61.625 Refund of account balance or contributions.
515 words·~2 min read·
/ky/chapter-61/61-625A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Prior to the member's effective retirement date, a member if living, or if not
living, his or her designated beneficiary, shall have the right to request a
refund of his or her accumulated account balance if the member's employment
has been terminated and the member is not participating in the same system.
(b)Upon the death of a member occurring on or after his or her effective
retirement date, the member's beneficiary shall have the right to request a
refund of the member's accumulated contributions, reduced by the amount of
any retirement allowances previously received.
(c)If a member receives a refund of his or her accumulated account balance in
error while the member is employed or participating in the same system from
which the refund was issued in error:
1. The Authority shall notify the member;
2. The member shall repay the system the full amount of his or her
refunded accumulated account balance by lump sum or by incremental
payments made under an incremental payment agreement with the
Authority within twelve
(12)months of the date the Authority sent the
notice; and
3. Upon full repayment of the accumulated account balance to the system,
the Authority shall reinstate the member's previous membership date
and associated service credit and take all other actions necessary to
correct the member's records to reflect the reinstated membership date in
accordance with KRS 61.685.
(2)Payments made under this section shall be in lieu of any other benefits due for the
period of service under any of the provisions of KRS 16.505 to 16.652, 61.510 to
61.705, and 78.510 to 78.852, unless the period of service is regained as provided
under KRS 61.552. Payments of taxable distributions made pursuant to this section
shall be subject to state and federal tax as appropriate.
(3)A refund of contributions of members whose benefits have been terminated
pursuant to KRS 6.696 shall be governed by that section.
(4)A refund of contributions to members whose benefits have been terminated
pursuant to KRS 61.535(3) shall be governed by the provisions of that subsection.
(5)If a member receives a refund of his or her accumulated account balance under
subsection
(1)of this section, but is later reinstated without loss of pay by order of
the Personnel Board under KRS 18A.095, by order of the Kentucky Commission on
Human Rights, or by court order:
(a)The member shall repay the system the full amount of his or her refunded
accumulated account balance by lump sum or by incremental payments made
under an incremental payment agreement with the Authority within twelve
(12)months of the date of the final order by the Personnel Board, the
Kentucky Commission on Human Rights, or the court;
(b)Upon full repayment of the accumulated account balance to the system, the
Authority shall reinstate the member's previous membership date and
associated service credit; and
(c)A member's failure to pay the full amount of his or her refunded accumulated
account balance as required under this subsection shall be treated as an
overpayment of benefits under KRS 61.685.