161.569 Effect of election to participate -- Payment of benefits -- Taxation and
376 words·~2 min read·
/ky/161-569A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
attachment of benefits -- Employer contributions.
(1)Any person electing to participate in the optional retirement plan shall be ineligible
for membership in the regular retirement plan of the Kentucky Teachers' Retirement
System for as long as the participant is employed in a position for which the
optional retirement plan is available, except as provided in KRS 161.568(1).
(2)Any person electing to participate in the optional retirement plan shall acknowledge
in writing that the benefits payable to participants are not the obligation of the
Commonwealth of Kentucky or the Kentucky Teachers' Retirement System, and
that these benefits and other rights of the optional retirement plan are the liability
and responsibility solely of the designated companies to which contributions have
been made.
(3)Benefits shall be payable to optional retirement plan participants or their
beneficiaries by the designated companies in accordance with the contracts issued
by each company and the retirement plan provisions adopted by each public
institution.
(4)Annuity contracts issued under the optional retirement plan and all rights of a
participant in the optional retirement plan shall be exempt from any state, local, or
municipal tax; assessment for the insolvency of any life, health, or casualty
insurance company; any levy or sale, garnishment, or attachment; or any process
whatsoever, and shall be unassignable except as otherwise specifically provided by
the contracts offered under the optional retirement plan adopted by the respective
public institutions of higher education. Except contracts issued and rights accrued in
the optional retirement plan on or after January 1, 1998, shall be subject to the tax
imposed by KRS 141.020, to the extent provided in KRS 141.010 and 141.0215.
(5)Each institution shall contribute for each payroll period of each fiscal year to the
Kentucky Teachers' Retirement System, an amount equal to five and one-tenth
percent (5.1%) of the total salaries of all persons who elect or elected to participate
in the optional retirement plan instead of the Kentucky Teachers' Retirement
System. This payment shall continue to be made until June 30, 2018. No
contributions shall be payable on or after July 1, 2018, to the Kentucky Teachers'
Retirement System for all persons who elect or elected to participate in the optional
retirement plan instead of the Kentucky Teachers' Retirement System.