161.470 Membership -- Forfeiture of service credit -- Termination of membership -
951 words·~4 min read·
/ky/161-470A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
- Forfeiture of benefits -- Reinstatement -- Payment of accumulated account
balance.
(1)The membership of the retirement system shall consist of all new members, all
present teachers, and all persons participating under the retirement system as of
June 30, 1986, except as provided in Acts 1938 (1st Ex. Sess.), Ch. 1, paragraph 29.
The board of trustees of the Teachers' Retirement System shall be responsible for
final determination of membership eligibility and may direct employers to take
whatever action that may be necessary to correct any error relating to membership.
(2)Service credit shall be forfeited upon withdrawal. If a member again enters service
it shall be as a new member, except that any teacher who withdraws by claiming his
or her deposits may repay the system the amount withdrawn plus interest and
reestablish his or her service credit as provided in subsection
(3)of this section.
(3)Effective July 1, 1988, and thereafter, an active contributing member of the
retirement system with contributing service equal to one
(1)year may regain service
credit by depositing in the teachers' savings fund the amount withdrawn with
interest at the rate to be set by the board of trustees, and computed from the first of
the month of withdrawal and including the month of redeposit.
(4)Effective July 1, 1974, any active contributing member with at least two
(2)years
of contributing service credit who declined membership as provided in Acts 1938
(1st Ex. Sess.), Ch. 1, paragraph 29, may secure service credit for prior service, and
for any subsequent service prior to date of membership, by depositing in the
teachers' savings fund contributions for each year of subsequent service prior to
date of membership, with interest at the rate of eight percent (8%) compounded
annually to the date of deposit.
(5)Membership in the retirement system shall be terminated:
(a)By retirement for service;
(b)By death;
(c)By withdrawal of the member's accumulated account balance;
(d)When a member, having less than five
(5)years of Kentucky service is absent
from service for more than three
(3)consecutive years; or
(e)For persons whose membership begins on or after August 1, 2000, when a
member is convicted, in any state or federal court of competent jurisdiction, of
a felony related to his or her employment as provided in subparagraphs 1. and
2. of this paragraph.
1. Notwithstanding any provision of law to the contrary, a person whose
membership begins on or after August 1, 2000, who is convicted, in any
state or federal court of competent jurisdiction, of a felony related to his
or her employment shall forfeit rights and benefits earned under the
retirement system, except for the return of his or her accumulated
contributions and interest credited on those contributions through the
date of conviction.
2. The payment of retirement benefits ordered forfeited shall be stayed
pending any appeal of the conviction. If the conviction is reversed on
final judgment, no retirement benefits shall be forfeited.
Except for paragraph
(e)of this subsection, upon termination of member accounts
under this subsection, funds in the account shall be transferred to the guarantee
fund. Inactive members may apply for refunds of these funds at any time. The
terminated service shall be reinstated, if not withdrawn by the member, in the event
that the member returns to active contributing service.
(6)In case of withdrawal from service prior to eligibility for retirement, the board of
trustees shall on request of the member return all of his or her accumulated account
balance, including any payments made by the member to the state accumulation
fund, but the member shall have no claim on any contributions made by the state or
employer with a view to his or her retirement, except as provided by KRS 161.635
and 161.636, or to contributions made to the medical insurance fund. A member
who is withdrawing from service prior to retirement eligibility shall be entitled to a
refund following sixty
(60)days after his or her last day of employment. If the
member is eligible for an immediate service retirement allowance as provided in
KRS 161.600, no withdrawal and refund shall be permitted, unless the allowance
would prohibit the member from qualifying for Social Security benefits or the
member elects to withdraw part or all of his or her service for the purpose of
obtaining service credit in another retirement plan. Requests for refund of
contributions by the member must be filed on forms prescribed by the Teachers'
Retirement System and the employer shall be financially responsible for all
information that is certified on the prescribed form. A member may not withdraw
any part of his or her accumulated account balance in the retirement system except
as provided by this subsection.
(7)Except as provided in KRS 161.520 and 161.525, in case of death prior to
retirement, the board of trustees shall pay to the estate of the deceased member,
unless a beneficiary was otherwise applicably designated by the deceased member,
then to the beneficiary, all of his or her accumulated account balance, including any
payments made by the member to the state accumulation fund, but the estate or
beneficiary shall have no claim on any contributions made by the state or employer
with a view to the retirement of the member, except as provided by KRS 161.635
and 161.636, or to contributions made to the medical insurance fund.
(8)Any active contributing member of the Kentucky Employees Retirement System,
the County Employees Retirement System, the State Police Retirement System, or
the Judicial Retirement System may use service, under that retirement system for
the purpose of meeting the service requirement of subsections
(3)and
(4)of this
section.