Kentucky Teachers' Retirement System

Pursuant to KRS 161.430, Teachers' Retirement may invest in any of the following Bonds (school improvement, revenue, industrial revenue, public utilities); notes; debentures; equipment trust certificates; conditional sales agreements; interest bearing deposits; stocks, preferred or common; mutual-type funds; real estate, first mortgages, or shares of beneficial interest in real estate; life insurance contracts; etc.

The system was established to provide a broad program of retirement benefits, death and survivor benefits, medical insurance benefits, and disability benefits to its membership. The system is to maintain a retirement system that is actuarially sound and to maintain member benefits at a level comparable to the benefits provided other state employees through the Kentucky Employees' Retirement System and the Social Security System.

The System was established on July 1, 1940 by KRS 161.230 to provide retirement allowances and other benefits for all teachers in public elementary and secondary schools, state colleges and universities, vocational schools, the Kentucky School for the Blind, and the Kentucky School for the Deaf.

The system received contributions from member teachers, and invested those funds in federal, state, municipal, school, or industrial revenue bonds, stocks, mutual funds, and real estate. The resulting revenues were used to pay benefits to teachers.

Administration of the system is the responsibility of the nine-member Board of Trustees. Two of the members are ex-officio, serving by reason of their constitutional offices. They are the Superintendent of Public Instruction and the State Treasurer. The remaining seven trustees are elected by the members of the Retirement System for four-year terms. The provisions of the law require that four of these be active members of the Retirement System, one be a retired member, and two persons from outside the teaching profession. Membership is mandatory for all persons teaching in the public schools or other institutions covered by the statutes governing Teachers' Retirement.

For administrative purposes, the system was attached to the Cabinet of Arts and Education in 1980.