2013 Kentucky Revised Statutes CHAPTER 161 - SCHOOL EMPLOYEES -- TEACHERS' RETIREMENT AND TENURE 161.568 Eligibility to participate in optional retirement plan -- Election to change from optional retirement plan to Kentucky Teachers' Retirement System.
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161.568 Eligibility to participate in optional retirement plan -- Election to
change from optional retirement plan to Kentucky Teachers' Retirement
System.
(1)
Eligibility to participate in the optional retirement plan shall be determined by
the board of regents of each of the state public postsecondary education
institutions identified in KRS 161.220(4)(b). The employees of these institutions
of higher education who are initially employed on or after the implementation
date of the optional retirement plan may make an election to participate in the
optional retirement plan within thirty (30) days after their employment date. This
election shall be irrevocable except as otherwise provided in this subsection.
No member of the Kentucky Teachers' Retirement System who terminates
employment and is subsequently reemployed by the same or another public
postsecondary education institution which participates in the Kentucky
Teachers' Retirement System may be eligible to elect to participate in the
optional retirement plan unless the date of reemployment is at least six (6)
months after the date of termination. All elections made under this subsection
shall be in writing and shall be filed with the appropriate officer of the employer
institution. Persons who originally elected to participate in the optional
retirement plan may later change their elections only as follows:
(a) Any person otherwise eligible for membership in the Kentucky Teachers'
Retirement System may irrevocably elect one (1) time during his or her
lifetime to change his or her election and to prospectively participate in
the Kentucky Teachers' Retirement System. This election to change from
the optional retirement plan to Kentucky Teachers' Retirement System
shall be effective beginning on the first day of the first month immediately
following the date that written application for the election is received in the
retirement system's office on forms prescribed by the system. Any person
exercising this election shall not be entitled to purchase as service credit
in the Kentucky Teachers' Retirement System any prior service with his or
her postsecondary education institution employer;
(b) Any person otherwise eligible for membership in the Kentucky Teachers'
Retirement System who previously elected to participate in the optional
retirement plan may irrevocably elect one (1) time within his or her first six
(6) years and six (6) months of continuous service in any one (1) or more
of the institutions identified in KRS 161.220(4)(b), to change his or her
election and to prospectively participate in the Kentucky Teachers'
Retirement System and also become eligible to purchase as service
credit his or her prior service with his or her postsecondary education
employer. This election to change from the optional retirement plan to the
Kentucky Teachers' Retirement System shall be effective beginning on
the first day of the first month immediately following the date that written
application for the election is received in the retirement system's office on
forms prescribed by the retirement system. Persons electing to change
from the optional retirement plan to the Kentucky Teachers' Retirement
System may purchase service credit only for their prior years of service
for a postsecondary education institution identified in KRS 161.220(4)(b)
during which they participated in the optional retirement plan. The election
to purchase prior service as service credit shall be received in the
(c)
(d)
retirement system's office on forms prescribed by the retirement system
within the six (6) year and six (6) month period provided to make the
election to begin participation in the Kentucky Teachers' Retirement
System. The cost of purchasing this service shall be calculated by adding
both the employer and member contributions that would have been paid
to the Kentucky Teachers' Retirement System had the individual
purchasing this service participated in the Kentucky Teachers' Retirement
System instead of the optional retirement plan, less the amount
contributed to the Kentucky Teachers' Retirement System by the
postsecondary education institution as provided by KRS 161.569(5), or
KRS 161.569(5)(a)2. as it existed on June 30, 2007. Interest at Kentucky
Teachers' Retirement System's actuarially assumed rate shall be paid on
these net contributions by the person electing to change to the Kentucky
Teachers' Retirement System from the optional retirement plan. These
payments shall not be picked up as described in KRS 161.540(2).
Persons who elect to change from the optional retirement plan to the
Kentucky Teachers' Retirement System may elect to purchase as service
credit, beginning with the most recent years, any portion of their prior
years of service during which time they participated in the optional
retirement plan, or none of those years. Members may purchase service
credit for prior years of service by rolling over funds from their optional
retirement plan account as provided under KRS 161.5461, or by rolling
over or transferring other plan funds as permitted by the rules set forth in
the Internal Revenue Code, or by making an after-tax lump-sum cash
payment;
Effective July 1, 2008, persons otherwise eligible for membership in the
Kentucky Teachers' Retirement System may irrevocably elect one (1)
time to change their election and to prospectively participate in the
Kentucky Teachers' Retirement System and purchase service credit for
their prior years of service during which they participated in the optional
retirement plan. This election shall be filed in writing with the Kentucky
Teachers' Retirement System no later than December 31, 2008. Persons
who change their election prior to July 1, 2008, to prospectively
participate in the Kentucky Teachers' Retirement System may purchase
service credit for their prior years of service during which they participated
in the optional retirement plan. The purchase of prior years of service
under this paragraph shall be subject to the same conditions and
purchase costs as described in paragraph (b) of this subsection, except
that the election to purchase service credit shall be on file with the
Kentucky Teachers' Retirement System no later than December 31, 2008;
and
Persons electing to change to the Kentucky Teachers' Retirement System
under paragraphs (a), (b), and (c) of this subsection shall be eligible to
participate, based upon their age and allowable service credit, in the
disability, survivorship, and medical insurance programs under the
conditions and in the degree as they exist on the date that they file their
election with the retirement system, but shall be subject to any changes to
those programs from that date forward, including any changes that may
(2)
affect their eligibility for or degree of participation in those programs. Prior
service purchased as service credit as permitted under paragraphs (b)
and (c) of this subsection shall not be considered for meeting eligibility
requirements or determining the extent of participation in these programs.
Persons electing to change to the Kentucky Teachers' Retirement System
shall not be eligible for the survivorship or disability programs based upon
medical conditions that existed prior to the filing of their elections.
Elections of eligible employees hired on or after the implementation date of the
optional retirement plan at their employer institution shall be effective on the
date of their employment. If an eligible employee hired subsequent to the
implementation date at the employer institution fails to make the election
provided for in this section, the employee shall become a member of the
regular retirement plan of the Kentucky Teachers' Retirement System.
Effective:April 7, 2008
History: Amended 2008 Ky. Acts ch. 11, sec. 2, effective April 7, 2008. -- Amended
2004 Ky. Acts ch. 121, sec. 25, effective July 1, 2004. -- Amended 1997 (1st
Extra. Sess.) Ky. Acts ch. 1, sec. 70, effective May 30, 1997. -- Amended 1996
Ky. Acts ch. 253, sec. 2, effective July 15, 1996. -- Created 1994 Ky. Acts
ch. 290, sec. 2, effective July 15, 1994.
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