2019 Kentucky Revised Statutes Chapter 61 - General provisions as to offices and officers -- social security for public employees -- employees retirement system 61.545 Service credit determination -- Purchase of service credit for fractional year's service for members who began participating before January 1, 2014 -- Choice of system -- Division of service credit.
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61.545 Service credit determination -- Purchase of service credit for fractional
year's service for members who began participating before January 1,
2014 -- Choice of system -- Division of service credit.
(1)
(2)
(3)
The board shall determine by appropriate administrative regulations how much
service in any year is the equivalent of a year of service credit and how much
service in any calendar month is the equivalent of a month of service credit. It
shall not allow credit for more than one (1) year of service for all service
rendered in any period of twelve (12) consecutive months except as provided
in KRS 61.546 and in subsection (2) of this section.
(a) Employees participating in one (1) of the state-administered retirement
systems who are or have been employed by a school board participating
in the County Employees Retirement System, a state-operated school
under KRS Chapter 167, a participating community action agency, or a
Kentucky institution of higher education which participates in the Kentucky
Employees Retirement System, and who receive service credit for less
than twelve (12) months each year, may purchase the additional months
of service credit needed to total one (1) year of service credit except the
amount purchased shall not exceed three (3) months. The employee may
purchase the service credit by paying the retirement system a delayed
contribution payment in accordance with the payment options and
restrictions established by KRS 61.552(14). Employees who have service
credit prior to July 1, 1992, or their employers, the state-operated school
under KRS Chapter 167, the Kentucky institution of higher education, or
the school board may purchase service credit on behalf of the employee
for previous years by paying the retirement system the delayed
contribution payment in accordance with the payment options and
restrictions established by KRS 61.552(14).
(b) The cost of service under this subsection may be paid by both the
employer and employee. The employer shall pay fifty percent (50%) of the
cost and the employee shall pay fifty percent (50%) of the cost. The
payment by the employer shall not be deposited to the member's account.
Service credit shall not be credited to the member's account until both the
employer's and employee's payment are received by the retirement
system.
(c) If the employee has purchased service credit under this subsection based
on months reported by the employer for the fiscal year, and an audit of
the employee's account reduces the number of months of service credit
for which the employee is eligible to no fewer than nine (9) months, the
employee shall retain credit for the months purchased unless the
employee is ineligible for any service in the fiscal year. The employee
shall be eligible to purchase the additional months under this subsection
to total one (1) year.
(d) This subsection shall not apply to members who begin participating in the
systems administered by Kentucky Retirement Systems on or after
January 1, 2014.
(a) If an employee participates in more than one (1) of the retirement
systems administered by the Kentucky Retirement Systems, the
(b)
employee's service credit shall be divided between each system
determined by dividing the employee's creditable compensation in each
system by the employee's total creditable compensation in all systems.
If an employee earns creditable compensation in both a hazardous
position, as defined by KRS 61.592, and a nonhazardous position, the
employee's service credit shall be divided between the employee's
hazardous and nonhazardous positions determined by dividing the
employee's creditable compensation in the hazardous and nonhazardous
positions by the employee's combined hazardous and nonhazardous
creditable compensation.
Effective:June 29, 2017
History: Amended 2017 Ky. Acts ch. 32, sec. 8, effective June 29, 2017. -Amended 2013 Ky. Acts ch. 120, sec. 48, effective July 1, 2013. -- Amended
2004 Ky. Acts ch. 36, sec. 10, effective July 13, 2004. -- Amended 2002 Ky.
Acts ch. 52, sec. 4, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 385,
sec. 13, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 105, sec. 8,
effective July 15, 1998. -- Amended 1996 Ky. Acts ch. 167, sec. 9, effective July
15, 1996. -- Amended 1994 Ky. Acts ch. 406, sec. 1, effective July 15, 1994;
and ch. 485, sec. 11, effective July 15, 1994. Amended 1992 Ky. Acts ch. 240,
sec. 19, effective July 14, 1992. -- Amended 1990 Ky. Acts ch. 222, sec. 1,
effective July 13, 1990; and ch. 489, sec. 4, effective July 13, 1990. -- Amended
1988 Ky. Acts ch. 349, sec. 13, effective July 15, 1988. -- Amended 1986 Ky.
Acts ch. 53, sec. 1, effective July 15, 1986. -- Amended 1980 Ky. Acts ch. 165,
sec. 2, effective July 15, 1980. -- Amended 1966 Ky. Acts ch. 35, sec. 3. -Created 1956 Ky. Acts ch. 110, sec. 8.
Legislative Research Commission Note (7/15/94). This section was amended by
1994 Ky. Acts chs. 406 and 485. Where these Acts are not in conflict, they have
been codified together. Where a conflict exists, Acts ch. 485, which was last
enacted by the General Assembly, prevails under KRS 446.250.
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