161.661 Disability retirement.
2,270 words·~10 min read·
/ky/chapter-161/161-661A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Any member who is accredited by the Teachers' Retirement System for five
(5)or more years of service in Kentucky after July 1, 1941, may retire for
disability and be granted a disability allowance if found to be eligible as
provided in this section. Application for disability benefits shall be made
within one
(1)year of the last contributing service in Kentucky, and the
disability must have occurred during the most recent period of employment in
a position covered by the Teachers' Retirement System and subsequent to the
accreditation by the Teachers' Retirement System of five
(5)years of
retirement system service credit in Kentucky. The deadline for filing an
application for disability benefits shall not be subject to the jurisdiction of any
court or appeal process, nor shall it otherwise be tolled or waived. A disability
occurring during the regular vacation immediately following the last period of
active service in Kentucky or during an official leave for which the member is
entitled to make regular contributions to the retirement system, shall be
considered as having occurred during a period of active service.
(b)The annual disability allowance shall be equal to sixty percent (60%) of the
member's final average salary.
(c)The following individuals shall not be eligible for disability benefits under
this section:
1. Members with twenty-seven
(27)or more years of service credit; and
2. Individuals who become members on or after July 1, 2021, who are
eligible for an unreduced benefit under KRS 161.600(1)(b)2. or (d).
(2)The provisions of KRS 161.520, 161.525, and subsections (3), (4), and
(5)of this
section shall not apply to disability retirees whose benefits were calculated on the
service retirement formula nor to survivors of these members.
(3)Members shall earn one
(1)year of entitlement to disability retirement, at sixty
percent (60%) of the member's final average salary, for each four
(4)years of
service in a covered position, but any member meeting the service requirement for
disability retirement shall be credited with no less than five
(5)years of eligibility.
(4)A member retired by reason of disability shall continue to earn service credit at the
rate of one
(1)year for each year retired for disability. This service shall be credited
to the member's account at the expiration of entitlement as defined in subsection
of this section, or when the member's eligibility for disability benefits is terminated
upon recommendation of a medical review committee, and this service shall be
used in calculating benefits as provided in subsection
(5)of this section, but under
no circumstances shall this service be used to provide the member with more than
twenty-seven
(27)years of total service credit. The service credit shall be valued at
the same level as service earned by active members as provided under KRS 161.600
or 161.620.
(5)Any member retired by reason of disability and remaining disabled at the expiration
of the entitlement period shall have his or her disability benefits recalculated using
the service retirement formula with service credit earned as set out in subsection
of this section. The retirement allowance shall be calculated as set forth in KRS
161.620, except that those persons less than sixty
(60)years of age shall be
considered as sixty
(60)years of age. Members having their disability benefits
recalculated under this subsection shall not be entitled to a benefit based upon an
average of their three
(3)highest salaries as set forth in KRS 161.220(9), unless
approved otherwise by the board of trustees.
(6)Members who have their disability retirement allowance recalculated at the
expiration of the entitlement period shall continue to have coverage under the post-
retirement medical insurance program. Restrictions on employment shall remain in
effect until the member attains age seventy
(70)or until the member's eligibility is
discontinued. KRS 161.520 and 161.525 shall not apply to survivors of disability
retirees whose retirement allowances have been recalculated at the expiration of the
entitlement period. Members who have their disability retirement allowance
recalculated at the expiration of their entitlement period shall be entitled to a
minimum monthly allowance of five hundred dollars ($500) as the basic straight
life annuity. The minimum allowance shall be effective July 1, 1992, and shall
apply to those members who have had their allowance recalculated prior to that date
and to disability retirees who will have their benefit allowance recalculated on or
after that date. For individuals who become members on or after July 1, 2021,
disability retirement payments and any other recurring payments payable by any
other state-administered retirement system shall be applied to reduce, on a dollar-
for-dollar basis, the minimum monthly disability retirement allowance payable
under this subsection.
(7)Effective July 1, 1992, members retired for disability prior to July 1, 1964, shall be
entitled to a minimum monthly allowance of five hundred dollars ($500) as their
basic straight life annuity and their surviving spouse shall be eligible for survivor
benefits as provided in KRS 161.520(1)(a) and (b).
(8)Any member retired by reason of disability may voluntarily waive disability
benefits and any member, who is immediately eligible for service retirement, may
elect to waive disability benefits and retire for service on the basis of service
credited to the member on the effective date of the disability retirement.
(9)In order to qualify for retirement by reason of disability a member must suffer from
a physical or mental condition presumed to be permanent in duration and of a
nature as to render the member incapable of being gainfully employed in a covered
position. The incapability must be revealed by a competent examination by a
licensed physician or physicians and must be approved by a majority of a medical
review committee.
(10)A member retired by reason of disability shall be required to undergo periodic
examinations at the discretion of the board of trustees to determine whether the
disability allowance shall be continued. When examination and recommendation of
a medical review committee indicate the disability no longer exists, the allowance
shall be discontinued. Failure to undergo examinations and provide the Teachers'
Retirement System with requested medical documentation shall result in a
suspension of disability benefits.
(11)Eligibility for payment shall begin on the first day of the month following receipt of
the application in the Teachers' Retirement System office, or the first of the month
next following the last payment of salary or sick leave benefits by the employer,
whichever is the later date.
(12)No person who receives a disability allowance may be employed in a position that
entails duties or qualification requirements similar to positions subject to
participation in the retirement system either within or without the State of
Kentucky. So doing shall constitute a misdemeanor and shall result in loss of the
allowance from the first date of this service. For purposes of this subsection and
subsection
(13)of this section, "employment" and "occupation," and derivatives
thereof, mean any activity engaged in by the member receiving disability allowance
from which income is earned. A member who applies for and is approved for
disability retirement on or after July 1, 2002, and whose annual disability benefit is
less than forty thousand dollars ($40,000) may earn income in any occupation other
than covered employment only to the extent that the annual income from the other
employment when added to the annual disability benefit does not exceed forty
thousand dollars ($40,000). For any member who exceeds this limit as a result of
income from other employment, the Kentucky Teachers' Retirement System shall
reduce the member's disability benefit on a dollar-for-dollar basis for each dollar
that the member's combined annual disability benefit and annual income from other
employment exceeds forty thousand dollars ($40,000). The board of trustees may
annually increase the forty thousand dollar ($40,000) limit by the percentage
increase in the annual average of the consumer price index for all urban consumers
for the most recent calendar year as published by the Federal Bureau of Labor
Statistics, not to exceed five percent (5%). The retirement system may require
income and employment verification from the member, including but not limited to
copies of tax returns and federal forms W-2 and W-4P. Failure to provide the
Teachers' Retirement System with requested income and employment verification
documentation shall result in a suspension of disability benefits. Submission of
false or fraudulent documentation shall, in addition to criminal penalties, result in
disqualification of all disability benefits from the date the fraudulent documentation
was submitted.
(13)All members who applied for disability retirement before July 1, 2002, and were
approved as a result of that application shall be subject to the income limitations as
they existed on June 30, 2002, until July 1, 2006. Effective July 1, 2006, the
twenty-seven thousand dollar ($27,000) limitation shall be increased to forty
thousand dollars ($40,000) and may be adjusted by the board of trustees by the
consumer price index in the manner described in subsection
(12)of this section.
The recipient of a disability allowance who engages in any gainful occupation other
than covered employment must make a report of the duties involved, compensation
received, and any other pertinent information required by the board of trustees. The
retirement system may require income and employment verification from the
member, including but not limited to copies of tax returns and federal forms W-2
and W-4P. Failure to provide the Teachers' Retirement System with requested
income and employment verification documentation shall result in a suspension of
disability benefits. Submission of false or fraudulent documentation shall, in
addition to criminal penalties, result in disqualification of all disability benefits
from the date the fraudulent documentation was submitted.
(14)The board of trustees shall designate medical review committees, each consisting of
three
(3)licensed physicians. A medical review committee shall pass upon all
applications for disability retirement and upon all applicant statements, medical
certifications, and examinations submitted in connection with disability
applications. The disposition of each case shall be recommended by a medical
review committee in writing to the retirement system. Members of a medical review
committee shall follow administrative regulations regarding procedures as the board
of trustees may enact and shall be paid reasonable fees and expenses as authorized
by the board of trustees in compliance with the provisions of KRS 161.330 and
161.340. The retirement system may secure additional medical examinations and
information as it deems necessary. A member may appeal any final agency decision
denying his or her disability retirement application pursuant to the provisions of
KRS 161.250(2). In the event of such an appeal, the member and his or her legal
counsel shall be entitled to all written recommendations and reports submitted by
the medical review committee to the Teachers' Retirement System. Such
recommendations and reports shall otherwise be maintained in a confidential
manner and shall not be subject to release under any conditions, including in
response to a subpoena or order issued by a court of law notwithstanding any other
statute to the contrary.
(15)A disability may be presumed to be permanent if the condition creating the
disability may be reasonably expected to continue for one
(1)year or more from the
date of application for disability benefits.
(16)Any member who has voluntarily waived disability benefits or whose disability
benefits have been discontinued on recommendation of a medical review
committee, may apply for reinstatement of disability benefits. The application for
reinstatement must be made to the retirement system within twelve
(12)months of
the date disability benefits terminated. If the termination of benefits were voluntary,
the reinstatement may be made without medical examination if application is made
within three
(3)months of the termination date. Other applications for reinstatement
will be processed in the same manner as new applications for benefits.
(17)No person who is receiving disability benefits under this section may be employed
in a position which qualifies the person for membership in a retirement system
financed wholly or in part with public funds. Employment in a position prohibited
by this subsection shall result in disqualification for those disability benefits from
the date of employment in the prohibited position.
(18)Any person who is receiving benefits and becomes disqualified from receiving
those benefits under this section, or becomes disqualified from receiving a portion
of those benefits due to income from other than covered employment, shall
immediately notify the Teachers' Retirement System of this disqualification in
writing and shall return all benefits paid after the date of disqualification. Failure to
comply with these provisions shall create an indebtedness of that person to the
Teachers' Retirement System. Interest at the rate of eight percent (8%) per annum,
beginning on the date the written notice of disqualification is sent, shall be charged
if the debt is not repaid within sixty
(60)days after the date of written notice of
disqualification. Failure to repay this debt creates a lien in favor of the Teachers'
Retirement System upon all property of the person who improperly receives
benefits and does not repay those benefits. The Teachers' Retirement System may,
in order to collect an outstanding debt, reduce or terminate any benefit that a
member is otherwise entitled to receive.
(19)Notwithstanding any other provision of this section to the contrary, individuals who
become members on or after January 1, 2022, shall be eligible for an actuarially
determined disability benefit as prescribed by the board of trustees via
administrative regulations promulgated by the board. The board of trustees shall
arrange by appropriate contract or on a self-insured basis a disability plan to
provide the disability benefits and may adjust the benefits in accordance with KRS
161.633(3) or 161.634(3).