2019 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 service credit at
(3)
(4)
(5)
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 lumpsum 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
(b)
(c)
Master Commissioner, or a District Court Trial 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
(d)
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 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.
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