6.515 Terms of service to qualify -- Military service credit acquisition -- Special provisions for active members. - Kentucky Statutes

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Page 1 of 4 6.515 Terms of service to qualify -- Military service credit acquisition -- Special provisions for active members. (1) Service credit in the Legislators' Retirement Plan shall be acquired only by service as a legislator after July 1, 1980, while a member of the plan, by transfer of credit as
provided in KRS 6.505, or by purchase or transfer of credit as provided in this
section. (2) (a) 1. Any active member of the Legislators' Retirement Plan who has at least
five (5) years of service credit in the Legislators' Retirement Plan, or his
beneficiary acting in his place if the member dies prior to retirement,
shall receive service credit for a maximum of four (4) years for his
period of service in the Armed Forces of the United States, if his
discharge therefrom is honorable and he has not been credited with the
service by any other retirement system administered by the
Commonwealth of Kentucky, by paying the retirement system thirty-five
percent (35%) of the actuarial cost of the service as determined by the
board of trustees, based on assumptions used in the most recent biennial
evaluation. The service credit shall be awarded and the cost shall be
determined in conformity with the rate which applies to the legislator in
question under KRS 6.520. Service credit awarded under this subsection
shall be equivalent, for all purposes of the Legislators' Retirement Plan,
to other service credit earned in the plan. 2. Any active member of the Legislators' Retirement Plan who has at least
five (5) years of service credit in the Legislators' Retirement Plan may
purchase and receive service credit for one (1) month of service for each
six (6) months of service in the reserves or the National Guard by paying
the retirement system one hundred percent (100%) of the actuarial cost
of the service as determined by the board of trustees, based on the
assumptions used in the most recent biennial evaluation. The service
credit shall be awarded and the cost shall be determined in conformity
with the rate that applies to the legislator in question under KRS 6.520.
Service credit awarded as provided in this subsection shall be
equivalent, for all purposes of the Legislators' Retirement Plan, to other
service credit earned in the plan. The service in the military reserves or
the National Guard shall be treated as service earned prior to
participation in the plan. The purchase can be made by the member by
transfer, if authorized under subsection (7)(d) of this section, or in a
lump-sum payment or by installment payments, as set forth in paragraph
(b) of this subsection. The payment shall not be picked up by the
employer as provided in KRS 6.505(4). (b) The member may purchase all of his military service credit at one (1) time, or in increments of no less than one (1) year, unless there is a fraction remaining
after all full years have been paid for. Payment of the total or the increment
may be made by lump-sum or by monthly installments through payroll
deduction. If the member chooses to pay by installment, the cost of the service Page 2 of 4 credit shall be computed in the same manner as for a lump-sum payment,
which shall be the principal. Interest, at the annual actuarial rate in effect at
the time each payment is made, shall be added to each monthly payment at the
rate of one-twelfth (1/12) of the annual interest rate applied to the declining
principal amount. Installment purchases shall be for no less than twelve (12)
nor more than sixty (60) months. If the member leaves office before
completing his installment payments, he may satisfy his contract by a lump-
sum payment of the remaining principal amount, but no further installment
payments shall be accepted thereafter. In this case, the member shall be
credited with the military service credit for which he has paid, in years or
months but no fraction less than a full month, and any payment remaining
after credit for full months has been awarded shall be returned to the member. (c) The payments made under this section shall be considered accumulated contributions of the member and shall not be picked up by the employer under
KRS 6.505(4). (3) In the event of divorce, rights to benefits shall be considered marital property subject to the provisions of KRS 403.190. (4) A member who has qualified for benefits under KRS 6.525(1) may transfer to the Legislators' Retirement Plan up to ten (10) years of service credit which he has
earned in a retirement system administered by Kentucky Retirement Systems. If the
member elects to transfer his service credit, the system from which the transfer is
made shall transfer to the legislators' retirement fund an amount equal to the
employee's and employer's contributions attributable to that credit, together with
interest on the contributions from the date made to date of transfer at the actuarially
assumed interest rate of the system from which the transfer is made in effect at the
time the contributions were made, compounded annually at that same interest rate.
The member shall be entitled to the transferred service credit, at the rate at which he
qualifies under KRS 6.520, when he pays the total difference between the amount of
the funds transferred and the cost of the credit to the Legislators' Retirement Plan, as
determined by the actuary for the Legislators' Retirement Plan. The member may
pay by transfer, if authorized under subsection (7)(d) of this section, by lump sum,
or by increments, as provided for in this section. The payments made under this
section shall be considered accumulated contributions of the member and shall not
be picked up by the employer under KRS 6.505(4). (5) (a) Any active member of the Legislators Retirement Plan who is vested in the Legislators Retirement Plan under KRS 6.525 shall receive service credit for a
maximum of four (4) years each for his period of service as a Domestic
Relations Commissioner, a Master Commissioner, or a District Court Trial
Commissioner of the Commonwealth of Kentucky, or a combination thereof,
if the service has not been credited to the member's account with any other
public defined benefit plan, by paying the retirement system one hundred
percent (100%) of the actuarial cost of the service as determined by the board
of trustees, based on assumptions used in the most recent biennial evaluation.
The period of service to be purchased shall be certified to the board of trustees Page 3 of 4 by the custodian of the records. The service credit shall be awarded and the
cost shall be determined in conformity with the rate that applies to the
member in question under KRS 6.520. Service credit awarded under this
subsection shall be equivalent, for all purposes of the Legislators Retirement
Plan, to other service credit earned in the plan. The member may pay by
transfer, by lump sum, or by increments as set forth in this section. The
payments made under this section shall be considered accumulated
contributions of the member and shall not be picked up by the employer under
KRS 6.505(4). (b) Any active member of the Legislators Retirement Plan who is vested in the Legislators Retirement Plan under KRS 6.525, shall receive service credit for
his period of service to the United States Government, other than service in
the Armed Forces, if the service has not been credited to the member's account
with any other public defined benefit plan, by paying the retirement system
one hundred percent (100%) of the actuarial cost of the service as determined
by the board of trustees, based on assumptions used in the most recent
biennial evaluation. The period of service to be purchased shall be certified to
the board of trustees by the custodian of the records. The service credit shall
be awarded and the cost shall be determined in conformity with the rate that
applies to the member in question under KRS 6.520. Service credit awarded
under this subsection shall be equivalent, for all purposes of the Legislators
Retirement Plan, to other service credit earned in the plan. The member may
pay by transfer, by lump sum, or by increments as set forth in this section. The
payments made under this section shall be considered accumulated
contributions of the member and shall not be picked up by the employer under
KRS 6.505(4). (c) Any member of the Legislators Retirement Plan, who is in office on June 21, 2001, and who is in active contributing status to the applicable retirement plan
on June 21, 2001, and who has at least one hundred eighty (180) months of
service credit may purchase a combined maximum total of five (5) years of
retirement service credit that is not otherwise purchasable, by paying the
retirement system one hundred percent (100%) of the actuarial cost of the
service as determined by the board of trustees, based on assumptions used in
the most recent biennial evaluation. The member shall be entitled to the
service credit at the rate at which he qualifies under KRS 6.520. Service credit
awarded under this subsection shall be equivalent, for all purposes of the
Legislators Retirement Plan, to other service credit earned in the plan, except
that the service purchased under this subsection shall not be used in
determining a retirement allowance until the member has accrued at least two
hundred forty (240) months of service, excluding service purchased under this
subsection. If the member does not accrue at least two hundred forty (240)
months of service, excluding service purchased under this subsection, then
upon retirement, death, or written request following termination, the payment
shall be refunded. The member may pay by transfer, by lump sum, or by
increments as set forth in this section. The payments made under this section Page 4 of 4 shall be considered accumulated contributions of the member and shall not be
picked up by the employer under KRS 6.505(4). (d) A member of the Legislators Retirement Plan may purchase service credit under the provisions of this section by transferring funds through a direct
trustee-to-trustee transfer as permitted under the applicable sections of the
Internal Revenue Code and any regulations or rulings issued thereunder or
through a direct rollover as contemplated by and permitted under 26 U.S.C.
sec. 401(a)(31) and any regulations or rulings issued thereunder. Service credit
may also be purchased by a rollover of funds pursuant to and permitted under
the rules specified in 26 U.S.C. sec. 402(c) and 26 U.S.C. sec. 408(d)(3). The
Legislators Retirement Fund shall accept the transfer or rollover to the extent
permitted under the rules specified in the applicable provisions of the Internal
Revenue Code and any regulations and rulings issued thereunder. The amount
shall be credited to the individual member's contribution account and shall be
considered accumulated contributions of the member and shall not be picked
up by the employer under KRS 6.505(4). Effective: June 20, 2005
History: Amended 2005 Ky. Acts ch. 86, sec. 3, effective June 20, 2005. -- Amended 2003 Ky. Acts ch. 128, sec. 1, effective June 24, 2003. -- Amended 2002 Ky. Acts
ch. 90, sec. 4, effective July 15, 2002; and ch. 258, sec. 3, effective July 15, 2002. --
Amended 2001 Ky. Acts ch. 146, sec. 2, effective June 21, 2001. -- Amended 1998
Ky. Acts ch. 389, sec. 6, effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 266,
sec. 3, effective July 15, 1994. -- Amended 1990 Ky. Acts ch. 222, sec. 9, effective
July 13, 1990; and ch. 480, sec. 3, effective July 13, 1990. -- Amended 1982 Ky.
Acts ch. 458, sec. 16, effective April 15, 1982. -- Created 1980 Ky. Acts ch. 407,
sec. 14, effective July 1, 1980.