102 KAR 1:035 - Employment by retired members; calculation of the Daily Wage Threshold and Average Daily Rate
RELATES TO: KRS 161.500, 161.605
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 retirement system funds and for the transaction of business. This administrative regulation establishes procedures necessary to administer KRS 161.605, concerning income limitations required for employment by retired members.
Section
1. Definitions.
(1) "Average
Daily Rate (ADR)" means the average daily rate of pay a retired member
returning to work receives over a fiscal year as calculated under this
administrative regulation.
(2)
"Daily Wage Threshold (DWT)" means the limitations of seventy-five (75) percent
or sixty-five (65) percent of a member's last annual compensation measured on a
daily rate as prescribed in
KRS
161.605(1) and
(2).
(3) "Extra Service" means service that is not
part of, and is provided outside of, the service provided for Position Contract
Days and does not earn service credit. It includes, service for which
compensation is paid from the district's supplemental or extra service salary
schedules, coaching, professional development, and summer school.
(4) "Position Contract Days" means days
during the regular school or fiscal year that are part of the normal school
calendar and are performed during regular school hours that, standing alone
without any other worked service, earn service credit in TRS. It includes
service performed on these days through full-time employment as defined in
KRS
161.220(21), part-time
employment, and substitute teaching. It does not include extra service as
defined by this section.
Section
2. To determine the DWT of a retiring member, TRS shall first
divide the member's last annual compensation, as defined under
KRS
161.220(23), by the number
of Position Contract Days worked by the member immediately prior to the
member's initial retirement that provided the member with one (1) full year of
service credit. This number shall then be multiplied by either sixty-five (65)
percent or seventy-five (75) percent pursuant to
KRS
161.605(1) and (2), the
product of which is the DWT.
Section
3.
(1) The ADR shall be measured
by adding the total annual compensation for all services performed by the
retired member for the fiscal year and dividing that compensation over the
number of Position Contract Days worked by the retired member. The total annual
compensation for this calculation shall include all forms of remuneration and
benefits, except for health insurance coverage generally provided to all
eligible employees by the employer, reimbursement for travel expense at the
rates approved for state employees, and professional dues. All remuneration of
a retiring member returning to work shall be evaluated to determine whether his
or her ADR exceeded the DWT for each fiscal year worked. If the ADR exceeds the
DWT, the amount of that excess shall be multiplied by the Position Contract
Days worked by the retired member for that year to determine the total
reduction in the retired member's benefits required under
KRS
161.605(6).
(2) Days worked in Position Contract Days
shall be calculated on a full-time equivalent basis. Any day in which the
retired member works less than a full day as defined by school district or
employer policy shall be measured on a pro rata basis so that the retired
member is accredited with a partial day based on the ratio of the hours worked
during the day divided by the district's or employer's definition of a full
day. Full and partial days worked shall be added to calculate the full-time
equivalent number of days worked.
(3) Compensation earned in extra services
will be included in total annual compensation for ADR calculation purposes if
accompanied with any Position Contract Days worked by the retired member. Extra
service shall earn only salary credit.
(4) If extra service is not accompanied by
Position Contract Days worked by the retired member, no salary or service
credit will be awarded. The retirement contributions forwarded to TRS on that
service shall be refunded to the member at the completion of the fiscal year,
and any salary credit awarded to the member for that service shall be
removed.
Notes
STATUTORY AUTHORITY: KRS 161.310
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.