2019 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 -- Retired member serving as volunteer, independent contractor, or leased employee -- Effect of reelection for same office -- Resignation not required of certain mayors and city legislative body members to draw benefits -- Certification of absence of prearranged agreement or qualification as independent contractor or leased employee -- Forms.
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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 -- Retired member serving as volunteer, independent contractor, or
leased employee -- Effect of reelection for same office -- Resignation not
required of certain mayors and city legislative body members to draw benefits
-- Certification of absence of prearranged agreement or qualification as
independent contractor or leased employee -- Forms.
(1)
(2)
(3)
(4)
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.
(5)
(6)
(7)
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.
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) If a retired member accepts employment or begins serving as a volunteer with an
employer participating in the systems administered by Kentucky Retirement
Systems within twelve (12) months of his or her retirement date, the retired member
shall notify the retirement system and the participating employer shall submit the
information required or requested by the systems to confirm the individual's
employment or volunteer status. The retired member shall not be required to notify
the retirement systems regarding any employment or volunteer service with a
participating agency that is accepted after twelve (12) months following his or her
retirement date.
(9) If the retired member is under a contract to provide services as an independent
contractor or leased employee to an employer participating in the systems
administered by Kentucky Retirement Systems within twelve (12) months of his or
her retirement date, 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 or leased employee for purposes of retirement benefits. The
retired member and the participating employer shall submit the information required
or requested by the systems to confirm the individual's status as an independent
contractor or leased employee. The retired member shall not be required to notify
the retirement systems regarding any services entered into as an independent
contractor or leased employee with a participating agency that the employee enters
into after twelve (12) months following his or her retirement date.
(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) 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;
(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
(c)
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.
If a member is reemployed by a participating agency within twelve (12)
months of the member's retirement date, the 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 an elected official is reelected to a new term of
office in the same position and has retired from the elected office within
twelve (12) months prior to taking the new term of office, he or she shall
be deemed by the system as having a prearranged agreement under the
provisions of this subparagraph and shall have his or her retirement
voided. If the participating agency fails 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.
Employment that is accepted by the retired member after twelve (12)
months following the member's retirement date shall not constitute a
prearranged agreement under this paragraph;
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, 95.022, and 164.952 and
except for any retiree employed as a school resource officer as defined
by KRS 158.441, 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
4.
Except as provided by KRS 70.291 to 70.293, 95.022, and 164.952 and
except for any retiree employed as a school resource officer as defined
by KRS 158.441, 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 1, 2015, local school boards shall not be
required to pay the reimbursement required by this subparagraph for
retirees employed by the board for eighty (80) days or less during the
fiscal year;
If a member is receiving a retirement allowance from the State Police
Retirement System or from hazardous duty retirement coverage with the
(d)
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;
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.
If a member is reemployed by a participating agency within twelve (12)
months of the member's retirement date, the 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 an elected official is reelected to a new term of
office in the same position and has retired from the elected office within
twelve (12) months prior to taking the new term of office, he or she shall
be deemed by the system as having a prearranged agreement under the
provisions of this subparagraph and shall have his or her retirement
voided. If the participating agency fails to complete the certification, the
member's retirement shall be voided and the provisions of paragraph (c)
of this subsection shall apply to the member and the employer.
Employment that is accepted by the retired member after twelve (12)
(e)
months following the member's retirement date shall not constitute a
prearranged agreement under this paragraph;
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, 95.022, and 164.952 and
except for any retiree employed as a school resource officer as defined
by KRS 158.441, 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;
4.
Except as provided by KRS 70.291 to 70.293, 95.022, and 164.952 and
except for any retiree employed as a school resource officer as defined
by KRS 158.441, 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;
Notwithstanding paragraphs (a) to (d) of this subsection, a retired member
who qualifies as a volunteer for an employer participating in one (1) of the
systems administered by Kentucky Retirement Systems and who is receiving
reimbursement of actual expenses, a nominal fee for his or her volunteer
services, or both, shall not be considered an employee of the participating
employer and shall not be subject to paragraphs (a) to (d) of this subsection if:
1.
Prior to the retired member's most recent retirement date, he or she did
not receive creditable compensation from the participating employer in
which the retired member is performing volunteer services;
2.
Any reimbursement or nominal fee received prior to the retired
member's most recent retirement date has not been credited as creditable
compensation to the member's account or utilized in the calculation of
the retired member's benefits;
3.
The retired member has not purchased or received service credit under
any of the provisions of KRS 61.510 to 61.705 or 78.510 to 78.852 for
service with the participating employer for which the retired member is
performing volunteer services; and
4.
Other than the status of volunteer, the retired member does not become
an employee, leased employee, or independent contractor of the
employer for which he or she is performing volunteer services for a
period of at least twenty-four (24) months following the retired
member's most recent retirement date.
If a retired member, who provided volunteer services with a participating
employer under this paragraph violates any provision of this paragraph, then
(f)
(g)
he or she shall be deemed an employee of the participating employer as of the
date he or she began providing volunteer services and both the retired member
and the participating employer shall be subject to paragraphs (a) to (d) of this
subsection for the period of volunteer service;
Notwithstanding any provision of this section, any mayor or member of a city
legislative body who has not participated in the County Employees Retirement
System prior to retirement, but who is otherwise eligible to retire from the
Kentucky Employees Retirement System or the State Police Retirement
System, shall not be:
1.
Required to resign from his or her position as mayor or as a member of
the city legislative body in order to begin drawing benefits from the
Kentucky Employees Retirement System or the State Police Retirement
System; or
2.
Subject to any provision of this section as it relates solely to his or her
service as a mayor or member of the city legislative body;
If a member is receiving a retirement allowance from any of the retirement
systems administered by the Kentucky Retirement Systems and enters into a
contract or becomes a leased employee of an employer under contract with an
employer participating in one (1) of the systems administered by the Kentucky
Retirement Systems:
1.
At any time following retirement, if the system determines the
employment arrangement does qualify as an independent contractor or
leased employee, the member may continue to receive his or her
retirement allowance during the period of the contract;
2.
Within three (3) months following the member's initial retirement date,
if the system determines the employment arrangement does not qualify
as an independent contractor or leased employee, the member's
retirement shall be voided in accordance with paragraph (a) of this
subsection;
3.
After three (3) months but within twelve (12) months following the
member's initial retirement, if the system determines the employment
arrangement does not qualify as an independent contractor or leased
employee and that a prearranged agreement existed between the member
and the agency for the member to return to work with the agency, the
member's retirement shall be voided in accordance with paragraph (a) of
this subsection; and
4.
After a twelve (12) month period following the member's initial
retirement, the member may continue to receive his or her retirement
allowance during the period of the contract and the member shall not be
required to notify the system or submit any documentation for purposes
of this section to the system.
The initiation of a contract or the initial date of the leased employment of a
retired member by a participating agency that occurs after twelve (12) months
or more following the retired member's retirement date shall not constitute a
prearranged agreement under this subsection; and
(h) The Kentucky Retirement Systems shall issue a final determination regarding
a certification of the absence of a prearranged agreement or the retired
member's qualification as an independent contractor or leased employee as
required under this section no later than thirty (30) days after the retired
member and participating employer provide all required forms and additional
information required by the Kentucky Retirement Systems.
(18) The Kentucky Retirement Systems shall promulgate administrative regulations to
implement the requirements of this section, including incorporating by reference
board-prescribed forms that a retired member and participating agency shall provide
the systems under subsections (8), (9), and (17) of this section.
Effective: June 27, 2019
History: Amended 2019 Ky. Acts ch. 127, sec. 2, effective June 27, 2019; ch. 161, sec.
2, effective June 27, 2019; and ch. 189, sec. 1, effective June 27, 2019. -- Amended
2018 Ky. Acts ch. 107, sec. 28, effective July 14, 2018; ch. 171, sec. 20, effective
April 14, 2018; and ch. 207, sec. 20, effective April 27, 2018. -- Amended 2016 Ky.
Acts ch. 25, sec. 3, effective July 15, 2016; ch. 68, sec. 1, effective July 15, 2016;
and ch. 78, sec. 2, effective July 15, 2016. -- Amended 2015 Ky. Acts ch. 25, sec. 1,
effective June 24, 2015; and ch. 103, sec. 1, effective June 24, 2015. -- 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 (6/27/2019). This statute was amended by 2019
Ky. Acts chs. 127, 161, and 189. Where these Acts are not in conflict, they have been
codified together. Where a conflict exists, Acts ch. 127, which was last enacted by
the General Assembly, prevails under KRS 446.250.
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.
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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