161.470 Membership -- Forfeiture of service credit -- Termination of membership -- Forfeiture of benefits -- Reinstatement -- Payment of accumulated contributions. - Kentucky Statutes

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161.470 Membership -- Forfeiture of service credit -- Termination of membership -- Forfeiture of benefits -- Reinstatement -- Payment of accumulated
contributions. (1) The membership of the retirement system shall consist of all new members, all present teachers, and all persons participating under the retirement system as of
June 30, 1986, except as provided in Acts 1938 (1st Ex. Sess.), Ch. 1, paragraph 29.
The board of trustees of the Teachers' Retirement System shall be responsible for
final determination of membership eligibility and may direct employers to take
whatever action that may be necessary to correct any error relating to membership. (2) Service credit shall be forfeited upon withdrawal. If a member again enters service it shall be as a new member, except that any teacher who withdraws by claiming his
deposits may repay the system the amount withdrawn plus interest and reestablish
his service credit as provided in subsection (3) of this section. (3) Effective July 1, 1988, and thereafter, an active contributing member of the retirement system with contributing service equal to one (1) year may regain service
credit by depositing in the teachers' savings fund the amount withdrawn with
interest at the rate to be set by the board of trustees, and computed from the first of
the month of withdrawal and including the month of redeposit. (4) Effective July 1, 1974, any active contributing member with at least two (2) years of contributing service credit who declined membership as provided in Acts 1938 (1st
Ex. Sess.), Ch. 1, paragraph 29, may secure service credit for prior service, and for
any subsequent service prior to date of membership, by depositing in the teachers'
savings fund contributions for each year of subsequent service prior to date of
membership, with interest at the rate of eight percent (8%) compounded annually to
the date of deposit. (5) Membership in the retirement system shall be terminated: (a) By retirement for service;
(b) By death;
(c) By withdrawal of the member's accumulated contributions;
(d) When a member, having less than five (5) years of Kentucky service is absent from service for more than three (3) consecutive years; or (e) For persons hired on or after August 1, 2000, when a member is convicted, in any state or federal court of competent jurisdiction, of a felony related to his
employment as provided in subparagraphs 1. and 2. of this paragraph.
1. Notwithstanding any provision of law to the contrary, a member hired
on or after August 1, 2000, who is convicted, in any state or federal
court of competent jurisdiction, of a felony related to his employment
shall forfeit rights and benefits earned under the retirement system,
except for the return of his accumulated contributions and interest
credited on those contributions. 2. 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 benefits shall be forfeited. Except for paragraph (e) of this subsection, upon termination of member accounts
under this subsection, funds in the account shall be transferred to the guarantee
fund. Inactive members may apply for refunds of these funds at any time. The
terminated service shall be reinstated, if not withdrawn by the member, in the event
that the member returns to active contributing service. (6) In case of withdrawal from service prior to eligibility for retirement, the board of trustees shall on request of the member return all of his accumulated contributions
with regular interest, including any payments made by the member to the state
accumulation fund, but the member shall have no claim on any contributions made
by the state with a view to his retirement or to contributions made to the medical
insurance fund. If the member is eligible for an immediate service retirement
allowance as provided in KRS 161.600, no withdrawal and refund shall be
permitted, unless the allowance would prohibit the member from qualifying for
Social Security benefits or the member elects to withdraw part or all of his service
for the purpose of obtaining credit in another retirement plan. Requests for refund of
contributions by the member must be filed on forms prescribed by the Teachers'
Retirement System and the employer shall be financially responsible for all
information that is certified on the prescribed form. A member may not withdraw
any part of his or her contributions to the retirement system except as provided by
this subsection. (7) Except as provided in KRS 161.520 and 161.525, in case of death prior to retirement, the board of trustees shall pay to the estate of the deceased member,
unless a beneficiary was otherwise applicably designated by the deceased member,
then to the beneficiary, all of his accumulated contributions, with regular interest,
including any payments made by the member to the state accumulation fund, but the
estate or beneficiary shall have no claim on any contributions made by the state with
a view to the retirement of the member or to contributions made to the medical
insurance fund. (8) Any active contributing member of the Kentucky Employees Retirement System, the County Employees Retirement System, the State Police Retirement System, or
the Judicial Retirement System may use service, under that retirement system for
the purpose of meeting the service requirement of subsections (3) and (4) of this
section. Effective: July 1, 2002
History: Amended 2002 Ky. Acts ch. 275, sec. 11, effective July 1, 2002. -- Amended 2000 Ky. Acts ch. 273, sec. 2, effective July 14, 2000. -- Amended 1990 Ky. Acts
ch. 442, sec. 4, effective July 1, 1990; and ch. 476, Pt. V, sec. 503, effective July 13,
1990. -- Amended 1988 Ky. Acts ch. 363, sec. 5, effective July 1, 1984. -- Amended
1982 Ky. Acts ch. 326, sec. 6, effective July 1, 1982. -- Amended 1980 Ky. Acts
ch. 206, sec. 2, effective July 1, 1980. -- Amended 1978 Ky. Acts ch. 152, sec. 5,
effective March 28, 1978. -- Amended 1976 Ky. Acts ch. 351, sec. 5, effective July
1, 1976. -- Amended 1974 Ky. Acts ch. 395, sec. 7. -- Amended 1972 Ky. Acts
ch. 82, sec. 9. -- Amended 1968 Ky. Acts ch. 136, sec. 4. -- Amended 1964 Ky. Acts
ch. 43, sec. 7. -- Amended 1962 Ky. Acts ch. 64, sec. 5. -- Amended 1960 Ky. Acts
ch. 44, sec. 8. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942,
from Ky. Stat. sec. 4506b-27. Legislative Research Commission Note (7/13/90). The Act amending this section prevails over the repeal and reenactment in House Bill 940, Acts Ch. 476, pursuant to
Section 653(1) of Acts Ch. 476.