2013 Kentucky Revised Statutes CHAPTER 161 - SCHOOL EMPLOYEES -- TEACHERS' RETIREMENT AND TENURE 161.605 Resumption of employment by retired member -- Continuation of retirement allowance -- Waiver of annuity -- Nonteaching employment.
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161.605 Resumption of employment by retired member -- Continuation of
retirement allowance -- Waiver of annuity -- Nonteaching employment.
Any member retired by reason of service may return to work in a position covered by
the Kentucky Teachers Retirement System and continue to receive his or her
retirement allowance under the following conditions:
(1) Any member who is retired with thirty (30) or more years of service may return
to work in a full-time or a part-time position covered by the Kentucky Teachers
Retirement System and earn up to a maximum of seventy-five percent (75%) of
the members last annual compensation measured on a daily rate to be
determined by the board of trustees. For purposes of determining whether the
salary of a member returning to work is seventy-five percent (75%) or less of
the members last annual compensation, all remuneration paid and benefits
provided to the member, on an actual dollar or fair market value basis as
determined by the retirement system, shall be considered. Members who were
retired on or before June 30, 2002, shall be entitled to return to work under the
provisions of this section as if they had retired with thirty (30) years of service.
Nonqualified service credit purchased under the provisions of KRS 161.5465 or
elsewhere with any state-administered retirement system shall not be used to
meet the thirty (30) year requirement set forth in this subsection. Out-of state
teaching service provided in public schools for kindergarten through grade
twelve (12) may count toward the thirty (30) year requirement set forth in this
subsection even if it is not purchased as service credit, if the member obtains
from his or her out-of-state employer certification of this service on forms
prescribed by the retirement system;
(2) Any member who is retired with less than thirty (30) years of service after June
30, 2002, may return to work in a full-time or part-time position covered by the
Kentucky Teachers Retirement System and earn up to a maximum of
sixty-five percent (65%) of the members last annual compensation measured
on a daily rate to be determined by the board of trustees. For purposes of
determining whether the salary of a member returning to work is sixty-five
percent (65%) or less of the members last annual compensation, all
remuneration paid and benefits provided to the member, on an actual dollar or
fair market value basis as determined by the retirement system, shall be
considered;
(3) Reemployment of a retired member under subsection (1) or (2) of this section
in a full-time teaching or nonteaching position in a local school district shall be
permitted only if the employer certifies to the Kentucky Teachers Retirement
System that there are no other qualified applicants available to fill the teaching
or nonteaching position. The employer may use any source considered reliable
including but not limited to data provided by the Education Professional
Standards Board and the Department of Education to determine whether other
qualified applicants are available to fill the teaching or nonteaching position.
The Kentucky Board of Education shall promulgate administrative regulations
to establish procedures to determine whether other qualified applicants are
available to fill a teaching or nonteaching position and, if not, for filling the
position with a retired member who will then be permitted to return to work in
that position under subsection (1) or (2) of this section. The administrative
(4)
(5)
regulations shall assure that a retired member shall not be hired in a teaching
or nonteaching position by a local school district until the superintendent of the
school district assures the Kentucky Teachers' Retirement System that every
reasonable effort has been made to recruit other qualified applicants for the
position on an annual basis;
Under this section, an employer may employ full-time a number of retired
members not to exceed three percent (3%) of the membership actively
employed full-time by that employer. The board of trustees may reduce this
three percent (3%) cap upon recommendation of the retirement systems
actuary if a reduction is necessary to maintain the actuarial soundness of the
retirement system. The board of trustees may increase the three percent (3%)
cap upon a determination that an increase is warranted to help address a
shortage in the number of available teachers and upon the determination of the
retirement system's actuary that the proposed cap increase allows the actuarial
soundness of the retirement system to be maintained. For purposes of this
subsection, "full-time" means the same as defined by KRS 161.220(21). A local
school district may exceed the quota established by this subsection by making
an annual written request to the Kentucky Department of Education which the
department may approve on a year-by-year basis if the statewide quota has
not been met. A district's written request to exceed its quota shall be submitted
no sooner than two (2) weeks after the start of the school year;
A member returning to work in a full-time or part-time position under subsection
(1) or (2) of this section will contribute to an account with the retirement system
that will be administered independently from and with no reciprocal impact with
the members original retirement account, or any other account from which the
member is eligible to draw a retirement allowance. A member returning to work
under subsection (1) or (2) of this section shall make contributions to the
retirement system at the rate provided under KRS 161.540. The new account
shall independently meet the five (5) year vesting requirement as well as all
other conditions set forth in KRS 161.600(1) before any retirement allowance is
payable from this account. The retirement allowance accruing under this new
account shall be calculated pursuant to KRS 161.620(1)(b). This new account
shall not entitle the member to a duplication of the benefits offered under KRS
161.620(7) or 161.675, nor shall this new account provide the benefits offered
by KRS 161.520, 161.525, 161.620(3), 161.655, 161.661, or 161.663. A
member returning to work under subsection (1) or (2) of this section shall waive
his or her medical insurance with the Kentucky Teachers Retirement System
during the period of reemployment and shall receive the medical insurance
coverage that is generally provided by the members active employer to the
other members of the retirement system that the active employer employs. If
medical insurance coverage is not available from the employer, the Kentucky
Teachers Retirement System may provide coverage for the member. A
member returning to work under subsection (1) or (2) of this section shall not
be eligible to purchase service credit for any service provided after the
member's effective date of retirement but prior to the date that the member
returns to work. A member returning to work under subsection (1) or (2) of this
section shall not be eligible to purchase service credit that the member would
have otherwise been eligible to purchase prior to the member's initial
(6)
(7)
retirement. A member who returns to work under subsection (1) or (2) of this
section, or in the event of the death of the member, the members estate or
applicably designated beneficiary, shall be entitled, within ninety (90) days of
the posting of the annual report submitted by the employer, to a refund of
contributions as permitted and limited by KRS 161.470;
The board of trustees may annually, on July 1, adjust the current daily rate of a
members last annual compensation, for each full twelve (12) month period
that has elapsed subsequent to the member earning his or her last annual
compensation, by the percentage increase in the annual average of the
consumer price index for all urban consumers for the calendar year preceding
the adjustment as published by the Federal Bureau of Labor Statistics, not to
exceed five percent (5%) annually. Each annual adjustment shall become part
of the member's daily rate base. Failure to comply with the salary limitations set
forth in subsections (1) and (2) of this section as may be adjusted by this
subsection shall result in a reduction of the members retirement allowance or
any other benefit to which the member would otherwise be entitled on a
dollar-for-dollar basis for each dollar that the member exceeds these salary
limitations. Notwithstanding any other provision of law to the contrary, a
member retiring from a local school district who returns to work for a local
school district under subsection (1) or (2) of this section shall be entitled,
without any reduction to his or her retirement allowance or any other retirement
benefit, to earn a minimum amount equal to one hundred seventy dollars
($170) per day;
(a) A retired member returning to work under subsection (1) or (2) of this
section shall have separated from service for a period of at least one (1)
year if returning to work for the same employer on a full-time basis, and at
least three (3) months if returning to work for a different employer on a
full-time basis. A retired member returning to work under subsection (1) or
(2) of this section on a part-time basis shall have separated from service
for a period of at least three (3) months before returning to work for any
employer.
(b) As an alternative to the separation-from-service requirements in
paragraph (a) of this subsection, a retired member who is returning to
work for the same employer in a full-time position under subsections (1)
and (2) of this section may elect a separation-from-service of not less
than two (2) months followed by a forfeiture of the retired member's
retirement allowance on a month-to-month basis for each month that the
member has separated from service for less than twelve (12) full months.
A retired member returning to work for the same employer in a part-time
position, or for a different employer in a full-time position, may elect an
alternative separation-from-service requirement of at least two (2) months
followed by a forfeiture of the member's retirement allowance for one (1)
month. During the period that the member forfeits his or her retirement
allowance and thereafter, member and employer contributions shall be
made to the retirement system as a result of employment in any position
subject to membership in the retirement system. The member shall
contribute to an account with the retirement system subject to the
conditions set forth in subsection (5) of this section. For purposes of
(8)
(9)
measuring the separation-from-service requirements set forth throughout
this section, a member's separation-from-service begins on the first day
following the last day of paid employment for the member prior to
retirement.
(c) Failure to comply with the separation-from-service requirements in this
subsection voids a members retirement and the member shall be
required to return all the retirement benefits he or she received, with
interest, for the period of time that the member returned to work without a
sufficient separation from service;
(a) Effective July 1, 2004, local school districts may employ retired members
in full-time or part-time teaching or administrative positions without
limitation on the compensation of the retired members that is otherwise
required by subsections (1) and (2) of this section. Under provisions of
this subsection, a local school district may only employ retired members
to fill critical shortage positions for which there are no other qualified
applicants as determined by the local superintendent. The number of
retired members that a local school district may employ under this
subsection shall be no more than two (2) members per local school
district or one percent (1%) of the total active members employed by the
local school district on a full-time basis as defined under KRS
161.220(21), whichever number is greater. Retired members returning to
work under this subsection shall be subject to the separation-from-service
requirements set forth in subsection (7) of this section. Retired members
returning to work under this subsection shall waive their medical
insurance coverage with the retirement system during their period of
reemployment and receive medical insurance coverage that is offered to
other full-time members employed by the local school district. Retired
members returning to work under this subsection shall contribute to an
account subject to the conditions set forth in subsection (5) of this section.
Retired members returning to work under this subsection shall make
contributions to the retirement system at the rate provided under KRS
161.540. The employer shall make contributions at the rate provided
under KRS 161.550. Local school districts shall make annual payments to
the retirement system on the compensation paid to the reemployed
retirees at the rates determined by the retirement system's actuary that
reflect any accrued liability resulting from the reemployment of these
members.
(b) The Department of Education may employ retired members in full-time or
part-time teaching or nonteaching positions without the limitations on
compensation otherwise required by subsections (1) and (2) of this
section to fill critical shortage areas in the schools it operates, including
the Kentucky School for the Blind, the Kentucky School for the Deaf, and
the Kentucky Virtual High School, and to serve on audit teams. The
department shall be subject to the same requirements as local school
districts as provided in paragraph (a) of this subsection, except the
Kentucky Teachers' Retirement System shall determine the maximum
number of employees that may be employed under this paragraph;
The return to work limitations set forth in this section shall apply to retired
members who are returning to work in the same position from which they
retired, or a position substantially similar to the one from which they retired, or
a position described in KRS 161.046 or any position listed in KRS 161.220(4)
which requires membership in the retirement system. Positions which generally
require certification or graduation from a four (4) year college or university as a
condition of employment which are created, or changed to remove the position
from coverage under KRS 161.220(4) are also subject to the return to work
limitations set forth in this section. The board of trustees shall determine
whether employment in a nonteaching position is subject to this subsection;
(10) The provisions of subsections (1) to (8) of this section are not subject to KRS
161.714;
(11) Any member retired by reason of service may waive his or her annuity and
return to full-time employment in a position covered by the Kentucky Teachers'
Retirement System under the following conditions:
(a) The member shall receive no annuity payments while employed in a
covered position, shall waive his or her medical insurance coverage with
the Kentucky Teachers' Retirement System during the period of
reemployment, and shall receive the medical insurance coverage that is
generally offered by the member's active employer to the other members
of the retirement system employed by the active employer. The member's
estate or, if there is a beneficiary applicably designated by the member,
then the beneficiary, shall continue to be eligible for life insurance benefits
as provided in KRS 161.655. Service subsequent to retirement shall not
be used to improve an annuity, except as provided in paragraphs (b) and
(c) of this subsection;
(b) Any member who waives regular annuity benefits and returns to teaching
or covered employment shall be entitled to make contributions on the
salaries received for this service and have his retirement annuity
recalculated as provided in the regular retirement formula in KRS
161.620(1), less any applicable actuarial discount applied to the original
retirement allowance due to the election of a joint and last survivor option.
Retirement option and beneficiary designation on original retirement shall
not be altered by postretirement employment, and dependents and
spouses of the members shall not become eligible for benefits under KRS
161.520, 161.525, or 161.661 because of postretirement employment;
(c) When a member returns to full-time teaching or covered employment as
provided in subsection (b) of this section, the employer is required to
withhold and remit regular retirement contributions. The member must be
employed full-time for at least one (1) consecutive contract year to be
eligible to improve an annuity. The member shall be returned to the
annuity rolls on July 1 following completion of the contract year or on the
first day of the month following the month of termination of service if
full-time employment exceeds one (1) consecutive contract year. Any
discounts applied at the time of the original retirement due to service or
age may be reduced or eliminated due to additional employment if
full-time employment is for one (1) consecutive contract year or longer;
and
(d)
A member retired by reason of service who has been employed the
equivalent of twenty-five (25) days or more during a school year under
KRS 161.605 may waive the member's retirement annuity and return to
regular employment covered by the Kentucky Teachers' Retirement
System during that school year a maximum of one (1) time during any five
(5) year period, beginning with that school year;
(12) Retired members may be employed in a part-time teaching capacity by an
agency described in KRS 161.220(4)(b) or (n), not to exceed the equivalent of
twelve (12) teaching hours in any one (1) fiscal year. Retired members may be
employed for a period not to exceed the equivalent of one hundred (100) days
in any one (1) fiscal year in a part-time administrative or nonteaching capacity
by an agency described in KRS 161.220(4)(b) or (n) in a position that would
otherwise be covered by the retirement system. The return to work provisions
set forth in subsections (1) to (8) of this section shall not apply to retired
members who return to work solely for an agency described in KRS
161.220(4)(b) or (n). Calculation of the number of days and teaching hours for
part-time teaching, substitute teaching, or part-time employment in a
nonteaching capacity under this section shall not exceed the ratio between a
school year and the actual months of retirement for the member during that
school year. The board of trustees by administrative regulation may establish
fractional equivalents of a day of teaching service. Any member who exceeds
the twelve (12) hour or one hundred (100) day limitations of this subsection
shall be subject to having his or her retirement voided and be required to return
all retirement allowances and other benefits paid to the member or on the
member's behalf since the effective date of retirement. In lieu of voiding a
member's retirement, the system may reduce the member's retirement
allowance or any other benefit to which the member would otherwise be
entitled on a dollar-for-dollar basis for each dollar of compensation that the
member earns in employment exceeding twelve (12) hours, one hundred (100)
days, or any apportionment of the two (2) combined;
(13) When a retired member returns to employment in a part-time teaching capacity
or in a nonteaching capacity as provided in subsection (12) of this section, the
employer shall contribute annually to the retirement system on the
compensation paid to the retired member at rates determined by the retirement
system actuary that reflect accrued liability for retired members who return to
work under subsection (12) of this section; and
(14) For retired members who return to work during any one (1) fiscal year in both a
position described in KRS 161.220(4)(b) or (n) and in a position described
under another provision under KRS 161.220(4), and for retired members who
return to work in a position described under KRS 161.220(4)(b) or (n) in both a
teaching and an administrative or nonteaching capacity, the board of trustees
shall adopt a methodology for a pro rata apportionment of days and hours that
the retired member may work in each position.
Effective:July 1, 2010
History: Amended 2010 Ky. Acts ch. 164, sec. 9, effective July 1, 2010. -Amended 2008 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 38, effective June 27,
2008. -- Amended 2008 Ky. Acts ch. 78, sec. 14, effective July 1, 2008. -Amended 2004 Ky. Acts ch. 121, sec. 16, effective July 1, 2004. -- Amended
2002 Ky. Acts ch. 275, sec. 25, effective July 1, 2002. -- Amended 2000 Ky.
Acts ch. 477, sec. 2, effective July 14, 2000; and ch. 498, sec. 16, effective July
1, 2000. -- Amended 1998 Ky. Acts ch. 515, sec. 11, effective July 1, 1998. -Amended 1996 Ky. Acts ch. 359, sec. 14, effective July 1, 1996. -- Amended
1992 Ky. Acts ch. 192, sec. 11, effective July 1, 1992. -- Amended 1990 Ky.
Acts ch. 442, sec. 15, effective July 1, 1990; and ch. 476, Pt. V, sec. 562,
effective July 13, 1990. -- Amended 1980 Ky. Acts ch. 102, sec. 1, effective July
15, 1980. -- Amended 1972 Ky. Acts ch. 82, sec. 19. -- Amended 1964 Ky. Acts
ch. 43, sec. 14. -- Amended 1958 Ky. Acts ch. 10, sec. 1. -- Created 1952 Ky.
Acts ch. 226, sec. 1.
Legislative Research Commission Note (7/1/2004) In subsection (13) of this
statute, two references to "subsection (11) of this section" have been changed to
read "subsection (12) of this section." When the statute was amended in 2004
Ky. Acts ch. 121, sec. 16, the subsections were renumbered, but the references
to subsection (11) were not changed to conform. The Reviser of Statutes has
made the conforming change under the authority of KRS 7.136.
Legislative Research Commission Note (7/1/2004) 2004 Ky. Acts ch. 121,
sec. 27, provides that "The provisions of subsection (8) of Section 16 of this Act
[KRS 161.605] supersede the provisions relating to critical shortage positions
set forth in 2003 Ky. Acts ch. 156, sec. 1 [Executive Branch Budget Bill]."
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 sec. 653(1) of Acts ch. 476.
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