161.568 Eligibility to participate in optional retirement plan -- Election to change from optional retirement plan to Kentucky Teachers' Retirement System. - Kentucky Statutes

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Page 1 of 3 161.568 Eligibility to participate in optional retirement plan -- Election to change from optional retirement plan to Kentucky Teachers' Retirement System. (1) Eligibility to participate in the optional retirement plan shall be determined by the board of regents of each of the state public postsecondary education institutions
identified in KRS 161.220(4)(b). The employees of these institutions of higher
education who are initially employed on or after the implementation date of the
optional retirement plan may make an election to participate in the optional
retirement plan within thirty (30) days after their employment date. This election
shall be irrevocable except as otherwise provided in this subsection. No member of
the Kentucky Teachers' Retirement System who terminates employment and is
subsequently reemployed by the same or another public postsecondary education
institution which participates in the Kentucky Teachers' Retirement System may be
eligible to elect to participate in the optional retirement plan unless the date of
reemployment is at least six (6) months after the date of termination. All elections
made under this subsection shall be in writing and shall be filed with the
appropriate officer of the employer institution. Persons who originally elected to
participate in the optional retirement plan may later change their elections only as
follows:
(a) Any person otherwise eligible for membership in the Kentucky Teachers' Retirement System may irrevocably elect one (1) time during his or her
lifetime to change his or her election and to prospectively participate in the
Kentucky Teachers' Retirement System. This election to change from the
optional retirement plan to Kentucky Teachers' Retirement System shall be
effective beginning on the first day of the first month immediately following
the date that written application for the election is received in the retirement
system's office on forms prescribed by the system. Any person exercising this
election shall not be entitled to purchase as service credit in the Kentucky
Teachers' Retirement System any prior service with his or her postsecondary
education institution employer; (b) Any person otherwise eligible for membership in the Kentucky Teachers' Retirement System who previously elected to participate in the optional
retirement plan may irrevocably elect one (1) time within his or her first six
(6) years and six (6) months of continuous service in any one (1) or more of
the institutions identified in KRS 161.220(4)(b), to change his or her election
and to prospectively participate in the Kentucky Teachers' Retirement System
and also become eligible to purchase as service credit his or her prior service
with his or her postsecondary education employer. This election to change
from the optional retirement plan to the Kentucky Teachers' Retirement
System shall be effective beginning on the first day of the first month
immediately following the date that written application for the election is
received in the retirement system's office on forms prescribed by the
retirement system. Persons electing to change from the optional retirement
plan to the Kentucky Teachers' Retirement System may purchase service
credit only for their prior years of service for a postsecondary education Page 2 of 3 institution identified in KRS 161.220(4)(b) during which they participated in
the optional retirement plan. The election to purchase prior service as service
credit shall be received in the retirement system's office on forms prescribed
by the retirement system within the six (6) year and six (6) month period
provided to make the election to begin participation in the Kentucky Teachers'
Retirement System. The cost of purchasing this service shall be calculated by
adding both the employer and member contributions that would have been
paid to the Kentucky Teachers' Retirement System had the individual
purchasing this service participated in the Kentucky Teachers' Retirement
System instead of the optional retirement plan, less the amount contributed to
the Kentucky Teachers' Retirement System by the postsecondary education
institution as provided by KRS 161.569(5), or KRS 161.569(5)(a)2. as it
existed on June 30, 2007. Interest at Kentucky Teachers' Retirement System's
actuarially assumed rate shall be paid on these net contributions by the person
electing to change to the Kentucky Teachers' Retirement System from the
optional retirement plan. These payments shall not be picked up as described
in KRS 161.540(2). Persons who elect to change from the optional retirement
plan to the Kentucky Teachers' Retirement System may elect to purchase as
service credit, beginning with the most recent years, any portion of their prior
years of service during which time they participated in the optional retirement
plan, or none of those years. Members may purchase service credit for prior
years of service by rolling over funds from their optional retirement plan
account as provided under KRS 161.5461, or by rolling over or transferring
other plan funds as permitted by the rules set forth in the Internal Revenue
Code, or by making an after-tax lump-sum cash payment; (c) Effective July 1, 2008, persons otherwise eligible for membership in the Kentucky Teachers' Retirement System may irrevocably elect one (1) time to
change their election and to prospectively participate in the Kentucky
Teachers' Retirement System and purchase service credit for their prior years
of service during which they participated in the optional retirement plan. This
election shall be filed in writing with the Kentucky Teachers' Retirement
System no later than December 31, 2008. Persons who change their election
prior to July 1, 2008, to prospectively participate in the Kentucky Teachers'
Retirement System may purchase service credit for their prior years of service
during which they participated in the optional retirement plan. The purchase
of prior years of service under this paragraph shall be subject to the same
conditions and purchase costs as described in paragraph (b) of this subsection,
except that the election to purchase service credit shall be on file with the
Kentucky Teachers' Retirement System no later than December 31, 2008; and (d) Persons electing to change to the Kentucky Teachers' Retirement System under paragraphs (a), (b), and (c) of this subsection shall be eligible to
participate, based upon their age and allowable service credit, in the disability,
survivorship, and medical insurance programs under the conditions and in the
degree as they exist on the date that they file their election with the retirement
system, but shall be subject to any changes to those programs from that date Page 3 of 3 forward, including any changes that may affect their eligibility for or degree of
participation in those programs. Prior service purchased as service credit as
permitted under paragraphs (b) and (c) of this subsection shall not be
considered for meeting eligibility requirements or determining the extent of
participation in these programs. Persons electing to change to the Kentucky
Teachers' Retirement System shall not be eligible for the survivorship or
disability programs based upon medical conditions that existed prior to the
filing of their elections. (2) Elections of eligible employees hired on or after the implementation date of the optional retirement plan at their employer institution shall be effective on the date
of their employment. If an eligible employee hired subsequent to the
implementation date at the employer institution fails to make the election provided
for in this section, the employee shall become a member of the regular retirement
plan of the Kentucky Teachers' Retirement System. Effective: April 7, 2008
History: Amended 2008 Ky. Acts ch. 11, sec. 2, effective April 7, 2008. -- Amended 2004 Ky. Acts ch. 121, sec. 25, effective July 1, 2004. -- Amended 1997 (1st Extra.
Sess.) Ky. Acts ch. 1, sec. 70, effective May 30, 1997. -- Amended 1996 Ky. Acts
ch. 253, sec. 2, effective July 15, 1996. -- Created 1994 Ky. Acts ch. 290, sec. 2,
effective July 15, 1994.