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21.460 Refund of contributions or account balance -- Interest on deferred refunds - Repayment.
(1)
(2)
(3)
(4)
(5)
(a)
For members who began participating in the Judicial Retirement Plan prior to
January 1, 2014: If any member of the plan ceases, other than by death or by
disability retirement under KRS 21.410, to hold an office qualifying him for
membership in the plan established by KRS 21.350 to 21.480, without having
met the requirements for vesting, he shall be refunded on demand the amount
of his accumulated contributions and any service credit he had in the plan
shall be nullified.
(b) A member who begins participating in the Judicial Retirement Plan on or after
January 1, 2014, may, if the member ceases to hold an office qualifying him or
her for membership in the plan established by KRS 21.345 to 21.580, elect to
take a refund of his or her accumulated account balance subject to the
limitations provided by KRS 21.402.
The member may elect to leave his contributions in the plan, in which event the
service credit he had in the plan shall be considered to be service credit for vesting
purposes as provided in KRS 21.375 and for service retirement eligibility as
provided in KRS 61.680(7), and, in the event he again becomes a member of the
Judicial Retirement Plan, shall be counted toward his total service credit in that
plan.
If a person who has been refunded his accumulated contributions or accumulated
account balance in accordance with subsection (1) of this section subsequently
becomes a member of the Legislators' Retirement Plan, the Kentucky Employees
Retirement System, County Employees Retirement System, State Police Retirement
System, or Teachers' Retirement System, he may while holding such membership
repurchase the service credit he previously had in the Judicial Retirement Plan by
repaying to that plan the amount that was refunded to him with interest at six
percent (6%) per annum, in which event such service credit shall have operative
effect to the same limited extent as provided in subsection (2) of this section.
Service purchased under this subsection on or after January 1, 2014, shall not be
used to determine the member's participation date in the Judicial Retirement Plan.
If a person who has been refunded his accumulated contribution or accumulated
account balance in accordance with subsection (1) of this section thereafter becomes
again the holder of an office qualifying him for membership in the Judicial
Retirement Plan, he shall not be entitled to credit for his prior period of service
unless he has previously repaid his refunded contributions in accordance with
subsection (3) of this section or unless within thirty (30) days after again assuming
office he repays to the plan the amount that was refunded to him with interest at six
percent (6%) per annum. Service purchased under this subsection on or after
January 1, 2014, shall not be used to determine the member's participation date in
the Judicial Retirement Plan.
If the taking of a refund of contributions by a member of the Kentucky Judicial
Retirement Plan, when first entitled thereto, would subject the member to a federal
excise tax, by reason of the refund's being made before the member has reached an
age designated by the federal taxing act, and the member has elected, pursuant to
subsection (2) of this section, to defer taking a refund, so much of the contributions
as would have been subject to the excise tax shall accrue interest at the rate of six
percent (6%) per annum, from the date the member first could have taken a refund
until the date the refund is taken or the date as of which the federal excise tax no
longer would apply to a refund, whichever is sooner, the interest to be paid by the
plan at the time of the refund. The provisions of this subsection shall not apply to
members who begin participating in the Judicial Retirement Plan on or after January
1, 2014.
Effective: July 1, 2013
History: Amended 2013 Ky. Acts ch. 120, sec. 30, effective July 1, 2013. -- Amended
1988 Ky. Acts ch. 299, sec. 2, effective July 15, 1988. -- Amended 1984 Ky. Acts ch.
111, sec. 28, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 458, sec. 2,
effective April 15, 1982. -- Amended 1968 Ky. Acts ch. 152, sec. 6. -- Amended
1962 Ky. Acts ch. 9, sec. 8. -- Created 1960 Ky. Acts ch. 84, Art. III, sec. 12.
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