RELATES TO:
KRS
161.620
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
161.310 requires the Board of Trustees of the
Teachers' Retirement System of the State of Kentucky to promulgate
administrative regulations for the administration of the funds of the
retirement system and for the transaction of business.
KRS
161.620 authorizes the Board of Trustees to
approve a three (3) percent retirement factor for years or fractional years of
service in excess of thirty (30) years and establish conditions of eligibility
regarding the type of service credit required for a member to qualify for this
three (3) percent retirement factor.
Section
1. The three (3) percent retirement factor, subject to the
conditions established in Sections 2 through 5 of this administrative
regulation, shall be approved for any member who has accredited to his or her
account with the Teachers' Retirement System of the State of Kentucky a minimum
of five (5) years of service credit for either time actually served in a
position covered by the Teachers' Retirement System of the State of Kentucky
from which contributions were made under
KRS
161.540 and
161.550,
or service credit purchased under
KRS
161.470(2),
161.545,
102
KAR 1:036, or
102
KAR 1:038. Service credit purchases, except as
provided in this section, shall not be considered in determining whether the
member has accumulated the minimum five (5) years of service credit.
Section 2. The three (3) percent retirement
factor shall be applied only to service accredited to a member's account as a
result of either time actually served in a position covered by the Teachers'
Retirement System of the state of Kentucky from which contributions were made
under
KRS
161.540 and
161.550,
or service credit purchased under
KRS
161.545,
102
KAR 1:036, or
102
KAR 1:038, for years or fractional years of service
that occur after the member has accumulated thirty (30) years of service credit
as calculated under Section 3 of this administrative regulation. Service credit
purchases, other than as provided in this section, shall not be subject to the
application of the three (3) percent retirement factor. Notwithstanding any
regulatory provision to the contrary, service credit earned as a result of
employment in a position subject to Social Security shall not be subject to the
application of the three (3) percent retirement factor.
Section 3. The service credit listed in
subsections (1), (2), (3), and (4) of this section shall be considered, in the
chronological order in which it was earned, for the purpose of calculating
whether a member has accumulated thirty (30) years of service credit as a
prerequisite to qualifying for the three (3) percent retirement factor, but
shall not be subject to application of the three (3) percent retirement factor.
Both full years and fractional years of service credit listed in subsections
(1), (2), (3), and (4) of this section shall be considered. Other service
credit shall not be considered for this purpose.
(1) The first thirty (30) or less years of
service earned by the member as a result of either time actually served in a
position covered by the Teachers' Retirement System of the State of Kentucky
from which contributions were made under
KRS
161.540 and
161.550,
or service credit purchased under
KRS
161.470(2),
161.545,
102
KAR 1:036, or
102
KAR 1:038, excluding service credit purchases other
than as provided by this section.
(2) Service rendered in the uniformed
services of the Armed Forces of the United States, including the commissioned
corps of the Public Health Service, the United States Military Reserves and the
Kentucky National Guard, purchased by the member under
KRS
161.507, subject to preemption by the
provisions of the Uniformed Services Employment and Reemployment Rights Act of
1994.
(3) Service credit purchased
under
KRS
161.515 as a result of out-of-state teaching
and peace corps service, under
KRS
161.547 as a result of legislative service,
under
KRS
161.548 as a result of regional community
mental health and mental retardation service program service, and under
KRS
161.549 as a result of federal head start
agency service.
(4) Service credit
in the Legislators' Retirement Plan, State Police Retirement System, Kentucky
Employees Retirement System, and County Employees Retirement System that is
earned as a result of contributions deducted from the member's salary while
employed in a position covered by one (1) of these state administered
retirement systems and that is recognized pursuant to the provisions of
KRS
161.600(3). Service credit
purchases under any one (1) of these state administered retirement systems
shall not be considered, except as follows:
(a) The purchase of military service,
including the commissioned corps of the Public Health Service, the United
States Military Reserves and the Kentucky National Guard, that is credited to
the member's account by each respective state administered retirement system
shall be considered to the extent that this service, added to the service
described in subsection (2) of this section, does not exceed six (6)
years.
(b) The purchase of service
credit in another state administered retirement system to the extent that it
represents services provided and time actually served in a position of
employment under a federal, state, or local government agency.
Section 4. Under no
circumstances and notwithstanding any regulatory provision to the contrary,
accrued sick and vacation leave, service credit that has previously been used
in calculating and providing a retirement allowance in any publicly funded
retirement system, excluding Social Security retirement allowances, and
nonqualified service as described in
KRS
161.5465 and
61.552(26),
shall not be used or considered in any manner to qualify or otherwise entitle a
member to the three (3) percent retirement factor for any year or fraction of a
year, shall not be used or considered in any manner in calculating whether the
member has accumulated thirty (30) years as a prerequisite to qualifying for
the three (3) percent retirement factor, and shall not be used or considered in
any manner in calculating whether the member has accumulated the threshold five
(5) years of service credit described in Section 1 of this administrative
regulation.
Section 5. The
provisions of this administrative regulation shall apply only to those persons
who initially retire with an effective retirement date of July 1, 2004 or
later.