2013 Kentucky Revised Statutes CHAPTER 161 - SCHOOL EMPLOYEES -- TEACHERS' RETIREMENT AND TENURE 161.220 Definitions for KRS 161.220 to 161.716 and 161.990.
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161.220 Definitions for KRS 161.220 to 161.716 and 161.990.
As used in KRS 161.220 to 161.716 and 161.990:
(1) "Retirement system" means the arrangement provided for in KRS 161.220 to
161.716 and 161.990 for payment of allowances to members;
(2) "Retirement allowance" means the amount annually payable during the course
of his natural life to a member who has been retired by reason of service;
(3) "Disability allowance" means the amount annually payable to a member retired
by reason of disability;
(4) "Member" means the commissioner of education, deputy commissioners,
associate commissioners, and all division directors in the State Department of
Education, employees participating in the system pursuant to KRS
196.167(3)(b)1., and any full-time teacher or professional occupying a position
requiring certification or graduation from a four (4) year college or university, as
a condition of employment, and who is employed by public boards, institutions,
or agencies as follows:
(a) Local boards of education;
(b) Eastern Kentucky University, Kentucky State University, Morehead State
University, Murray State University, Western Kentucky University, and
any community colleges established under the control of these
universities;
(c) State-operated secondary area vocational education or area technology
centers, Kentucky School for the Blind, and Kentucky School for the Deaf;
(d) The Education Professional Standards Board, other public education
agencies as created by the General Assembly, and those members of the
administrative staff of the Teachers' Retirement System of the State of
Kentucky whom the board of trustees may designate by administrative
regulation;
(e) Regional cooperative organizations formed by local boards of education
or other public educational institutions listed in this subsection, for the
purpose of providing educational services to the participating
organizations;
(f) All full-time members of the staffs of the Kentucky Association of School
Administrators, Kentucky Education Association, Kentucky Vocational
Association, Kentucky High School Athletic Association, Kentucky
Academic Association, and the Kentucky School Boards Association who
were members of the Kentucky Teachers' Retirement System or were
qualified for a position covered by the system at the time of employment
by the association in the event that the board of directors of the respective
association petitions to be included. The board of trustees of the Kentucky
Teachers' Retirement System may designate by resolution whether
part-time employees of the petitioning association are to be included. The
state shall make no contributions on account of these employees, either
full-time or part-time. The association shall make the employer's
contributions, including any contribution that is specified under KRS
161.550. The provisions of this paragraph shall be applicable to persons
in the employ of the associations on or subsequent to July 1, 1972;
(g)
Employees of the Council on Postsecondary Education who were
employees of the Department for Adult Education and Literacy and who
were members of the Kentucky Teachers' Retirement System at the time
the department was transferred to the council pursuant to Executive
Order 2003-600;
(h) The Office of Career and Technical Education, except that the executive
director shall not be a member;
(i) The Office of Vocational Rehabilitation;
(j) The Kentucky Educational Collaborative for State Agency Children;
(k) The Governor's Scholars Program;
(l) Any person who is retired for service from the retirement system and is
reemployed by an employer identified in this subsection in a position that
the board of trustees deems to be a member;
(m) Employees of the former Cabinet for Workforce Development who are
transferred to the Kentucky Community and Technical College System
and who occupy positions covered by the Kentucky Teachers' Retirement
System shall remain in the Teachers' Retirement System. New
employees occupying these positions, as well as newly created positions
qualifying for Teachers' Retirement System coverage that would have
previously been included in the former Cabinet for Workforce
Development, shall be members of the Teachers' Retirement System;
(n) Effective January 1, 1998, employees of state community colleges who
are transferred to the Kentucky Community and Technical College
System shall continue to participate in federal old age, survivors,
disability, and hospital insurance, and a retirement plan other than the
Kentucky Teachers' Retirement System offered by Kentucky Community
and Technical College System. New employees occupying positions in
the Kentucky Community and Technical College System as referenced in
KRS 164.5807(5) that would not have previously been included in the
former Cabinet for Workforce Development, shall participate in federal old
age, survivors, disability, and hospital insurance and have a choice at the
time of employment of participating in a retirement plan provided by the
Kentucky Community and Technical College System, including
participation in the Kentucky Teachers' Retirement System, on the same
basis as faculty of the state universities as provided in KRS 161.540 and
161.620;
(o) Employees of the Office of General Counsel, the Office of Budget and
Administrative Services, and the Office of Quality and Human Resources
within the Office of the Secretary of the former Cabinet for Workforce
Development and the commissioners of the former Department for Adult
Education and Literacy and the former Department for Technical
Education who were contributing to the Kentucky Teachers' Retirement
System as of July 15, 2000; and
(p) Employees of the Kentucky Department of Education only who are
graduates of a four (4) year college or university, notwithstanding a
substitution clause within a job classification, and who are serving in a
professional job classification as defined by the department.
(5)
"Present teacher" means any teacher who was a teacher on or before July 1,
1940, and became a member of the retirement system created by 1938 (1st
Extra. Sess.) Ky. Acts ch. 1, on the date of the inauguration of the system or
within one (1) year after that date, and any teacher who was a member of a
local teacher retirement system in the public elementary or secondary schools
of the state on or before July 1, 1940, and continued to be a member of the
system until he, with the membership of the local retirement system, became a
member of the state Teachers' Retirement System or who becomes a member
under the provisions of KRS 161.470(4);
(6) "New teacher" means any member not a present teacher;
(7) "Prior service" means the number of years during which the member was a
teacher in Kentucky prior to July 1, 1941, except that not more than thirty (30)
years' prior service shall be allowed or credited to any teacher;
(8) "Subsequent service" means the number of years during which the teacher is a
member of the Teachers' Retirement System after July 1, 1941;
(9) "Final average salary" means the average of the five (5) highest annual
salaries which the member has received for service in a covered position and
on which the member has made contributions, or on which the public board,
institution, or agency has picked-up member contributions pursuant to KRS
161.540(2), or the average of the five (5) years of highest salaries as defined in
KRS 61.680(2)(a), which shall include picked-up member contributions.
Additionally, the board of trustees may approve a final average salary based
upon the average of the three (3) highest salaries for members who are at least
fifty-five (55) years of age and have a minimum of twenty-seven (27) years of
Kentucky service credit. However, if any of the five (5) or three (3) highest
annual salaries used to calculate the final average salary was paid within the
three (3) years immediately prior to the date of the member's retirement, the
amount of salary to be included for each of those three (3) years for the
purpose of calculating the final average salary shall be limited to the lesser of:
(a) The member's actual salary; or
(b) The member's annual salary that was used for retirement purposes
during each of the prior three (3) years, plus a percentage increase equal
to the percentage increase received by all other members employed by
the public board, institution, or agency, or for members of school districts,
the highest percentage increase received by members on any one (1)
rank and step of the salary schedule of the school district. The increase
shall be computed on the salary that was used for retirement purposes.
This limitation shall not apply if the member receives an increase in salary in a
percentage exceeding that received by the other members, and this increase
was accompanied by a corresponding change in position or in length of
employment. This limitation shall also not apply to the payment to a member for
accrued annual leave if the individual becomes a member before July 1, 2008,
or accrued sick leave which is authorized by statute and which shall be
included as part of a retiring member's annual compensation for the member's
last year of active service;
(10) "Annual compensation" means the total salary received by a member as
compensation for all services performed in employment covered by the
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retirement system during a fiscal year. Annual compensation shall not include
payment for any benefit or salary adjustments made by the public board,
institution, or agency to the member or on behalf of the member which is not
available as a benefit or salary adjustment to other members employed by that
public board, institution, or agency. Annual compensation shall not include the
salary supplement received by a member under KRS 157.197(2)(c), 158.6455,
or 158.782 on or after July 1, 1996. Under no circumstances shall annual
compensation include compensation that is earned by a member while on
assignment to an organization or agency that is not a public board, institution,
or agency listed in subsection (4) of this section. In the event that federal law
requires that a member continue membership in the retirement system even
though the member is on assignment to an organization or agency that is not a
public board, institution, or agency listed in subsection (4) of this section, the
member's annual compensation for retirement purposes shall be deemed to be
the annual compensation, as limited by subsection (9) of this section, last
earned by the member while still employed solely by and providing services
directly to a public board, institution, or agency listed in subsection (4) of this
section. The board of trustees shall determine if any benefit or salary
adjustment qualifies as annual compensation. For an individual who becomes
a member on or after July 1, 2008, annual compensation shall not include
lump-sum payments upon termination of employment for accumulated annual
or compensatory leave;
"Age of member" means the age attained on the first day of the month
immediately following the birthdate of the member. This definition is limited to
retirement eligibility and does not apply to tenure of members;
"Employ," and derivatives thereof, means relationships under which an
individual provides services to an employer as an employee, as an
independent contractor, as an employee of a third party, or under any other
arrangement as long as the services provided to the employer are provided in
a position that would otherwise be covered by the Kentucky Teachers'
Retirement System and as long as the services are being provided to a public
board, institution, or agency listed in subsection (4) of this section;
"Regular interest" means interest at three percent (3%) per annum, except for
an individual who becomes a member on or after July 1, 2008, "regular
interest" means interest at two and one-half percent (2.5%) per annum for
purposes of crediting interest to the teacher savings account or any other
contributions made by the employee that are refundable to the employee upon
termination of employment;
"Accumulated contributions" means the contributions of a member to the
teachers' savings fund, including picked-up member contributions as described
in KRS 161.540(2), plus accrued regular interest;
"Annuitant" means a person who receives a retirement allowance or a disability
allowance;
"Local retirement system" means any teacher retirement or annuity system
created in any public school district in Kentucky in accordance with the laws of
Kentucky;
"Fiscal year" means the twelve (12) month period from July 1 to June 30. The
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retirement plan year is concurrent with this fiscal year. A contract for a member
employed by a local board of education may not exceed two hundred sixty-one
(261) days in the fiscal year;
"Public schools" means the schools and other institutions mentioned in
subsection (4) of this section;
"Dependent" as used in KRS 161.520 and 161.525 means a person who was
receiving, at the time of death of the member, at least one-half (1/2) of the
support from the member for maintenance, including board, lodging, medical
care, and related costs;
"Active contributing member" means a member currently making contributions
to the Teachers' Retirement System, who made contributions in the next
preceding fiscal year, for whom picked-up member contributions are currently
being made, or for whom these contributions were made in the next preceding
fiscal year;
"Full-time" means employment in a position that requires services on a
continuing basis equal to at least seven-tenths (7/10) of normal full-time service
on a fiscal year basis;
"Full actuarial cost," when used to determine the payment that a member must
pay for service credit means the actuarial value of all costs associated with the
enhancement of a member's benefits or eligibility for benefit enhancements,
including health insurance supplement payments made by the retirement
system. The actuary for the retirement system shall determine the full actuarial
value costs and actuarial cost factor tables as provided in KRS 161.400;
"Last annual compensation" means the annual compensation, as defined by
subsection (10) of this section and as limited by subsection (9) of this section,
earned by the member during the most recent period of contributing service,
either consecutive or nonconsecutive, that is sufficient to provide the member
with one (1) full year of service credit in the Kentucky Teachers' Retirement
System, and which compensation is used in calculating the member's initial
retirement allowance, excluding bonuses, retirement incentives, payments for
accumulated sick, annual, personal and compensatory leave, and any other
lump-sum payment. For an individual who becomes a member on or after July
1, 2008, payments for annual or compensatory leave shall not be included in
determining the member's last annual compensation;
"Participant" means a member, as defined by subsection (4) of this section, or
an annuitant, as defined by subsection (15) 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; and
"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.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 104, sec. 4, effective April 8, 2010; ch. 148,
sec. 9, effective July 15, 2010; and ch. 164, sec. 3, effective July 1, 2010. -Amended 2008 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 29, effective June 27,
2008. -- Amended 2008 Ky. Acts ch. 78, sec. 2, effective July 1, 2008. -Amended 2006 Ky. Acts ch. 211, sec. 91, effective July 12, 2006. -- Amended
2004 Ky. Acts ch. 121, sec. 1, effective July 1, 2004. -- Amended 2002 Ky. Acts
ch. 275, sec. 3, effective July 1, 2002; and ch. 300, sec. 4, effective July 15,
2002. -- Amended 2001 Ky. Acts ch. 51, sec. 1, effective June 21, 2001; and
ch. 137, sec. 15, effective June 21, 2001. -- Amended 2000 Ky. Acts ch. 498,
sec. 5, effective July 1, 2000. -- Amended 1998 Ky. Acts ch. 50, sec. 3, effective
July 1, 1998; and ch. 515, sec. 2, effective July 1, 1998. -- Amended 1997 (1st
Extra. Sess.) Ky. Acts ch. 1, sec. 68, effective May 30, 1997. -- Amended 1996
Ky. Acts ch. 271, sec. 10, effective July 15, 1996; and ch. 359, sec. 2, effective
July 1, 1996. -- Amended 1994 Ky. Acts ch. 369, sec. 1, effective July 1, 1994;
and ch. 469, sec. 34, effective July 15, 1994. Amended 1992 Ky. Acts ch. 192,
sec. 1, effective July 1, 1992; and ch. 357, sec. 2, effective July 14, 1992. -Amended 1990 Ky. Acts ch. 442, sec. 1, effective July 13, 1990; ch. 470,
sec. 54, effective July 13, 1990; and ch. 476, Pt. IV, sec. 243, effective July 13,
1990. -- Amended 1988 Ky. Acts ch. 363, sec. 1, effective July 1, 1988. -Amended 1986 Ky. Acts ch. 440, sec. 1, effective July 1, 1986. -- Amended
1984 Ky. Acts ch. 253, sec. 3, effective July 1, 1984; and ch. 302, sec. 1,
effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 166, sec. 11, effective
July 15, 1982. -- Amended 1978 Ky. Acts ch. 152, sec. 1, effective March 28,
1978. -- Amended 1976 Ky. Acts ch. 351, sec. 1, effective July 1, 1976. -Amended 1974 Ky. Acts ch. 395, sec. 1. -- Amended 1972 Ky. Acts ch. 82,
sec. 1. -- Amended 1968 Ky. Acts ch. 136, sec. 1. -- Amended 1966 Ky. Acts
ch. 16, sec. 1; and ch. 255, sec. 152. -- Amended 1964 Ky. Acts ch. 43, sec. 1.
-- Amended 1962 Ky. Acts ch. 64, sec. 1. -- Amended 1960 Ky. Acts ch. 44,
sec. 1. -- Amended 1954 Ky. Acts ch. 196, secs. 1 and 2. -- Amended 1946 Ky.
Acts ch. 111, sec. 1. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective
October 1, 1942, from Ky. Stat. sec. 4506b-2.
Legislative Research Commission Note (7/15/2010). This section was amended
by 2010 Ky. Acts chs. 104, 148, and 164, which do not appear to be in conflict
and have been codified together.
Legislative Research Commission Note (7/13/90). This section was amended by
three Acts. Where those Acts are not in conflict, they have been compiled
together. Where a conflict exists, the Act which was last enacted by the General
Assembly prevails.
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