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161.470 Membership -- Forfeiture of service credit -- Termination of
membership -- Forfeiture of benefits -- Reinstatement -- Payment of
accumulated contributions.
(1)
(2)
(3)
(4)
(5)
The membership of the retirement system shall consist of all new members, all
present teachers, and all persons participating under the retirement system as
of June 30, 1986, except as provided in Acts 1938 (1st Ex. Sess.), Ch. 1,
paragraph 29. The board of trustees of the Teachers' Retirement System shall
be responsible for final determination of membership eligibility and may direct
employers to take whatever action that may be necessary to correct any error
relating to membership.
Service credit shall be forfeited upon withdrawal. If a member again enters
service it shall be as a new member, except that any teacher who withdraws by
claiming his deposits may repay the system the amount withdrawn plus interest
and reestablish his service credit as provided in subsection (3) of this section.
Effective July 1, 1988, and thereafter, an active contributing member of the
retirement system with contributing service equal to one (1) year may regain
service credit by depositing in the teachers' savings fund the amount withdrawn
with interest at the rate to be set by the board of trustees, and computed from
the first of the month of withdrawal and including the month of redeposit.
Effective July 1, 1974, any active contributing member with at least two (2)
years of contributing service credit who declined membership as provided in
Acts 1938 (1st Ex. Sess.), Ch. 1, paragraph 29, may secure service credit for
prior service, and for any subsequent service prior to date of membership, by
depositing in the teachers' savings fund contributions for each year of
subsequent service prior to date of membership, with interest at the rate of
eight percent (8%) compounded annually to the date of deposit.
Membership in the retirement system shall be terminated:
(a) By retirement for service;
(b) By death;
(c) By withdrawal of the member's accumulated contributions;
(d) When a member, having less than five (5) years of Kentucky service is
absent from service for more than three (3) consecutive years; or
(e) For persons hired on or after August 1, 2000, when a member is
convicted, in any state or federal court of competent jurisdiction, of a
felony related to his employment as provided in subparagraphs 1. and 2.
of this paragraph.
1.
Notwithstanding any provision of law to the contrary, a member
hired on or after August 1, 2000, who is convicted, in any state or
federal court of competent jurisdiction, of a felony related to his
employment shall forfeit rights and benefits earned under the
retirement system, except for the return of his accumulated
contributions and interest credited on those contributions.
2.
The payment of retirement benefits ordered forfeited shall be stayed
pending any appeal of the conviction. If the conviction is reversed on
final judgment, no retirement benefits shall be forfeited.
(6)
(7)
(8)
Except for paragraph (e) of this subsection, upon termination of member
accounts under this subsection, funds in the account shall be transferred to the
guarantee fund. Inactive members may apply for refunds of these funds at any
time. The terminated service shall be reinstated, if not withdrawn by the
member, in the event that the member returns to active contributing service.
In case of withdrawal from service prior to eligibility for retirement, the board of
trustees shall on request of the member return all of his accumulated
contributions with regular interest, including any payments made by the
member to the state accumulation fund, but the member shall have no claim on
any contributions made by the state with a view to his retirement or to
contributions made to the medical insurance fund. If the member is eligible for
an immediate service retirement allowance as provided in KRS 161.600, no
withdrawal and refund shall be permitted, unless the allowance would prohibit
the member from qualifying for Social Security benefits or the member elects to
withdraw part or all of his service for the purpose of obtaining credit in another
retirement plan. Requests for refund of contributions by the member must be
filed on forms prescribed by the Teachers' Retirement System and the
employer shall be financially responsible for all information that is certified on
the prescribed form. A member may not withdraw any part of his or her
contributions to the retirement system except as provided by this subsection.
Except as provided in KRS 161.520 and 161.525, in case of death prior to
retirement, the board of trustees shall pay to the estate of the deceased
member, unless a beneficiary was otherwise applicably designated by the
deceased member, then to the beneficiary, all of his accumulated contributions,
with regular interest, including any payments made by the member to the state
accumulation fund, but the estate or beneficiary shall have no claim on any
contributions made by the state with a view to the retirement of the member or
to contributions made to the medical insurance fund.
Any active contributing member of the Kentucky Employees Retirement
System, the County Employees Retirement System, the State Police
Retirement System, or the Judicial Retirement System may use service, under
that retirement system for the purpose of meeting the service requirement of
subsections (3) and (4) of this section.
Effective:July 1, 2002
History: Amended 2002 Ky. Acts ch. 275, sec. 11, effective July 1, 2002. -Amended 2000 Ky. Acts ch. 273, sec. 2, effective July 14, 2000. -- Amended
1990 Ky. Acts ch. 442, sec. 4, effective July 1, 1990; and ch. 476, Pt. V,
sec. 503, effective July 13, 1990. -- Amended 1988 Ky. Acts ch. 363, sec. 5,
effective July 1, 1984. -- Amended 1982 Ky. Acts ch. 326, sec. 6, effective July
1, 1982. -- Amended 1980 Ky. Acts ch. 206, sec. 2, effective July 1, 1980. -Amended 1978 Ky. Acts ch. 152, sec. 5, effective March 28, 1978. -- Amended
1976 Ky. Acts ch. 351, sec. 5, effective July 1, 1976. -- Amended 1974 Ky. Acts
ch. 395, sec. 7. -- Amended 1972 Ky. Acts ch. 82, sec. 9. -- Amended 1968 Ky.
Acts ch. 136, sec. 4. -- Amended 1964 Ky. Acts ch. 43, sec. 7. -- Amended 1962
Ky. Acts ch. 64, sec. 5. -- Amended 1960 Ky. Acts ch. 44, sec. 8. -- Recodified
1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat.
sec. 4506b-27.
Legislative Research Commission Note (7/13/90). The Act amending this section
prevails over the repeal and reenactment in House Bill 940, Acts Ch. 476,
pursuant to Section 653(1) of Acts Ch. 476.
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