78.540 Membership -- Cessation.
609 words·~3 min read·
/ky/chapter-78/78-540A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Membership in the system shall consist of the following:
(a)All persons who become employees of a participating county after the date the
county first participates in the system, except that:
1. Mayors and members of city legislative bodies may decline prior to their
participation in the system; and
2. City managers or other appointed local government executives who
participate in a retirement system, other than Social Security, may
decline prior to their participation in the system;
(b)All persons who are employees of a county on the date the county first
participates in the system, either in service or on authorized leave from
service, and who elect within thirty
(30)days next following the county's
participation, or in the case of persons on authorized leave, within thirty
days of their return to active service, to become members and thereby agree to
make contributions as provided in KRS 78.520 to 78.852; and
(c)All persons electing coverage in the system under KRS 78.530(3)(d).
(2)The provisions of subsection (1)(a) and
(b)of this section notwithstanding, cities
which participate in the CERS and close existing local pension systems to new, or
all members pursuant to the provisions of KRS 78.530, 95.520, 95.621, or 95.852
shall not be required to provide membership in the County Employees Retirement
System to employees in any employee category not covered by a city pension
system at the date of participation.
(3)Membership in the system shall not include:
(a)Persons who are not eligible to participate in the system as provided by KRS
78.535; or
(b)Employees who are simultaneously participating in another state-administered
defined benefit plan within Kentucky other than those administered by the
Kentucky Retirement Systems or the County Employees Retirement System.
(a)The membership of any person in the system shall cease:
1. Upon withdrawal of his or her accumulated account balance at or any
time after termination of employment, regardless of length of service;
2. Upon retirement;
3. Upon death;
4. For persons hired prior to August 1, 2000, upon termination of
employment with prejudice, as defined by paragraph
(b)of this
subsection; or
5. For persons hired on or after August 1, 2000, upon conviction of a
felony relating to the person's employment as provided in paragraph
of this subsection.
(b)For purposes of KRS 78.510 to 78.852, termination of employment with
prejudice shall mean termination as the result of conviction of the member in
a court of competent jurisdiction of embezzlement or larceny of public funds
or property or malfeasance in office, or the forcing of a member to make
restitution for any funds or property criminally taken by the member at the
time of termination of employment.
(c)Notwithstanding any provision of law to the contrary, an employee hired on
or after August 1, 2000, who participates in the system and who is convicted,
in any state or federal court of competent jurisdiction, of a felony related to
his or her employment shall forfeit rights and benefits earned under the
system, except for the return of his or her accumulated contributions and
interest credited on those contributions. The payment of retirement benefits
ordered forfeited shall be stayed pending any appeal of the conviction. If the
conviction is reversed on final judgment, no retirement benefit shall be
forfeited. The employer shall notify the system when an employee is
convicted under the provisions of this subsection.
(d)When membership ceases, except in the case of retirement, the member shall
thereafter lose all right to any retirement allowance or benefits under KRS
78.510 to 78.852 arising from service prior to the date of such cessation of
membership.