RELATES TO:
KRS
161.220(4),
161.545,
161.5465
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
161.545 authorizes members of the Teachers'
Retirement System to make contributions based on part-time service in
accordance with trustee administrative regulations.
KRS
161.310(1) requires the
Teachers' Retirement System Board of Trustees to promulgate administrative
regulations for the administration of the funds of the retirement system and
for the transaction of business. This administrative regulation establishes the
service towards which contributions may be made and the procedures for
crediting those contributions.
Section
1. Active, contributing members who opt to purchase service credit
pursuant to this administrative regulation and who are employed on a part-time
basis in a position listed in
KRS
161.220(4)(b) and (n) in one
(1) of the universities or community colleges shall make retirement
contributions and receive service credit in compliance with the following
conditions:
(1) An active, contributing member
who teaches or is paid the equivalent of at least three-tenths (3/10) of
regular full-time service may make contributions on the member's salary and
receive a fractional year of service credit.
(2) Contributions shall be based upon the
equivalent annual contract salary if a full year of service is to be
granted.
(3) Members may make
personal contributions for that service in accordance with this administrative
regulation upon certification of service and salary by the applicable
authority.
(4) The contributions
shall be made directly to the retirement office on or before December 31
immediately following the fiscal year in which the part-time service was
rendered.
(5) Interest charges of
eight (8) percent per annum shall be added to payments made after June 30 of
the year that the service occurred.
Section 2. An active, contributing member who
is employed and teaches or is paid at least seven-tenths (7/10) of the regular
contract year shall have the option of purchasing credit for the balance of the
contract year in accordance with the conditions of this section.
(1) The member shall be employed in a regular
full-time position pursuant to a contract that requires a full day of service
for every workday of a full contract year.
(2) The member would have received one (1)
year of service credit for completing the contract had it been
completed.
(3) The member provided
service for less than a full year as required by the contract.
(4) The member was employed pursuant to the
contract at the beginning of the fiscal or school contract year.
(5) A member employed after the beginning of
a regular contract year shall not be eligible to obtain service credit for the
time prior to the member's employment.
(6) The contributions shall be made directly
to the retirement office on or before December 31 immediately following the
fiscal year in which the part-time service was rendered.
(7) Interest charges of eight (8) percent per
annum shall be added to payments made after June 30 of the year that the
service occurred.
(8) The total
amount of service credit that may be purchased pursuant to this section shall
not exceed five (5) years. Service purchased pursuant to this section shall be
included in calculating the maximum of five (5) years of nonqualified service
credit that may be purchased in accordance with
KRS
161.5465.
Section 3. Active, contributing members who
purchase retirement credit for full-time or part-time employment in one (1) of
the universities or community colleges during years in which they have
full-time employment with another employer participating in Teachers'
Retirement System, and for which the purchase would result in more than one (1)
year of service credit, shall receive salary credit only. Notwithstanding
Section 2(8) of this administrative regulation, members making this salary
credit purchase, shall purchase every year of their part-time service with the
university or community college.
