21.460 Refund of contributions or account balance for members who began
705 words·~3 min read·
/ky/21-460A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
participating before January 1, 2014 -- Purchase of service credit --
Interest on deferred refunds -- Repayment.
(a)For members who began participating in the Judicial Retirement Plan
prior to January 1, 2014: If any member of the plan ceases, other than by
death or by disability retirement under KRS 21.410, to hold an office
qualifying him or her for membership in the plan established by KRS
21.350 to 21.480, without having met the requirements for vesting, he or
she shall be refunded on demand the amount of his or her accumulated
contributions and any service credit he or she had in the plan shall be
nullified.
(b)A member who begins participating in the Judicial Retirement Plan on or
after January 1, 2014, may, if the member ceases to hold an office
qualifying him or her for membership in the plan established by KRS
21.345 to 21.580, elect to take a refund of his or her accumulated account
balance subject to the limitations provided by KRS 21.402.
(2)The member may elect to leave his or her contributions in the plan, in which
event the service credit he or she had in the plan shall be considered to be
service credit for vesting purposes as provided in KRS 21.375 and for service
retirement eligibility as provided in KRS 61.680(7), and, in the event he or she
again becomes a member of the Judicial Retirement Plan, shall be counted
toward his or her total service credit in that plan.
(3)If a person who has been refunded his or her accumulated contributions or
accumulated account balance in accordance with subsection
(1)of this section
subsequently becomes a member of the Legislators' Retirement Plan, the
Kentucky Employees Retirement System, County Employees Retirement
System, State Police Retirement System, or Teachers' Retirement System, he
or she may while holding such membership repurchase the service credit he or
she previously had in the Judicial Retirement Plan by repaying to that plan the
amount that was refunded to him or her with interest at six percent (6%) per
annum, in which event such service credit shall have operative effect to the
same limited extent as provided in subsection
(2)of this section. Service
purchased under this subsection on or after January 1, 2014, shall not be used
to determine the member's participation date in the Judicial Retirement Plan.
(4)If a person who has been refunded his or her accumulated contribution or
accumulated account balance in accordance with subsection
(1)of this section
thereafter becomes again the holder of an office qualifying him or her for
membership in the Judicial Retirement Plan, he or she shall not be entitled to
credit for his or her prior period of service unless he or she has previously
repaid his or her refunded contributions in accordance with subsection
(3)of
this section or unless within thirty
(30)days after again assuming office he or
she repays to the plan the amount that was refunded to him or her with interest
at six percent (6%) per annum. Service purchased under this subsection on or
after January 1, 2014, shall not be used to determine the member's
participation date in the Judicial Retirement Plan.
(5)If the taking of a refund of contributions by a member of the Kentucky Judicial
Retirement Plan, when first entitled thereto, would subject the member to a federal excise tax, by reason of the refund's being made before the member has reached an age designated by the federal taxing act, and the member has elected, pursuant to subsection
(2)of this section, to defer taking a refund, so much of the contributions as would have been subject to the excise tax shall accrue interest at the rate of six percent (6%) per annum, from the date the member first could have taken a refund until the date the refund is taken or the date as of which the federal excise tax no longer would apply to a refund, whichever is sooner, the interest to be paid by the plan at the time of the refund. The provisions of this subsection shall not apply to members who begin participating in the Judicial Retirement Plan on or after January 1, 2014.