AN ACT relating to the Kentucky Public Employees' Deferred Compensation Authority.

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…

Fiduciaries Retirement and Pensions State Agencies State Employees

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This bill updates the rules for Kentucky's Public Employees' Deferred Compensation Authority, which manages voluntary retirement savings accounts for state employees. It allows the program to offer self-directed brokerage accounts, giving participants more investment choices, while limiting those investments to securities registered with the federal Securities and Exchange Commission. It also clarifies the legal responsibilities of the program's board and protects trustees from personal liability unless their actions are found to be willful, wanton, or reckless. Who it may affect: Kentucky state and public employees who participate in or are considering the state's voluntary deferred compensation retirement savings program.

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