102 KAR 1:038 - Fractional service year for members initially employed on a full-time basis
RELATES TO: KRS 161.545, 161.5465
NECESSITY, FUNCTION, AND CONFORMITY: KRS 161.545 authorizes members of the Teachers' Retirement System to make contributions for service other than regular full-time teaching 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 guidelines for accepting contributions and granting service credit for members employed for less than a full school year.
Section
1.
(1) Except as provided in
Sections 2, 3, and 4 of this administrative regulation, a member shall receive
a proportional fraction of a year of service credit computed to the nearest
hundredth if the member provides service for less than the regular contract
year.
(2) A member employed in a
position listed in
KRS
161.220(4)(b) or (n) in one
(1) of the universities, colleges, or community colleges shall be employed in a
regular full-time position in order to receive a proportional fraction of a
year of service credit.
Section
2. A member employed for at least the first one-half (1/2) or more
of a 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) This option shall not be exercised by a
member more than one (1) time in a three (3) year period.
(7) The member shall make contributions based
on the equivalent annual contract salary, and interest at the rate of eight (8)
percent shall be added to payments made after June 30 of the fractional
year.
(8) Payment for contributions
shall be made by December 31 immediately following the year in which the
fractional year's service occurred.
(9) The total amount of service credit that
may be purchased shall not exceed five (5) years, and service purchased in
accordance with 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. A member employed for 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 member shall make contributions based
upon the equivalent annual contract salary, and interest at the rate of eight
(8) percent shall be added to payments made after June 30 of the fractional
year.
(7) Payment for contributions
shall be made by December 31 immediately following the year in which the
fractional year's service occurred.
(8) The total amount of service credit that
may be purchased shall not exceed five (5) years, and service purchased in
accordance with 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 4. A member employed for at least one
(1) complete pay period 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) This option shall not be exercised by a
member more than one (1) time in a ten (10) year period.
(7) The member shall make contributions based
on the equivalent annual contract salary, and interest at the rate of eight (8)
percent shall be added to payments made after June 30 of the fractional
year.
(8) Payment for contributions
shall be made by the end of the fiscal year next succeeding the year in which
the last salary payment was made.
(9) The total amount of service credit that
may be purchased shall not exceed five (5) years, and service purchased in
accordance with 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 5. A bona fide leave of absence shall
be administered in accordance with
102 KAR
1:110.
Notes
STATUTORY AUTHORITY: KRS 161.310(1), 161.545
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