to provide that KY Deferred Comp and its board of trustees are not liable for a participant's investment in a SDBA; codify the fiduciary duties of the board of trustees; exempt the trustees from legal action for monetary damages unless the person bringing the action proves by clear and convincing evidence that a trustee's breach or failure to perform the trustee's fiduciary duty is a willful, wanton, or reckless act; amend KRS 18A.260 to require assets held by KY Deferred Comp to be invested consistent with its statutory authority and to limit investments in a SDBA to securities registered with the United States Securities and Exchange Commission.