161.636 Supplemental component for persons who became university members on
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/ky/161-636A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
or after January 1, 2022 -- Benefit -- Contributions -- Election upon
termination of employment and upon retirement -- Plans authorized under
Internal Revenue Code.
(1)An individual who becomes a university member of the Teachers' Retirement
System on or after January 1, 2022, shall receive the retirement benefits provided
by this section in addition to the retirement benefits provided under KRS 161.620.
The retirement benefits provided by this section shall be known as the supplemental
benefit component.
(2)The supplemental benefit component shall provide a benefit based upon a member's
accumulated account balance which shall include:
(a)Mandatory contributions made by the member as provided by KRS
161.540(1)(d)2.;
(b)Voluntary contributions made by the member, which may include lump-sum
payments;
(c)Mandatory contributions made by the employer as provided by KRS
161.550(1)(e)2.;
(d)Voluntary employer contributions; and
(e)Regular interest, which shall be credited to the member's account annually on
June 30 of each fiscal year, by multiplying the member's accumulated account
balance in the supplemental benefit component on June 30 of the preceding
fiscal year by the regular interest rate.
(a)Member contributions and employer contributions as provided by subsection
(2)(a) to
(d)of this section shall be credited to the member's account at least
monthly as contributions are reported and posted to the system in accordance
with KRS 161.560.
(b)No employer contributions or interest shall be provided to a member who has
taken a refund of his or her accumulated account balance as provided by KRS
161.470 or who has retired and annuitized his or her accumulated account
balance as authorized by this section.
(a)Upon termination of employment, a member who has less than five
(5)years
of service credited under KRS 161.500, who elects to take a refund of his or
her accumulated account balance as provided by KRS 161.470, shall forfeit
the accumulated employer contribution, and shall only receive a refund of his
or her accumulated contributions.
(b)Upon termination of employment, a member who has five
(5)or more years
of service credited under KRS 161.500, who elects to take a refund of his or
her accumulated account balance as provided by KRS 161.470, shall receive a
full refund of his or her accumulated account balance.
(5)A university member eligible to retire under KRS 161.600(2) may upon retirement,
in addition to the other benefits provided by KRS 161.620, elect to:
(a)Have all or a portion of his or her accumulated account balance in the
supplemental benefit component annuitized into a lifetime monthly retirement
allowance by the system in accordance with the actuarial assumptions and
actuarial methods adopted by the board for the supplemental benefit
component and in effect on the member's retirement date;
(b)Receive the actuarial equivalent of his or her retirement allowance calculated
under paragraph
(a)of this subsection payable under one
(1)of the options
established by the board pursuant to KRS 161.630;
(c)Take a distribution of the accumulated account balance in the supplemental
benefit component over a period certain as authorized by the board; or
(d)Take a full or partial refund of his or her accumulated account balance as
provided by KRS 161.470.
A member participating in the supplemental benefit component shall not be
required to take a distribution or annuitize his or her accumulated account balance
in the supplemental benefit component when he or she begins drawing a retirement
allowance from the foundational benefit component and may instead choose to
begin drawing a distribution or annuitize his or her accumulated account balance in
the supplemental benefit component at any date following his or her retirement date
from the foundational benefit component.
(6)This section only applies to individuals who become university members of the
Teachers' Retirement System on or after January 1, 2022.
(7)The board of trustees shall have the authority to utilize or establish any plan or
plans authorized under the Internal Revenue Code to provide the benefits set forth
in this section.