2014 Kentucky Revised Statutes CHAPTER 61 - GENERAL PROVISIONS AS TO OFFICES AND OFFICERS -- SOCIAL SECURITY FOR PUBLIC EMPLOYEES -- EMPLOYEES RETIREMENT SYSTEM 61.637 Suspension of retirement payments on reemployment -- Reinstatement -- Recomputation of allowance -- Waiver of provisions in certain instances -- Reemployment in a different position -- Effect of reemployment of retired member participating on or after September 1, 2008, except as provided by KRS 70.291 to 70.293.
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61.637
Suspension of retirement payments on reemployment
Reinstatement -- Recomputation of allowance -- Waiver of provisions
certain instances -- Reemployment in a different position -- Effect
reemployment of retired member participating on or after September
2008, except as provided by KRS 70.291 to 70.293.
(1)
(2)
(3)
(4)
-in
of
1,
A retired member who is receiving monthly retirement payments under any of
the provisions of KRS 61.510 to 61.705 and 78.510 to 78.852 and who is
reemployed as an employee by a participating agency prior to August 1, 1998,
shall have his retirement payments suspended for the duration of
reemployment. Monthly payments shall not be suspended for a retired member
who is reemployed if he anticipates that he will receive less than the maximum
permissible earnings as provided by the Federal Social Security Act in
compensation as a result of reemployment during the calendar year. The
payments shall be suspended at the beginning of the month in which the
reemployment occurs.
Employer and employee contributions shall be made as provided in KRS
61.510 to 61.705 and 78.510 to 78.852 on the compensation paid during
reemployment, except where monthly payments were not suspended as
provided in subsection (1) of this section or would not increase the retired
member's last monthly retirement allowance by at least one dollar ($1), and the
member shall be credited with additional service credit.
In the month following the termination of reemployment, retirement allowance
payments shall be reinstated under the plan under which the member was
receiving payments prior to reemployment.
(a) Notwithstanding the provisions of this section, the payments suspended
in accordance with subsection (1) of this section shall be paid
retroactively to the retired member, or his estate, if he does not receive
more than the maximum permissible earnings as provided by the Federal
Social Security Act in compensation from participating agencies during
any calendar year of reemployment.
(b) If the retired member is paid suspended payments retroactively in
accordance with this section, employee contributions deducted during his
period of reemployment, if any, shall be refunded to the retired employee,
and no service credit shall be earned for the period of reemployment.
(c) If the retired member is not eligible to be paid suspended payments for
his period of reemployment as an employee, his retirement allowance
shall be recomputed under the plan under which the member was
receiving payments prior to reemployment as follows:
1.
The retired member's final compensation shall be recomputed using
creditable compensation for his period of reemployment; however,
the final compensation resulting from the recalculation shall not be
less than that of the member when his retirement allowance was last
determined;
2.
If the retired member initially retired on or subsequent to his normal
retirement date, his retirement allowance shall be recomputed by
using the formula in KRS 61.595(1);
3.
(5)
(6)
(7)
If the retired member initially retired prior to his normal retirement
date, his retirement allowance shall be recomputed using the
formula in KRS 61.595(2), except that the member's age used in
computing benefits shall be his age at the time of his initial
retirement increased by the number of months of service credit
earned for service performed during reemployment;
4.
The retirement allowance payments resulting from the
recomputation under this subsection shall be payable in the month
following the termination of reemployment in lieu of payments under
subparagraph 3. The member shall not receive less in benefits as a
result of the recomputation than he was receiving prior to
reemployment or would receive as determined under KRS 61.691;
and
5.
Any retired member who was reemployed prior to March 26, 1974,
shall begin making contributions to the system in accordance with
the provisions of this section on the first day of the month following
March 26, 1974.
A retired member, or his estate, shall pay to the retirement fund the total
amount of payments which are not suspended in accordance with subsection
(1) of this section if the member received more than the maximum permissible
earnings as provided by the Federal Social Security Act in compensation from
participating agencies during any calendar year of reemployment, except the
retired member or his estate may repay the lesser of the total amount of
payments which were not suspended or fifty cents ($0.50) of each dollar
earned over the maximum permissible earnings during reemployment if under
age sixty-five (65), or one dollar ($1) for every three dollars ($3) earned if over
age sixty-five (65).
(a) "Reemployment" or "reinstatement" as used in this section shall not
include a retired member who has been ordered reinstated by the
Personnel Board under authority of KRS 18A.095.
(b) A retired member who has been ordered reinstated by the Personnel
Board under authority of KRS 18A.095 or by court order or by order of the
Human Rights Commission and accepts employment by an agency
participating in the Kentucky Employees Retirement System or County
Employees Retirement System shall void his retirement by reimbursing
the system in the full amount of his retirement allowance payments
received.
(a) Effective August 1, 1998, the provisions of subsections (1) to (4) of this
section shall no longer apply to a retired member who is reemployed in a
position covered by the same retirement system from which the member
retired. Reemployed retired members shall be treated as new members
upon reemployment. Any retired member whose reemployment date
preceded August 1, 1998, who does not elect, within sixty (60) days of
notification by the retirement systems, to remain under the provisions of
subsections (1) to (4) of this section shall be deemed to have elected to
participate under this subsection.
(b) A retired member whose disability retirement was discontinued pursuant
to KRS 61.615 and who is reemployed in one (1) of the systems
administered by the Kentucky Retirement Systems prior to his or her
normal retirement date shall have his or her accounts combined upon
termination for determining eligibility for benefits. If the member is eligible
for retirement, the member's service and creditable compensation earned
as a result of his or her reemployment shall be used in the calculation of
benefits, except that the member's final compensation shall not be less
than the final compensation last used in determining his or her retirement
allowance. The member shall not change beneficiary or payment option
designations. This provision shall apply to members reemployed on or
after August 1, 1998.
(8) A retired member or his employer shall notify the retirement system if he has
accepted employment with an agency that participates in the retirement system
from which the member retired.
(9) If the retired member is under a contract, the member shall submit a copy of
that contract to the retirement system, and the retirement system shall
determine if the member is an independent contractor for purposes of
retirement benefits.
(10) If a member is receiving a retirement allowance, or has filed the forms required
for a retirement allowance, and is employed within one (1) month of the
member's initial retirement date in a position that is required to participate in
the same retirement system from which the member retired, the member's
retirement shall be voided and the member shall repay to the retirement system
all benefits received. The member shall contribute to the member account
established for him prior to his voided retirement. The retirement allowance for
which the member shall be eligible upon retirement shall be determined by total
service and creditable compensation.
(11) (a) If a member of the Kentucky Employees Retirement System retires from
a department which participates in more than one (1) retirement system
and is reemployed within one (1) month of his initial retirement date by the
same department in a position participating in another retirement system,
the retired member's retirement allowance shall be suspended for the first
month of his retirement and the member shall repay to the retirement
system all benefits received for the month.
(b) A retired member of the County Employees Retirement System who after
initial retirement is hired by the county from which the member retired
shall be considered to have been hired by the same employer.
(12) (a) If a hazardous member who retired prior to age fifty-five (55), or a
nonhazardous member who retired prior to age sixty-five (65), is
reemployed within six (6) months of the member's termination by the
same employer, the member shall obtain from his previous and current
employers a copy of the job description established by the employers for
the position and a statement of the duties performed by the member for
the position from which he retired and for the position in which he has
been reemployed.
(b) The job descriptions and statements of duties shall be filed with the
retirement office.
(13) If the retirement system determines that the retired member has been
employed in a position with the same principal duties as the position from
which the member retired:
(a) The member's retirement allowance shall be suspended during the period
that begins on the month in which the member is reemployed and ends
six (6) months after the member's termination;
(b) The retired member shall repay to the retirement system all benefits paid
from systems administered by Kentucky Retirement Systems under
reciprocity, including medical insurance benefits, that the member
received after reemployment began;
(c) Upon termination, or subsequent to expiration of the six (6) month period
from the date of termination, the retired member's retirement allowance
based on his initial retirement account shall no longer be suspended and
the member shall receive the amount to which he is entitled, including an
increase as provided by KRS 61.691;
(d) Except as provided in subsection (7) of this section, if the position in
which a retired member is employed after initial retirement is a regular
full-time position, the retired member shall contribute to a second member
account established for him in the retirement system. Service credit
gained after the member's date of reemployment shall be credited to the
second member account; and
(e) Upon termination, the retired member shall be entitled to benefits payable
from his second retirement account.
(14) (a) If the retirement system determines that the retired member has not been
reemployed in a position with the same principal duties as the position
from which he retired, the retired member shall continue to receive his
retirement allowance.
(b) If the position is a regular full-time position, the member shall contribute
to a second member account in the retirement system.
(15) (a) If a retired member is reemployed at least one (1) month after initial
retirement in a different position, or at least six (6) months after initial
retirement in the same position, and prior to normal retirement age, the
retired member shall contribute to a second member account in the
retirement system and continue to receive a retirement allowance from
the first member account.
(b) Service credit gained after reemployment shall be credited to the second
member account. Upon termination, the retired member shall be entitled
to benefits payable from the second member account.
(16) A retired member who is reemployed and contributing to a second member
account shall not be eligible to purchase service credit under any of the
provisions of KRS 16.505 to 16.652, 61.510 to 61.705, or 78.510 to 78.852
which he was eligible to purchase prior to his initial retirement.
(17) Notwithstanding any provision of subsections (1) to (7)(a) and (10) to (15) of
this section, the following shall apply to retired members who are reemployed
by an agency participating in one (1) of the systems administered by Kentucky
Retirement Systems on or after September 1, 2008:
(a)
(b)
Except as provided by paragraphs (c) and (d) of this subsection, if a
member is receiving a retirement allowance from one (1) of the systems
administered by Kentucky Retirement Systems, or has filed the forms
required to receive a retirement allowance from one (1) of the systems
administered by Kentucky Retirement Systems, and is employed in a
regular full-time position required to participate in one (1) of the systems
administered by Kentucky Retirement Systems or is employed in a
position that is not considered regular full-time with an agency
participating in one (1) of the systems administered by Kentucky
Retirement Systems within three (3) months following the member's initial
retirement date, the member's retirement shall be voided, and the
member shall repay to the retirement system all benefits received,
including any health insurance benefits. If the member is returning to work
in a regular full-time position required to participate in one (1) of the
systems administered by Kentucky Retirement Systems:
1.
The member shall contribute to a member account established for
him or her in one (1) of the systems administered by Kentucky
Retirement Systems, and employer contributions shall be paid on
behalf of the member by the participating employer; and
2.
Upon subsequent retirement, the member shall be eligible for a
retirement allowance based upon total service and creditable
compensation, including any additional service or creditable
compensation earned after his or her initial retirement was voided;
Except as provided by paragraphs (c) and (d) of this subsection, if a
member is receiving a retirement allowance from one (1) of the systems
administered by Kentucky Retirement Systems and is employed in a
regular full-time position required to participate in one (1) of the systems
administered by Kentucky Retirement Systems after a three (3) month
period following the member's initial retirement date, the member may
continue to receive his or her retirement allowance during the period of
reemployment subject to the following provisions:
1.
Both the employee and participating agency shall certify in writing
on a form prescribed by the board that no prearranged agreement
existed between the employee and agency prior to the employee's
retirement for the employee to return to work with the participating
agency. If the participating agency or employer fail to complete the
certification, the member's retirement shall be voided and the
provisions of paragraph (a) of this subsection shall apply to the
member and the employer;
2.
Notwithstanding any other provision of KRS Chapter 16, 61, or 78 to
the contrary, the member shall not contribute to the systems and
shall not earn any additional benefits for any work performed during
the period of reemployment;
3.
Except as provided by KRS 70.291 to 70.293, the employer shall
pay employer contributions as specified by KRS 61.565 and 61.702
on all creditable compensation earned by the employee during the
period of reemployment. The additional contributions paid shall be
(c)
(d)
used to reduce the unfunded actuarial liability of the systems; and
4.
Except as provided by KRS 70.291 to 70.293, the employer shall be
required to reimburse the systems for the cost of the health
insurance premium paid by the systems to provide coverage for the
retiree, not to exceed the cost of the single premium;
If a member is receiving a retirement allowance from the State Police
Retirement System or from hazardous duty retirement coverage with the
Kentucky Employees Retirement System or the County Employees
Retirement System, or has filed the forms required to receive a retirement
allowance from the State Police Retirement System or from hazardous
duty retirement coverage with the Kentucky Employees Retirement
System or the County Employees Retirement System, and is employed in
a regular full-time position required to participate in the State Police
Retirement System or in a hazardous duty position with the Kentucky
Employees Retirement System or the County Employees Retirement
System within one (1) month following the member's initial retirement
date, the member's retirement shall be voided, and the member shall
repay to the retirement system all benefits received, including any health
insurance benefits. If the member is returning to work in a regular full-time
position required to participate in one (1) of the systems administered by
Kentucky Retirement Systems:
1.
The member shall contribute to a member account established for
him or her in one (1) of the systems administered by Kentucky
Retirement Systems, and employer contributions shall be paid on
behalf of the member by the participating employer; and
2.
Upon subsequent retirement, the member shall be eligible for a
retirement allowance based upon total service and creditable
compensation, including any additional service or creditable
compensation earned after his or her initial retirement was voided;
and
If a member is receiving a retirement allowance from the State Police
Retirement System or from hazardous duty retirement coverage with the
Kentucky Employees Retirement System or the County Employees
Retirement System and is employed in a regular full-time position
required to participate in the State Police Retirement System or in a
hazardous duty position with the Kentucky Employees Retirement System
or the County Employees Retirement System after a one (1) month period
following the member's initial retirement date, the member may continue
to receive his or her retirement allowance during the period of
reemployment subject to the following provisions:
1.
Both the employee and participating agency shall certify in writing
on a form prescribed by the board that no prearranged agreement
existed between the employee and agency prior to the employee's
retirement for the employee to return to work with the participating
agency. If the participating agency or employer fail to complete the
certification, the member's retirement shall be voided and the
provisions of paragraph (c) of this subsection shall apply to the
2.
3.
4.
member and the employer;
Notwithstanding any other provision of KRS Chapter 16, 61, or 78 to
the contrary, the member shall not contribute to the systems and
shall not earn any additional benefits for any work performed during
the period of reemployment;
Except as provided by KRS 70.291 to 70.293, the employer shall
pay employer contributions as specified by KRS 61.565 and 61.702
on all creditable compensation earned by the employee during the
period of reemployment. The additional contributions paid shall be
used to reduce the unfunded actuarial liability of the systems; and
Except as provided by KRS 70.291 to 70.293, the employer shall be
required to reimburse the systems for the cost of the health
insurance premium paid by the systems to provide coverage for the
retiree, not to exceed the cost of the single premium.
Effective:July 15, 2014
History: Amended 2014 Ky. Acts ch. 96, sec. 4, effective July 15, 2014. -Amended 2011 Ky. Acts ch. 52, sec. 3, effective June 8, 2011. -- Amended 2008
(1st Extra. Sess.) Ky. Acts ch. 1, sec. 20, effective June 27, 2008. -- Amended
2002 Ky. Acts ch. 52, sec. 10, effective July 15, 2002. -- Amended 2001 Ky.
Acts ch. 41, sec. 1, effective June 21, 2001. -- Amended 2000 Ky. Acts ch. 210,
sec 5, effective July 14, 2000; and ch. 385, sec. 22, effective July 14, 2000. -Amended 1998 Ky. Acts ch. 75, sec. 1, effective July 15, 1998; and ch. 105,
sec. 28, effective July 15, 1998. -- Amended 1996 Ky. Acts ch. 167, sec. 15,
effective July 15, 1996. -- Amended 1994 Ky. Acts ch. 485, sec. 19, effective
July 15, 1994. Amended 1992 Ky. Acts ch. 240, sec. 38, effective July 14,
1992. -- Amended 1986 Ky. Acts ch. 90, sec. 18, effective July 15, 1986. -Amended 1982 Ky. Acts ch. 448, sec. 64, effective July 15, 1982. -- Amended
1980 Ky. Acts ch. 186, sec. 12, effective July 15, 1980. -- Amended 1978 Ky.
Acts ch. 311, sec. 17, effective June 17, 1978; and ch. 384, sec. 17, effective
June 17, 1978. -- Amended 1976 Ky. Acts ch. 321, sec. 27. -- Amended 1974
Ky. Acts ch. 128, sec. 24. -- Amended 1972 Ky. Acts ch. 116, sec. 46. -Amended 1970 Ky. Acts ch. 101, sec. 8. -- Created 1966 Ky. Acts ch. 35, sec.
17.
Legislative Research Commission Note (6/27/2008). A manifest clerical or
typographical error in 2008 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 20 (this
statute), has been corrected in codification by the Reviser of Statutes under the
authority of KRS 7.136(1)(h).
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