67A.500 Withdrawal from service prior to retirement -- Refunds -- Forfeitures -- Repayment upon reemployment. - Kentucky Statutes

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67A.500 Withdrawal from service prior to retirement -- Refunds -- Forfeitures -- Repayment upon reemployment. (1) Upon withdrawal from service prior to retirement, a member shall be entitled to receive a refund of the amount of contributions made by the member or picked up
by the urban-county government pursuant to KRS 67A.510(2) after the date of
establishment, without interest. Payments of picked up employee contributions shall
be subject to state and federal tax as appropriate. (2) Any member receiving a refund of contributions shall thereby ipso facto forfeit, waive, and relinquish all accrued rights and benefits in the system, including all
credited and creditable service. The board may, in its discretion, regardless of cause,
withhold payment of a refund for a period not to exceed six (6) months after receipt
of an application from a member. (3) Any member who has received a refund shall be considered a new member upon subsequent reemployment if such person qualifies for membership under KRS
67A.360 to 67A.690. Any member who is reemployed after withdrawing from
service and who received a refund of contributions shall, within ninety (90) days of
his reemployment or prior to retirement, whichever occurs first, make a repayment
to the system of the amount or amounts previously received as a refund, including
interest at the rate determined by the board to be the actual rate of return on
investments made by the board, but not less than three percent (3%) per annum,
from the dates of the refund to the date of repayment, compounded annually. Upon
the restoration of such refunds, such member shall have reinstated to his account all
credited service represented by the refunds of which repayment has been made.
Repayment of refunds by any member shall include all refunds received by a
member prior to the date of his last withdrawal from service, with interest, and shall
be made in a single lump sum payment. Repayments shall not be picked up by the
urban-county government. If repayment is not made within the specified time
period, the member shall have forever forfeited, waived, and relinquished the right
to have reinstated to his account the credited service represented by the refunds for
which repayment was not made, but shall not be precluded from purchasing service
credit as provided in KRS 67A.402. (4) Any member who has received, or who is entitled to receive, a refund, but who within six (6) months of becoming entitled to receive such refund, qualifies for
membership under the provisions of a fund in effect in another government, or city
of the second class, adopted pursuant to law, shall have the option of paying his
refund into such other fund, in which event he shall be deemed a member of such
other fund and his account therein shall be credited with all contributions, including
those picked up pursuant to KRS 67A.510(2), and service under his original fund. Effective: July 14, 2000
History: Amended 2000 Ky. Acts ch. 484, sec. 6, effective July 14, 2000. -- Amended 1982 Ky. Acts ch. 166, sec. 41, effective July 15, 1982. -- Created 1974 Ky. Acts
ch. 106, sec. 15, effective July 1, 1974.