2014 Kentucky Revised Statutes CHAPTER 61 - GENERAL PROVISIONS AS TO OFFICES AND OFFICERS -- SOCIAL SECURITY FOR PUBLIC EMPLOYEES -- EMPLOYEES RETIREMENT SYSTEM 61.598 Employer to pay actuarial costs resulting from certain increases in creditable compensation -- Inquiries from employers -- Hearing and appeal.
Download as PDF
61.598 Employer to pay actuarial costs resulting from certain increases in
creditable compensation -- Inquiries from employers -- Hearing and
appeal.
(1)
(2)
(3)
(4)
(5)
(6)
For purposes of this section, "bona fide promotion or career advancement":
(a) Means a professional advancement in substantially the same line of work
held by the employee in the four (4) years immediately prior to the final
five (5) fiscal years preceding retirement or a change in employment
position based on the training, skills, education, or expertise of the
employee that imposes a significant change in job duties and
responsibilities to clearly justify the increased compensation to the
member; and
(b) Does not include any circumstance where an elected official participating
in the Kentucky Employees Retirement System or the County Employees
Retirement System takes a position of employment with a different
employer participating in any of the state-administered retirement
systems.
For employees retiring on or after January 1, 2014, the last participating
employer shall be required to pay for any additional actuarial costs resulting
from annual increases in an employee's creditable compensation greater than
ten percent (10%) over the employee's last five (5) fiscal years of employment
that are not the direct result of a bona fide promotion or career advancement.
The cost shall be determined by the retirement systems and the system may
promulgate administrative regulations in accordance with KRS Chapter 13A to
administer this section.
(a) The Kentucky Retirement Systems shall determine whether increases in
creditable compensation during the last five (5) fiscal years of
employment prior to retirement constitute a bona fide promotion or career
advancement.
(b) Lump-sum payments for compensatory time paid to an employee upon
termination of employment shall be exempt from the provisions of this
section.
Kentucky Retirement Systems shall be required to answer inquiries from
participating employers regarding this section. Upon request of the employer
prior to the employee's change of position or hiring, the systems shall make a
determination that is binding to the systems as to whether or not a change of
position or hiring constitutes a bona fide promotion or career advancement.
Any employer who disagrees with a determination made by the system in
accordance with this section may request a hearing and appeal the decision in
accordance with KRS 61.645(16). The systems shall not charge interest, or
consider the costs due under this section as delinquent contributions, during
the pendency of the hearing process and appeal.
For any additional actuarial costs charged to the employer under this section,
the systems shall allow the employer to pay the costs over a period, not to
exceed one (1) year, without interest.
Effective:July 1, 2013
History: Created 2013 Ky. Acts ch. 120, sec. 10, effective July 1, 2013.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.