2013 Kentucky Revised Statutes CHAPTER 6 - THE GENERAL ASSEMBLY 6.515 Terms of service to qualify -- Military service credit acquisition for members who began participating before January 1, 2014 -- Special provisions for active members who began participating before January 1, 2014.
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6.515 Terms of service to qualify -- Military service credit acquisition for
members who began participating before January 1, 2014 -- Special
provisions for active members who began participating before January 1,
2014.
(1)
(2)
Service credit in the Legislators' Retirement Plan shall be acquired only by
service as a legislator after July 1, 1980, while a member of the plan, by
transfer of credit as provided in KRS 6.505, or by purchase or transfer of credit
as provided in this section.
(a) 1.
Any active member who began participating in the Legislators'
Retirement Plan prior to January 1, 2014, who has at least five (5)
years of service credit in the Legislators' Retirement Plan, or his
beneficiary acting in his place if the member dies prior to retirement,
shall receive service credit for a maximum of four (4) years for his
period of service in the Armed Forces of the United States, if his
discharge therefrom is honorable and he has not been credited with
the service by any other retirement system administered by the
Commonwealth of Kentucky, by paying the retirement system
thirty-five percent (35%) of the actuarial cost of the service as
determined by the board of trustees, based on assumptions used in
the most recent biennial evaluation. The service credit shall be
awarded and the cost shall be determined in conformity with the rate
which applies to the legislator in question under KRS 6.520. Service
credit awarded under this subsection shall be equivalent, for all
purposes of the Legislators' Retirement Plan, to other service credit
earned in the plan.
2.
Any active member who began participating in the Legislators'
Retirement Plan prior to January 1, 2014, who has at least five (5)
years of service credit in the Legislators' Retirement Plan may
purchase and receive service credit for one (1) month of service for
each six (6) months of service in the reserves or the National Guard
by paying the retirement system one hundred percent (100%) of the
actuarial cost of the service as determined by the board of trustees,
based on the assumptions used in the most recent biennial
evaluation. The service credit shall be awarded and the cost shall be
determined in conformity with the rate that applies to the legislator in
question under KRS 6.520. Service credit awarded as provided in
this subsection shall be equivalent, for all purposes of the
Legislators' Retirement Plan, to other service credit earned in the
plan. The service in the military reserves or the National Guard shall
be treated as service earned prior to participation in the plan. The
purchase can be made by the member by transfer, if authorized
under subsection (7)(d) of this section, or in a lump-sum payment or
by installment payments, as set forth in paragraph (b) of this
subsection. The payment shall not be picked up by the employer as
provided in KRS 6.505(4).
(b) The member, if the member began participating in the Legislators'
Retirement Plan prior to January 1, 2014, may purchase all of his military
(3)
(4)
(5)
service credit at one (1) time, or in increments of no less than one (1)
year, unless there is a fraction remaining after all full years have been
paid for. Payment of the total or the increment may be made by lump-sum
or by monthly installments through payroll deduction. If the member
chooses to pay by installment, the cost of the service credit shall be
computed in the same manner as for a lump-sum payment, which shall be
the principal. Interest, at the annual actuarial rate in effect at the time
each payment is made, shall be added to each monthly payment at the
rate of one-twelfth (1/12) of the annual interest rate applied to the
declining principal amount. Installment purchases shall be for no less than
twelve (12) nor more than sixty (60) months. If the member leaves office
before completing his installment payments, he may satisfy his contract
by a lump-sum payment of the remaining principal amount, but no further
installment payments shall be accepted thereafter. In this case, the
member shall be credited with the military service credit for which he has
paid, in years or months but no fraction less than a full month, and any
payment remaining after credit for full months has been awarded shall be
returned to the member.
(c) The payments made under this section shall be considered accumulated
contributions of the member and shall not be picked up by the employer
under KRS 6.505(4).
In the event of divorce, rights to benefits shall be considered marital property
subject to the provisions of KRS 403.190.
A member who began participating in the Legislators' Retirement Plan prior to
January 1, 2014, who has qualified for benefits under KRS 6.525(1) may
transfer to the Legislators' Retirement Plan up to ten (10) years of service
credit which he has earned in a retirement system administered by Kentucky
Retirement Systems. If the member elects to transfer his service credit, the
system from which the transfer is made shall transfer to the legislators'
retirement fund an amount equal to the employee's and employer's
contributions attributable to that credit, together with interest on the
contributions from the date made to date of transfer at the actuarially assumed
interest rate of the system from which the transfer is made in effect at the time
the contributions were made, compounded annually at that same interest rate.
The member shall be entitled to the transferred service credit, at the rate at
which he qualifies under KRS 6.520, when he pays the total difference
between the amount of the funds transferred and the cost of the credit to the
Legislators' Retirement Plan, as determined by the actuary for the Legislators'
Retirement Plan. The member may pay by transfer, if authorized under
subsection (7)(d) of this section, by lump sum, or by increments, as provided
for in this section. The payments made under this section shall be considered
accumulated contributions of the member and shall not be picked up by the
employer under KRS 6.505(4).
(a) Any active member who began participating in the Legislators Retirement
Plan prior to January 1, 2014, who is vested in the Legislators Retirement
Plan under KRS 6.525 shall receive service credit for a maximum of four
(4) years each for his period of service as a Domestic Relations
Commissioner, a Master Commissioner, or a District Court Trial
(b)
(c)
Commissioner of the Commonwealth of Kentucky, or a combination
thereof, if the service has not been credited to the member's account with
any other public defined benefit plan, by paying the retirement system one
hundred percent (100%) of the actuarial cost of the service as determined
by the board of trustees, based on assumptions used in the most recent
biennial evaluation. The period of service to be purchased shall be
certified to the board of trustees by the custodian of the records. The
service credit shall be awarded and the cost shall be determined in
conformity with the rate that applies to the member in question under KRS
6.520. Service credit awarded under this subsection shall be equivalent,
for all purposes of the Legislators Retirement Plan, to other service credit
earned in the plan. The member may pay by transfer, by lump sum, or by
increments as set forth in this section. The payments made under this
section shall be considered accumulated contributions of the member and
shall not be picked up by the employer under KRS 6.505(4).
Any active member who began participating in the Legislators Retirement
Plan prior to January 1, 2014, who is vested in the Legislators Retirement
Plan under KRS 6.525, shall receive service credit for his period of
service to the United States Government, other than service in the Armed
Forces, if the service has not been credited to the member's account with
any other public defined benefit plan, by paying the retirement system one
hundred percent (100%) of the actuarial cost of the service as determined
by the board of trustees, based on assumptions used in the most recent
biennial evaluation. The period of service to be purchased shall be
certified to the board of trustees by the custodian of the records. The
service credit shall be awarded and the cost shall be determined in
conformity with the rate that applies to the member in question under KRS
6.520. Service credit awarded under this subsection shall be equivalent,
for all purposes of the Legislators Retirement Plan, to other service credit
earned in the plan. The member may pay by transfer, by lump sum, or by
increments as set forth in this section. The payments made under this
section shall be considered accumulated contributions of the member and
shall not be picked up by the employer under KRS 6.505(4).
Any member who began participating in the Legislators Retirement Plan
prior to January 1, 2014, who was in office on June 21, 2001, and who
was in active contributing status to the applicable retirement plan on June
21, 2001, and who has at least one hundred eighty (180) months of
service credit may purchase a combined maximum total of five (5) years
of retirement service credit that is not otherwise purchasable, by paying
the retirement system one hundred percent (100%) of the actuarial cost of
the service as determined by the board of trustees, based on
assumptions used in the most recent biennial evaluation. The member
shall be entitled to the service credit at the rate at which he qualifies
under KRS 6.520. Service credit awarded under this subsection shall be
equivalent, for all purposes of the Legislators Retirement Plan, to other
service credit earned in the plan, except that the service purchased under
this subsection shall not be used in determining a retirement allowance
until the member has accrued at least two hundred forty (240) months of
(d)
service, excluding service purchased under this subsection. If the
member does not accrue at least two hundred forty (240) months of
service, excluding service purchased under this subsection, then upon
retirement, death, or written request following termination, the payment
shall be refunded. The member may pay by transfer, by lump sum, or by
increments as set forth in this section. The payments made under this
section shall be considered accumulated contributions of the member and
shall not be picked up by the employer under KRS 6.505(4).
A member who began participating in the Legislators Retirement Plan
prior to January 1, 2014, may purchase service credit under the
provisions of this section by transferring funds through a direct
trustee-to-trustee transfer as permitted under the applicable sections of
the Internal Revenue Code and any regulations or rulings issued
thereunder or through a direct rollover as contemplated by and permitted
under 26 U.S.C. sec. 401(a)(31) and any regulations or rulings issued
thereunder. Service credit may also be purchased by a rollover of funds
pursuant to and permitted under the rules specified in 26 U.S.C. sec.
402(c) and 26 U.S.C. sec. 408(d)(3). The Legislators Retirement Fund
shall accept the transfer or rollover to the extent permitted under the rules
specified in the applicable provisions of the Internal Revenue Code and
any regulations and rulings issued thereunder. The amount shall be
credited to the individual member's account and shall be considered
accumulated contributions of the member and shall not be picked up by
the employer under KRS 6.505(4).
Effective:July 1, 2013
History: Amended 2013 Ky. Acts ch. 120, sec. 14, effective July 1, 2013. -Amended 2005 Ky. Acts ch. 86, sec. 3, effective June 20, 2005. -- Amended
2003 Ky. Acts ch. 128, sec. 1, effective June 24, 2003. -- Amended 2002 Ky.
Acts ch. 90, sec. 4, effective July 15, 2002; and ch. 258, sec. 3, effective July
15, 2002. -- Amended 2001 Ky. Acts ch. 146, sec. 2, effective June 21, 2001. -Amended 1998 Ky. Acts ch. 389, sec. 6, effective July 15, 1998. -- Amended
1994 Ky. Acts ch. 266, sec. 3, effective July 15, 1994. -- Amended 1990 Ky.
Acts ch. 222, sec. 9, effective July 13, 1990; and ch. 480, sec. 3, effective July
13, 1990. -- Amended 1982 Ky. Acts ch. 458, sec. 16, effective April 15, 1982. -Created 1980 Ky. Acts ch. 407, sec. 14, effective July 1, 1980.
2012-2014 Budget Reference. See Legislative Branch Budget, 2012 Ky. Acts ch.
19, Pt. I, 1, (1) at 506.
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