2021 Kentucky Revised Statutes Chapter 78 - County employees' civil service and retirement 78.5540 Retired member who returns to work with participating employer -- Combination of accounts -- Employment within 12 months of retirement date -- Independent contractors and leased employees -- Reemployment on or after September 1, 2008 -- Voided retirement -- Absence of prearranged agreement -- Volunteer services -- Mayors and members of city legislative bodies -- Administrative regulations.
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78.5540 Retired member who returns to work with participating employer -Combination of accounts -- Employment within 12 months of retirement
date -- Independent contractors and leased employees -- Reemployment
on or after September 1, 2008 -- Voided retirement -- Absence of
prearranged agreement -- Volunteer services -- Mayors and members of
city legislative bodies -- Administrative regulations.
(1)
(2)
(3)
(4)
A retired member whose disability retirement was discontinued pursuant to
KRS 78.5528 and who is reemployed by an employer participating in the
system or the Kentucky Retirement Systems prior to his or her normal
retirement date shall have his or her accounts combined upon termination for
determining eligibility for benefits. If the member is eligible for retirement, the
member's service and creditable compensation earned as a result of his or her
reemployment shall be used in the calculation of benefits, except that the
member's final compensation shall not be less than the final compensation last
used in determining his or her retirement allowance. The member shall not
change beneficiary or payment option designations.
(a) If a retired member accepts employment or begins serving as a volunteer
with an employer participating in the systems administered by Kentucky
Retirement Systems or the County Employees Retirement System within
twelve (12) months of his or her retirement date, the retired member shall
notify the Authority and the participating employer shall submit the
information required or requested by the Authority to confirm the
individual's employment or volunteer status. The retired member shall not
be required to notify the Authority regarding any employment or volunteer
service with a participating agency that is accepted after twelve (12)
months following his or her retirement date.
(b) If the retired member is under a contract to provide services as an
independent contractor or leased employee to an employer participating
in the systems administered by Kentucky Retirement Systems or the
County Employees Retirement System within twelve (12) months of his or
her retirement date, the member shall submit a copy of that contract to
the Authority, and the Authority shall determine if the member is an
independent contractor or leased employee for purposes of retirement
benefits. The retired member and the participating employer shall submit
the information required or requested by the Authority to confirm the
individual's status as an independent contractor or leased employee. The
retired member shall not be required to notify the Authority regarding any
services entered into as an independent contractor or leased employee
with a participating agency that the employee enters into after twelve (12)
months following his or her retirement date.
Retired members of the County Employees Retirement System who returned
to work with an employer that participates in the County Employees Retirement
System or Kentucky Retirement Systems prior to September 1, 2008, shall be
governed by the provisions of KRS 61.637(1) to (16).
The following shall apply to retired members of the County Employees
Retirement System who are reemployed on or after September 1, 2008, by an
agency participating in the systems administered by the County Employees
Retirement System or the Kentucky Retirement Systems:
(a) Except as provided by paragraphs (c) and (d) of this subsection, if a
retired member is receiving a retirement allowance from the County
Employees Retirement System, or has filed the forms required to receive
a retirement allowance from the County Employees Retirement System,
and is employed in a regular full-time position required to participate in the
County Employees Retirement System or the Kentucky Retirement
Systems or is employed in a position that is not considered regular
full-time with an employer participating in the County Employees
Retirement System or the Kentucky Retirement Systems within three (3)
months following the member's initial retirement date, the member's
retirement shall be voided, and the member shall repay to the system all
benefits received, including any health insurance benefits. If the retired
member is returning to work in a regular full-time position required to
participate in the County Employees Retirement System:
1.
The member shall contribute to a member account established for
him or her in the County Employees Retirement System or the
Kentucky Retirement Systems, and employer contributions shall be
paid on behalf of the member by the participating employer to the
system; and
2.
Upon subsequent retirement, the member shall be eligible for a
retirement allowance based upon total service and creditable
compensation, including any additional service or creditable
compensation earned after his or her initial retirement was voided;
(b) Except as provided by paragraphs (c) and (d) of this subsection, if a
retired member is receiving a retirement allowance from the County
Employees Retirement System and is employed in a regular full-time
position required to participate in the County Employees Retirement
System or the Kentucky Retirement Systems after a three (3) month
period following the member's initial retirement date, the member may
continue to receive his or her retirement allowance during the period of
reemployment subject to the following provisions:
1.
If a member is reemployed by a participating employer within twelve
(12) months of the member's retirement date, the participating
employer shall certify in writing on a form prescribed by the Authority
that no prearranged agreement existed between the employee and
employer prior to the employee's retirement for the employee to
return to work with the participating employer. If the participating
employer fails to complete the certification or the Authority
determines a prearranged agreement exists, the member's
retirement shall be voided and the provisions of paragraph (a) of this
subsection shall apply to the member and the employer. For
purposes of this paragraph:
a.
If an elected official is reelected to a new term of office in the
same position and has retired from the elected office within
twelve (12) months prior to taking the new term of office, he or
she shall be deemed by the Authority as having a prearranged
(c)
(d)
agreement; and
b.
Employment that is accepted by the retired member after
twelve (12) months following the member's retirement date
shall not constitute a prearranged agreement under this
paragraph;
2.
Notwithstanding any other provision of KRS Chapter 78 to the
contrary, the member shall not contribute to the system and shall not
earn any additional benefits for any work performed during the
period of reemployment;
3.
Except as provided by KRS 70.291 to 70.293, 95.022, and 164.952
and except for any retiree employed as a school resource officer as
defined by KRS 158.441, the employer shall pay employer
contributions as specified by KRS 78.5536 and 78.635 on all
creditable compensation earned by the employee during the period
of reemployment. The additional contributions paid shall be used to
reduce the unfunded actuarial liability of the system; and
4.
Except as provided by KRS 70.291 to 70.293, 95.022, and 164.952
and except for any retiree employed as a school resource officer as
defined by KRS 158.441, the employer shall be required to
reimburse the system for the cost of the health insurance premium
paid by the system to provide coverage for the retiree, not to exceed
the cost of the single premium. Effective July 1, 2015, local school
boards shall not be required to pay the reimbursement required by
this subparagraph for retirees employed by the board for eighty (80)
days or less during the fiscal year;
If a member is receiving a retirement allowance from hazardous position
coverage with the County Employees Retirement System, or has filed the
forms required to receive a retirement allowance from the County
Employees Retirement System for service in a hazardous position, and is
employed in a regular full-time hazardous position required to participate
in the County Employees Retirement System or the Kentucky Retirement
Systems within one (1) month following the member's initial retirement
date, the member's retirement shall be voided, and the member shall
repay to the system all benefits received, including any health insurance
benefits. If the member is returning to work in a regular full-time position
required to participate in the County Employees Retirement System or the
Kentucky Retirement Systems:
1.
The member shall contribute to a member account established for
him or her in the County Employees Retirement System or the
Kentucky Retirement Systems, and employer contributions shall be
paid on behalf of the member by the participating employer; and
2.
Upon subsequent retirement, the member shall be eligible for a
retirement allowance based upon total service and creditable
compensation, including any additional service or creditable
compensation earned after his or her initial retirement was voided;
If a member is receiving a retirement allowance from the hazardous
position coverage with the County Employees Retirement System and is
(e)
employed in a regular full-time hazardous position required to participate
in the County Employees Retirement System or the Kentucky Retirement
Systems after a one (1) month period following the member's initial
retirement date, the member may continue to receive his or her retirement
allowance during the period of reemployment subject to the following
provisions:
1.
If a member is reemployed by a participating employer within twelve
(12) months of the member's retirement date, the participating
employer shall certify in writing on a form prescribed by the Authority
that no prearranged agreement existed between the employee and
employer prior to the employee's retirement for the employee to
return to work with the participating employer. If the participating
employer fails to complete the certification or the Authority
determines a prearranged agreement exists, the member's
retirement shall be voided and the provisions of paragraph (c) of this
subsection shall apply to the member and the employer. For
purposes of this paragraph:
a.
If an elected official is reelected to a new term of office in the
same position and has retired from the elected office within
twelve (12) months prior to taking the new term of office, he or
she shall be deemed by the system as having a prearranged
agreement; and
b.
Employment that is accepted by the retired member after
twelve (12) months following the member's retirement date
shall not constitute a prearranged agreement under this
paragraph;
2.
Notwithstanding any other provision of KRS Chapter 78 to the
contrary, the member shall not contribute to the system or the
Kentucky Retirement Systems and shall not earn any additional
benefits for any work performed during the period of reemployment;
3.
Except as provided by KRS 70.291 to 70.293, 95.022, and 164.952
and except for any retiree employed as a school resource officer as
defined by KRS 158.441, the employer shall pay employer
contributions as specified by KRS 78.5536 and 78.635 on all
creditable compensation earned by the employee during the period
of reemployment. The additional contributions paid shall be used to
reduce the unfunded actuarial liability of the system; and
4.
Except as provided by KRS 70.291 to 70.293, 95.022, and 164.952
and except for any retiree employed as a school resource officer as
defined by KRS 158.441, the employer shall be required to
reimburse the system for the cost of the health insurance premium
paid by the system to provide coverage for the retiree, not to exceed
the cost of the single premium;
Notwithstanding paragraphs (a) to (d) of this subsection, a retired
member who qualifies as a volunteer for an employer participating in the
County Employees Retirement System or the Kentucky Retirement
Systems and who is receiving reimbursement of actual expenses, a
(f)
nominal fee for his or her volunteer services, or both, shall not be
considered an employee of the participating employer and shall not be
subject to paragraphs (a) to (d) of this subsection if:
1.
Prior to the retired member's most recent retirement date, he or she
did not receive creditable compensation from the participating
employer in which the retired member is performing volunteer
services;
2.
Any reimbursement or nominal fee received prior to the retired
member's most recent retirement date has not been credited as
creditable compensation to the member's account or utilized in the
calculation of the retired member's benefits;
3.
The retired member has not purchased or received service credit
under any of the provisions of KRS 78.510 to 78.852 for service with
the participating employer for which the retired member is
performing volunteer services; and
4.
Other than the status of volunteer, the retired member does not
become an employee, leased employee, or independent contractor
of the employer for which he or she is performing volunteer services
for a period of at least twelve (12) months following the retired
member's most recent retirement date.
If a retired member, who provided volunteer services with a participating
employer under this paragraph violates any provision of this paragraph,
then he or she shall be deemed an employee of the participating
employer as of the date he or she began providing volunteer services and
both the retired member and the participating employer shall be subject to
paragraphs (a) to (d) of this subsection for the period of volunteer service;
Notwithstanding any provision of this section, any mayor or member of a
city legislative body shall not be required to resign from his or her position
as mayor or as a member of the city legislative body in order to begin
drawing benefits from the systems administered by the Kentucky
Retirement Systems or the County Employees Retirement System or
subject to any provision of this section as it relates solely to his or her
service as a mayor or member of the city legislative body, if the mayor or
member of a city legislative body:
1.
Has not participated in the County Employees Retirement System
prior to retirement, but is otherwise eligible to retire from the
Kentucky Employees Retirement System or the State Police
Retirement System; or
2.
Has been or is participating in the County Employees Retirement
System and is at least sixty-two (62) years of age. If a mayor or
member of a city legislative body who is at least sixty-two (62) years
of age retires from the systems administered by Kentucky
Retirement Systems or the County Employees Retirement System
but remains in office after his or her effective retirement date, the
mayor or member of the city legislative body shall not accrue any
further service credit or benefits in the systems administered by
Kentucky Retirement Systems or the County Employees Retirement
(5)
System for any employment occurring on or after the effective
retirement date;
(g) If a member is receiving a retirement allowance from the County
Employees Retirement System and enters into a contract or becomes a
leased employee of an employer under contract with an employer
participating in the County Employees Retirement System or the
Kentucky Retirement Systems:
1.
At any time following retirement, if the Authority determines the
employment arrangement does qualify as an independent contractor
or leased employee, the member may continue to receive his or her
retirement allowance during the period of the contract;
2.
Within three (3) months following the member's initial retirement
date, if the Authority determines the employment arrangement does
not qualify as an independent contractor or leased employee, the
member's retirement shall be voided in accordance with paragraph
(a) of this subsection;
3.
After three (3) months but within twelve (12) months following the
member's initial retirement, if the Authority determines the
employment arrangement does not qualify as an independent
contractor or leased employee and that a prearranged agreement
existed between the member and the agency for the member to
return to work with the agency, the member's retirement shall be
voided in accordance with paragraph (a) of this subsection; and
4.
After a twelve (12) month period following the member's initial
retirement, the member may continue to receive his or her
retirement allowance during the period of the contract and the
member shall not be required to notify the Authority or submit any
documentation for purposes of this section to the Authority. The
initiation of a contract or the initial date of the leased employment of
a retired member by a participating agency that occurs after twelve
(12) months or more following the retired member's retirement date
shall not constitute a prearranged agreement under this subsection;
(h) The Authority shall issue a final determination regarding a certification of
the absence of a prearranged agreement or the retired member's
qualification as an independent contractor or leased employee as
required under this section no later than thirty (30) days after the retired
member and participating employer provide all required forms and
additional information required by the Authority; and
(i) Retired members of one (1) of the systems administered by Kentucky
Retirement Systems who are reemployed by an employer in the County
Employees Retirement System on or after September 1, 2008, shall not
be eligible to earn a second retirement account in the County Employees
Retirement System for his or her service to the employer.
The Authority shall promulgate administrative regulations to implement the
requirements of this section, including incorporating by reference
Authority-prescribed forms that a retired member and participating agency shall
provide the systems under subsections (1) and (4) of this section.
(6)
"Reemployment" or "reinstatement" as used in this section shall not include a
retired member who has been ordered reinstated by the Personnel Board
under authority of KRS 18A.095. A retired member who has been ordered
reinstated by the Personnel Board under authority of KRS 18A.095 or by court
order or by order of the Human Rights Commission and accepts employment
by an agency participating in the Kentucky Employees Retirement System or
County Employees Retirement System shall void his or her retirement by
reimbursing the system in the full amount of his or her retirement allowance
payments received.
Effective:April 1, 2021
History: Created 2021 Ky. Acts ch. 102, sec. 16, effective April 1, 2021.
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