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16.505 Definitions for KRS 16.505 to 16.652.
As used in KRS 16.505 to 16.652, unless the context otherwise requires:
(1) "System" means the State Police Retirement System created by KRS 16.505
to 16.652;
(2) "Board" means the board of trustees of the Kentucky Retirement Systems;
(3) "Employer" or "State Police" means the Department of Kentucky State Police,
or its successor;
(4) "Current service" means the number of years and completed months of
employment as an employee subsequent to July 1, 1958, for which creditable
compensation was paid by the employer and employee contributions deducted
except as otherwise provided;
(5) "Prior service" means the number of years and completed months of
employment as an employee prior to July 1, 1958, for which creditable
compensation was paid to the employee by the Commonwealth. Twelve (12)
months of current service in the system are required to validate prior service;
(6) "Service" means the total of current service and prior service;
(7) "Accumulated contributions" at any time means the sum of all amounts
deducted from the compensation of a member and credited to his individual
account in the member's account, including employee contributions picked up
after August 1, 1982, pursuant to KRS 16.545(4), together with interest
credited on such amounts as provided in KRS 16.505 to 16.652, and any other
amounts the member shall have contributed, including interest credited. For
members who begin participating on or after September 1, 2008, "accumulated
contributions" shall not include employee contributions that are deposited into
accounts established pursuant to 26 U.S.C. sec. 401(h) within the funds
established in KRS 16.510, 61.515, and 78.520, as prescribed by KRS
61.702(2)(b);
(8) "Creditable compensation" means all salary and wages, including payments for
compensatory time, paid to the employee as a result of services performed for
the employer or for time during which the member is on paid leave, which are
includable on the member's federal form W-2 wage and tax statement under
the heading "wages, tips, other compensation," including employee
contributions picked up after August 1, 1982, pursuant to KRS 16.545(4). A
lump-sum bonus, severance pay, or employer-provided payment for purchase
of service credit shall be included as creditable compensation but shall be
averaged over the employee's total service with the system in which it is
recorded if it is equal to or greater than one thousand dollars ($1,000). Living
allowances, expense reimbursements, lump-sum payments for accrued
vacation leave, and other items determined by the board shall be excluded.
Creditable compensation shall also include amounts which are not includable
in the member's gross income by virtue of the member having taken a
voluntary salary reduction provided for under applicable provisions of the
Internal Revenue Code. Creditable compensation shall also include elective
amounts for qualified transportation fringes paid or made available on or after
January 1, 2001, for calendar years on or after January 1, 2001, that are not
includable in the gross income of the employee by reason of 26 U.S.C. sec.
(9)
(10)
(11)
(12)
(13)
(14)
(15)
132(f)(4). For employees who begin participating on or after September 1,
2008, creditable compensation shall not include payments for compensatory
time;
"Final compensation" means:
(a) For a member who begins participating before September 1, 2008, the
creditable compensation of a member during the three (3) fiscal years he
was paid at the highest average monthly rate divided by the number of
months of service credit during the three (3) year period, multiplied by
twelve (12); the three (3) years may be fractional and need not be
consecutive. If the number of months of service credit during the three (3)
year period is less than twenty-four (24), one (1) or more additional fiscal
years shall be used; or
(b) For a member who begins participating on or after September 1, 2008,
but prior to January 1, 2014, the creditable compensation of the member
during the three (3) complete fiscal years he or she was paid at the
highest average monthly rate divided by three (3). Each fiscal year used
to determine final compensation must contain twelve (12) months of
service credit;
"Final rate of pay" means the actual rate upon which earnings of a member
were calculated during the twelve (12) month period immediately preceding the
member's effective retirement date, including employee contributions picked up
after August 1, 1982, pursuant to KRS 16.545(4). The rate shall be certified to
the system by the employer and the following equivalents shall be used to
convert the rate to an annual rate: two thousand eighty (2,080) hours for eight
(8) hour workdays, one thousand nine hundred fifty (1,950) hours for seven
and one-half (7-1/2) hour workdays, two hundred sixty (260) days, fifty-two (52)
weeks, twelve (12) months, or one (1) year;
"Retired member" means any former member receiving a retirement allowance
or any former member who has filed the necessary documents for retirement
benefits and is no longer contributing to the retirement system;
"Retirement allowance" means the retirement payments to which a retired
member is entitled;
"Actuarial equivalent" means a benefit of equal value when computed upon the
basis of actuarial tables adopted by the board. In cases of disability retirement,
the options authorized by KRS 61.635 shall be computed by adding ten (10)
years to the age of the member, unless the member has chosen the Social
Security adjustment option as provided for in KRS 61.635(8), in which case the
member's actual age shall be used. For members who began participating in
the system prior to January 1, 2014, no disability retirement option shall be less
than the same option computed under early retirement;
"Authorized leave of absence" means any time during which a person is absent
from employment but retained in the status of an employee in accordance with
the personnel policy of the Department of Kentucky State Police;
"Normal retirement date" means:
(a) For a member who begins participating before September 1, 2008, the
first day of the month following a member's fifty-fifth birthday, except that
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(17)
(18)
(19)
(20)
(21)
(22)
(23)
(24)
(25)
(26)
for members over age fifty-five (55) on July 1, 1958, it shall mean January
1, 1959; or
(b) For a member who begins participating on or after September 1, 2008,
the first day of the month following a member's sixtieth birthday;
"Disability retirement date" means the first day of the month following the last
day of paid employment;
"Dependent child" means a child in the womb and a natural or legally adopted
child of the member who has neither attained age eighteen (18) nor married or
who is an unmarried full-time student who has not attained age twenty-two
(22);
"Optional allowance" means an actuarially equivalent benefit elected by the
member in lieu of all other benefits provided by KRS 16.505 to 16.652;
"Act in line of duty" means an act occurring or a thing done, which, as
determined by the board, was required in the performance of the duties
specified in KRS 16.060. For employees in hazardous positions under KRS
61.592, an "act in line of duty" shall mean an act occurring which was required
in the performance of the principal duties of the position as defined by the job
description;
"Early retirement date" means:
(a) For a member who begins participating before September 1, 2008, the
retirement date declared by a member who is not less than fifty (50) years
of age and has fifteen (15) years of service; or
(b) For a member who begins participating on or after September 1, 2008,
but prior to January 1, 2014, the retirement date declared by a member
who is not less than fifty (50) years of age and has fifteen (15) years of
service credited under KRS 16.543(1), 61.543(1), or 78.615(1) or another
state-administered retirement system;
"Member" means any officer included in the membership of the system as
provided under KRS 16.520 whose membership has not been terminated
under KRS 61.535;
"Regular full-time officers" means the occupants of positions as set forth in
KRS 16.010;
"Hazardous disability" as used in KRS 16.505 to 16.652 means a disability
which results in an employee's total incapacity to continue as an employee in a
hazardous position, but the employee is not necessarily deemed to be totally
and permanently disabled to engage in other occupations for remuneration or
profit;
"Current rate of pay" means the member's actual hourly, daily, weekly,
biweekly, monthly, or yearly rate of pay converted to an annual rate as defined
in final rate of pay. The rate shall be certified by the employer;
"Beneficiary" means the person, persons, estate, trust, or trustee designated
by the member in accordance with KRS 61.542 or 61.705 to receive any
available benefits in the event of the member's death. As used in KRS 61.702,
"beneficiary" does not mean an estate, trust, or trustee;
"Recipient" means the retired member, the person or persons designated as
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(28)
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(30)
(31)
(32)
(33)
(34)
(35)
(36)
(37)
beneficiary by the member and drawing a retirement allowance as a result of
the member's death, or a dependent child drawing a retirement allowance. An
alternate payee of a qualified domestic relations order shall not be considered
a recipient, except for purposes of KRS 61.623;
"Person" means a natural person;
"Retirement office" means the Kentucky Retirement Systems office building in
Frankfort;
"Delayed contribution payment" means an amount paid by an employee for
purchase of current service. The amount shall be determined using the same
formula in KRS 61.5525, and the payment shall not be picked up by the
employer. A delayed contribution payment shall be deposited to the member's
account and considered as accumulated contributions of the individual
member;
"Last day of paid employment" means the last date employer and employee
contributions are required to be reported in accordance with KRS 16.543,
61.543, or 78.615 to the retirement office in order for the employee to receive
current service credit for the month. Last day of paid employment does not
mean a date the employee receives payment for accrued leave, whether by
lump sum or otherwise, if that date occurs twenty-four (24) or more months
after previous contributions;
"Objective medical evidence" means reports of examinations or treatments;
medical signs which are anatomical, physiological, or psychological
abnormalities that can be observed; psychiatric signs which are medically
demonstrable phenomena indicating specific abnormalities of behavior, affect,
thought, memory, orientation, or contact with reality; or laboratory findings
which are anatomical, physiological, or psychological phenomena that can be
shown by medically acceptable laboratory diagnostic techniques, including but
not limited to chemical tests, electrocardiograms, electroencephalograms,
X-rays, and psychological tests;
"Fiscal year" of the system means the twelve (12) months from July 1 through
the following June 30, which shall also be the plan year. The "fiscal year" shall
be the limitation year used to determine contribution and benefit limits
established by 26 U.S.C. sec. 415;
"Participating" means an employee is currently earning service credit in the
system as provided in KRS 16.543;
"Month" means a calendar month;
"Membership date" means the date upon which the member began
participating in the system as provided by KRS 16.543;
"Participant" means a member, as defined by subsection (21) of this section, or
a retired member, as defined by subsection (11) of this section;
"Qualified domestic relations order" means any judgment, decree, or order,
including approval of a property settlement agreement, that:
(a) Is issued by a court or administrative agency; and
(b) Relates to the provision of child support, alimony payments, or marital
property rights to an alternate payee;
(38) "Alternate payee" means a spouse, former spouse, child, or other dependent of
a participant, who is designated to be paid retirement benefits in a qualified
domestic relations order;
(39) "Accumulated employer credit" means the employer pay credit deposited to the
member's account and interest credited on such amounts as provided by KRS
16.583; and
(40) "Accumulated account balance" means:
(a) For members who began participating in the system prior to January 1,
2014, the member's accumulated contributions; or
(b) For members who began participating in the system on or after January
1, 2014, in the hybrid cash balance plan as provided by KRS 16.583, the
combined sum of the member's accumulated contributions and the
member's accumulated employer pay credit.
Effective:July 1, 2013
History: Amended 2013 Ky. Acts ch. 120, sec. 34, effective July 1, 2013. -Amended 2010 Ky. Acts ch. 148, sec. 2, effective July 15, 2010. -- Amended
2009 Ky. Acts ch. 77, sec. 1, effective June 25, 2009. -- Amended 2008 (1st
Extra. Sess.) Ky. Acts ch. 1, sec. 6, effective June 27, 2008. -- Amended 2007
Ky. Acts ch. 85, sec. 72, effective June 26, 2007. -- Amended 2004 Ky. Acts
ch. 36, sec. 1, effective July 13, 2004. -- Amended 2003 Ky. Acts ch. 169,
sec. 1, effective March 31, 2003. -- Amended 2002 Ky. Acts ch. 52, sec. 1,
effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 210, sec. 1, effective July
14, 2000; and ch. 385, sec. 1, effective July 14, 2000. -- Amended 1998 Ky.
Acts ch. 105, sec. 1, effective July 15, 1998; and ch. 300, sec. 3, effective July
15, 1998. -- Amended 1996 Ky. Acts ch. 167, sec. 1, effective July 15, 1996. -Amended 1994 Ky. Acts ch. 485, sec. 1, effective July 15, 1994. Amended
1992 Ky. Acts ch. 240, sec. 1, effective July 14, 1992. -- Amended 1988 Ky.
Acts ch. 349, sec. 1, effective July 15, 1988. -- Amended 1986 Ky. Acts ch. 90,
sec. 1, effective July 15, 1986; and ch. 331, sec. 10, effective July 15, 1986. -Amended 1984 Ky. Acts ch. 95, sec. 1, effective July 13, 1984. -- Amended
1982 Ky. Acts ch. 166, sec. 24, effective July 15, 1982; and ch. 423, sec. 1,
effective July 15, 1982. -- Amended 1980 Ky. Acts ch. 186, sec. 1, effective July
15, 1980. -- Amended 1978 Ky. Acts ch. 311, sec. 1, effective June 17, 1978;
and ch. 384, sec. 535, effective June 17, 1978. -- Amended 1976 Ky. Acts
ch. 321, secs. 1 and 40. -- Amended 1974 Ky. Acts ch. 74, Art. V, sec. 24(3);
and ch. 128, sec. 1. -- Amended 1972 Ky. Acts ch. 116, sec. 1. -- Amended
1970 Ky. Acts ch. 76, sec. 1. -- Amended 1968 Ky. Acts ch. 25, sec. 1. -Amended 1966 Ky. Acts ch. 33, sec. 1. -- Amended 1964 Ky. Acts ch. 91,
sec. 1. -- Created 1958 Ky. Acts ch. 94, sec. 1.
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