RELATES TO:
KRS
161.220(22),
161.440,
161.507,
161.515,
161.545,
161.5465,
161.547,
161.548,
161.549
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
161.310 requires the Board of Trustees of the
Teachers' Retirement System of the State of Kentucky (TRS) to promulgate all
administrative regulations for the administration of the funds of the
retirement system. KRS 161.507,
161.515,
161.545,
161.5465,
161.547,
161.548, and
161.549 permit members to
purchase service credit. These purchases of service credit are purchasable at
full actuarial cost as defined by
KRS
161.220(22). This
administrative regulation provides the interest rate to be accredited to
members who make an advance payment for service credit at full actuarial cost
prior to retirement and the method for paying the full actuarial cost of health
insurance.
Section 1. Members who make
an advance payment for service credit at full actuarial cost priorto their
effective retirement date shall be accredited regular interest against their
payment(s) at the rate provided for members under
KRS
161.220(13). This interest,
as assigned under KRS 161.440, shall be accredited
at the time of retirement when the final full actuarial cost purchase amount is
reconciled and shall be subject to adjustment to reflect the actuarial
experience of the retirement system.
Section
2. Unless coverage is waived, the full actuarial cost for health
insurance shall be paid by the member as follows:
(1) Members shall not be required to pay in
advance any lump sum amount towards health insurance in making a full actuarial
cost service purchase.
(2) Members
who are not otherwise eligible to retire prior to making a full actuarial cost
service purchase shall pay the full amount of the health insurance premium plus
any amount required under
KRS
161.675(4)(b) until the date
is reached that they would have been eligible to retire the account under
KRS
161.600 without the purchase. Upon reaching
the date at which the retiree would have been eligible to retire the account
under KRS
161.600 without the purchase, the retiree
shall be entitled to the monthly health insurance benefit supplement approved
by the board for each year based upon their years of service credit excluding
the full actuarial cost service purchased. The retiree shall continue to pay
monthly to the retirement system any amount required under
KRS
161.675(4)(b) and any
difference between the supplement as described in the previous sentence and the
full cost of the monthly premium.
(3) Members who are eligible to retire the
account under KRS
161.600 prior to making a full actuarial cost
service purchase shall, upon retirement, be entitled to the monthly health
insurance benefit supplement approved by the board for each year based upon
their years of service credit, excluding the full actuarial cost service
purchased. The retiree shall pay to the retirement system monthly any amount
required under KRS
161.675(4)(b) and any
difference between the supplement as described in the previous sentence and the
full cost of the monthly premium.
