2019 Kentucky Revised Statutes Chapter 61 - General provisions as to offices and officers -- social security for public employees -- employees retirement system 61.555 Service credit and purchases, creditable compensation, and other credits for military service. (Declared void -- See LRC Note Below).
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61.555 Service credit and purchases, creditable compensation, and other credits for
military service. (Declared void -- See LRC Note Below)
(1)
(a)
(b)
(c)
(d)
(2)
(a)
After August 1, 1998, any employee entering the Armed Forces of the United
States after he first participates in the system, who joins the Armed Forces
within three (3) months of the last day of paid employment, being on leave of
absence from service and not withdrawing his accumulated account balance,
shall be credited for retirement purposes with service credit and creditable
compensation as provided in 38 U.S.C. sec. 4318 for his period of active
military duty in the Armed Forces of the United States, not to exceed six (6)
years, if:
1.
The member's military service was terminated in a manner other than as
described in 38 U.S.C. sec. 4304; and
2.
The member returns to work with an employer participating in one (1) of
the retirement systems administered by the Kentucky Retirement
Systems within two (2) years after completion of the period of active
military duty, or upon the subsequent termination of any total disability
which existed at the expiration of the two (2) years after discharge.
A member eligible for the benefit prescribed by this subsection who
participates in the hybrid cash balance plan as provided by KRS 16.583 and
61.597 shall also have his or her member account credited with employee
contributions, employer pay credits, and interest credits, as provided by KRS
16.583 and 61.597, as though the member were employed during the
member's period of active military duty described by this subsection.
A member eligible for the benefit prescribed by this subsection who
participates in the 401(a) money purchase plan as provided by KRS 61.5956
shall also have his or her member account credited with employee and
employer contributions, as provided by KRS 61.5956, as though the member
were employed during the member's period of active military duty described
by this subsection.
The employer shall remit to the retirement systems the employer contributions
that would have been due under KRS 61.565 and 61.702 for periods of service
credited under this subsection.
After August 1, 1998, any employee who, prior to the date he first participated
in the system, terminated his employment with an agency participating in one
(1) of the systems administered by the Kentucky Retirement Systems and
within three (3) months entered the Armed Forces of the United States and
who returns to work with an employer participating in one (1) of the
retirement systems administered by the Kentucky Retirement Systems within
two (2) years after completion of the period of active military duty, or upon
the subsequent termination of any total disability which existed at the
expiration of the two (2) years after discharge, shall be credited for retirement
purposes with service credit and creditable compensation as provided in 38
U.S.C. sec. 4318 for his period of active military duty in the Armed Forces,
not to exceed six (6) years if his military service was terminated in a manner
(3)
(4)
(5)
(6)
other than as described in 38 U.S.C. sec. 4304.
(b) A member eligible for the benefit prescribed by this subsection who
participates in the hybrid cash balance plan as provided by KRS 16.583 and
61.597 shall also have his or her member account credited with employee
contributions, employer pay credits, and interest credits, as provided by KRS
16.583 and 61.597, as though the member were employed during the
member's period of active military duty described by this subsection.
(c) A member eligible for the benefit prescribed by this subsection who
participates in the 401(a) money purchase plan as provided by KRS 61.5956
shall also have his or her member account credited with employee and
employer contributions, as provided by KRS 61.5956, as though the member
were employed during the member's period of active military duty described
by this subsection.
(d) The employer shall remit to the retirement systems the employer contributions
that would have been due under KRS 61.565 and 61.702 for periods of service
credited under this subsection.
Any National Guard technician involuntarily serving on active military duty during
the period between January 26, 1968, and January 1, 1970, who completes his eight
(8) years' service while on military duty during this period, shall have that portion of
his active military duty, necessary to the completion of eight (8) years' current
service, credited to his account, as current service without having to meet the
reemployment criteria.
Any employee eligible for retirement as prescribed in KRS 61.559 or any employee
upon completion of five (5) years of service shall receive current service credit for a
maximum of four (4) years for his period of active military duty in the Armed
Forces of the United States, if his military service was terminated in a manner other
than as described in 38 U.S.C. sec. 4304 and he has not been credited with the
service under subsections (1) to (3) of this section if he pays thirty-five percent
(35%) of the cost of the service based on the formula adopted by the board. The
payment by the member shall not be picked up by the employer, as described in
KRS 61.560(4), and shall be deposited to his individual member's account. The
remaining sixty-five percent (65%) shall be paid by the state from funds
appropriated specifically for the purpose and these payments shall be deposited to
the respective retirement allowance accounts. If no funds are available in the special
appropriation account, the system shall not accept employee payments until funds
are available in the account.
Any employee participating in one (1) of the retirement systems administered by
Kentucky Retirement Systems eligible to purchase military service credit under
subsection (4) of this section shall receive current service credit for active military
duty as provided under subsection (4) of this section without payment of the current
employee contribution ratio if the member was taken prisoner by a hostile power at
any time during active military service.
Any employee participating in one (1) of the retirement systems administered by
Kentucky Retirement Systems age sixty-five (65) or older who has forty-eight (48)
(7)
(8)
months of service, at least twelve (12) of which are current service, or if younger
who has sixty (60) months of service, at least twelve (12) of which are current
service shall receive current service for his period of active military duty in the
Armed Forces of the United States, if his military service was terminated in a
manner other than as described in 38 U.S.C. sec. 4304 and he has not been credited
with the service under subsections (1) to (4) of this section, by paying the retirement
system a delayed contribution payment in accordance with the payment options and
restrictions established by KRS 61.552(14). Service purchases made pursuant to this
subsection shall be purchased by the entire amount of service available pursuant to
this subsection or by increments.
Any employee participating in one (1) of the retirement systems administered by the
Kentucky Retirement Systems age sixty-five (65) or older who has forty-eight (48)
months of service, at least twelve (12) of which are current service, or if younger
who has sixty (60) months of service, at least twelve (12) of which are current
service, shall receive one (1) month of current service for each six (6) months of
service in the National Guard or the military reserves of the United States, by
paying the retirement system a delayed contribution payment in accordance with the
payment options and restrictions established by KRS 61.552(14). The service shall
be treated as service earned prior to participation in the system and shall not be
included in the member's final compensation. Service purchases made pursuant to
this subsection shall be purchased by the entire amount of service available pursuant
to this subsection or by increments.
For members who begin participating in the systems administered by Kentucky
Retirement Systems on or after January 1, 2014, in the hybrid cash balance plan
prescribed by KRS 16.583 and 61.597, and for members who make an election to
participate in the 401(a) money purchase plan as provided by KRS 21.374, 61.5955,
or 61.5956, the provisions of subsections (4) to (7) of this section shall not apply.
Effective: July 14, 2018
History: Amended 2018 Ky. Acts ch. 107, sec. 26, effective July 14, 2018. -- Amended
2017 Ky. Acts ch. 32, sec. 11, effective June 29, 2017. -- Amended 2013 Ky. Acts
ch. 120, sec. 51, effective July 1, 2013. -- Amended 2004 Ky. Acts ch. 36, sec. 12,
effective July 13, 2004. -- Amended 2002 Ky. Acts ch. 52, sec. 6, effective July 15,
2002. -- Amended 2000 Ky. Acts ch. 385, sec. 15, effective July 14, 2000. -Amended 1998 Ky. Acts ch. 105, secs. 10 and 26, effective July 15, 1998. -Amended 1992 Ky. Acts ch. 240, sec. 22, effective July 14, 1992. -- Amended 1990
Ky. Acts ch. 132, sec. 1, effective July 13, 1990. -- Amended 1986 Ky. Acts ch. 179,
sec. 1, effective July 15, 1986; and ch. 362, sec. 1, effective July 15, 1986. -Amended 1984 Ky. Acts ch. 121, sec. 1, effective July 13, 1984. -- Amended 1982
Ky. Acts ch. 166, sec. 19, effective July 15, 1982. -- Amended 1980 Ky. Acts ch.
186, sec. 7, effective July 15, 1980. --Amended 1978 Ky. Acts ch. 311, sec. 13,
effective June 17, 1978. -- Amended 1976 Ky. Acts ch. 321, sec. 17. -- Amended
1974 Ky. Acts ch. 48, sec. 1; and ch. 302, sec. 1. -- Amended 1972 Ky. Acts ch. 116,
sec. 32; ch. 116, sec. 32; and ch. 133, sec. 1. -- Amended 1966 Ky. Acts ch. 32, sec.
6. -- Created 1956 Ky. Acts ch. 110, sec. 10.
Legislative Research Commission Note (12/13/2018). On December 13, 2018, the
Kentucky Supreme Court ruled that the passage of 2018 SB 151 (2018 Ky. Acts ch.
107), did not comply with the three-readings rule of Kentucky Constitution Section
46 and that the legislation is, therefore, constitutionally invalid and declared void.
That ruling applies to changes made to this statute in that Act.
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