102 KAR 1:185 - Reciprocal program between County Employees Retirement System, Kentucky Employees Retirement System, State Police Retirement System, Legislators' Retirement Plan, Judicial Retirement System, and Teachers' Retirement System
RELATES TO: KRS 6.525, 16.537, 21.427, 61.552, 61.680, 78.605, 161.600, 161.608
NECESSITY, FUNCTION, AND CONFORMITY: KRS 6.525, 16.537, 21.427, 61.552, 61.680, 78.605, 161.600, and 161.608 set forth a broad program of reciprocity among the retirement systems administered under provisions of KRS Chapters 6, 16, 21, 61, 78, and 161. This administrative regulation defines the benefits to be provided and the administrative procedures to be followed in arriving at the appropriate payments to be made to eligible persons.
Section
1. Upon death, disability, or service retirement, the following
procedure shall be applicable to a member having an account in more than one
(1) retirement system:
(1) Combine the
member's service in all systems;
(2) Determine eligibility in each system
based on combined service;
(3) If
eligible in any system, determine benefits; and
(4) Check for specific exceptions such as
prior service, request for separate account or special death or disability
exception.
Section 2.
(1) Reciprocity provisions shall not apply if
the member requests that his or her accounts be separated.
(2) The "final average salary" shall be
calculated by using the highest annual salaries regardless of the system under
which the service was covered. Calculations shall be based on the procedures in
use by each system concerned.
(3)
Each system shall determine benefit payments on the basis of the final average
salary and service credited in that system. Payments shall be made by each
system in accordance with established procedures. If the normal age requirement
has not been met, benefits shall be actuarially reduced.
(4) The member shall not be required to elect
the same retirement option in both systems. Each annuity option shall apply
only to the system for which it is elected.
(5) A member may elect to have each system
treat his service credit in that system without regard to any other service
credit, by requesting that his accounts be separated. If requested, "final
average salary" shall be based on the salaries earned under each system
separately.
Section 3.
(1) If a member qualifies for disability
benefits based on service in the system in which he is currently a contributing
member, he shall receive disability benefits from that system based on the
formula used by that system and the other system(s) shall pay:
(a) Benefits based on separate accounts if
the member elects to maintain separate accounts; or
(b) An actuarial accrued benefit based on the
member's age, service, and final compensation, if eligible for this benefit;
or
(c) A refund if requested by the
member.
(2)
(a) If the combined service in two (2) or
more systems is used to qualify a member for benefits, all systems under which
the combined service would meet service requirements shall participate in
benefit payments.
(b) Each system
shall calculate benefits using the formula in effect in that system.
(c) The Teachers' Retirement System shall pay
benefits during the eligibility period in proportion to the service in the
Teachers' Retirement System as it relates to total combined service.
(d) After the expiration of the eligibility
period, the benefit shall be recalculated on the basis of Teachers' Retirement
System service without discount.
(3) If the combined service of a member meets
service requirements in only one (1) system, that system shall only pay
benefits under their disability formula and the other system shall pay benefits
under subsection (1)(a) to (c) of this section.
(4) The medical requirements for disability
benefits shall be those of the system to which the member is currently
contributing, if combined service meets service requirements of that system. If
service requirements are met in only one (1) system, the medical requirements
of that system shall prevail.
Section
4.
(1) An active member with
Teachers' Retirement System service who has not qualified for Teachers'
Retirement System service retirement at the time of death shall have death and
survivor benefit coverage as follows:
(a) A
Teachers' Retirement System member currently employed in a position covered by
the Teachers' Retirement System shall have full coverage for benefits provided
by
KRS
161.520 and
KRS
161.655 without regard to service in any
other system;
(b) A Teachers'
Retirement System member currently employed in a position covered by the County
Employees Retirement System, the Kentucky Employees Retirement System, or the
State Police Retirement System shall qualify for coverage in proportion to the
service in the Teachers' Retirement System as it relates to total combined
service;
(c) Service in any of the
state retirement systems affected by this administrative regulation shall
qualify as continued coverage under the Teachers' Retirement System if the
member was covered at the termination of employment under the Teachers'
Retirement System and did not withdraw his account with the Teachers'
Retirement System. This coverage shall continue until the time the member
became eligible for death or survivor benefits in the system under which he is
currently employed.
(2)
An active member with Teachers' Retirement System service who has qualified for
service retirement at time of death shall have coverage for death and survivors
benefits as follows:
(a) If the member had
sufficient Teachers' Retirement System service to qualify for retirement on
that service only, full benefits shall be payable to qualified survivors as
provided in
KRS
161.520,
161.525
and
161.655.
The annuity portion shall be calculated as provided in
KRS
21.420 and
61.680
and actuarially adjusted for age and sex of the eligible survivor.
(b) If the member qualified for retirement
only on the basis of combined service, the benefits under
KRS
161.520 and
161.655
shall be paid in the same proportion as the Teachers' Retirement System service
was to total combined service. The annuity portion shall be calculated as
provided in subsection (2)(a) of this section.
Section 5. A former member of the Teachers'
Retirement System who has withdrawn his account and last service credit may
reinstate his account and service credit with the Teachers' Retirement System
if:
(1) The member is a contributing member of
the County Employees Retirement System, the Kentucky Employees Retirement
System, the State Police Retirement System, the Legislators' Retirement Plan,
or the Judicial Retirement System with at least one (1) year of contributing
service; and
(2) If Prior Service
is involved, the member shall have one (1) or more years contributing service
in the Teachers' Retirement System subsequent to July 1, 1941.
Section 6. A member having valid
service credit in more than one (1) of the state retirement systems may elect
to purchase retirement credit for active duty time in one (1) system or he may
divide the service credit between two (2) systems. If service is to be divided
the following additional requirements shall all be met:
(1) The total military service credit in all
systems shall not exceed six (6) years.
(2) The same years active duty shall not be
used in more than one (1) system.
(3) Each system shall calculate the costs of
military retirement credit in accordance with the statutes and administrative
regulations of that system.
Section
7.
(1) A Teachers' Retirement
System member who has service credit in the Kentucky Employees Retirement
System, County Employees Retirement System, State Police Retirement System,
Legislators' Retirement Plan, or Judicial Retirement System shall have his
total service in these retirement systems combined to determine eligibility for
participation in the medical insurance program established by
KRS
161.675.
(2) If a member is eligible for medical
insurance benefits under
KRS
161.675, the member may elect an insurance
plan offered by any of the participating retirement systems in which the member
has service credit.
(3) The cost of
the member's medical insurance premium shall be prorated between the
participating retirement systems based upon the member's service credit in each
respective retirement system.
(4)
The Teachers' Retirement System shall not pay a premium which exceeds the
amount which the member is eligible to receive based upon the premium schedule
in effect for each respective period of coverage.
(5) Spouses and eligible dependents may elect
coverage if the member elects medical insurance coverage under the Teachers'
Retirement System plan, except the retirement system shall not provide premium
costs for spouses and eligible dependents if the member elects medical
insurance coverage under the plan offered by any of the other participating
retirement systems.
(6)
Participation in the Teachers' Retirement System plan shall be limited to the
period of coverage offered at the time of retirement or offered during
subsequent periods of open enrollment.
(7) Reconciliation of prorated premium
payments for medical insurance coverage between participating retirement
systems shall be made not less than once during each fiscal year.
(8) The reciprocal provisions relating to
medical insurance shall be retroactive to July 1, 1990.
Notes
STATUTORY AUTHORITY: KRS 161.310
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