KRS § 21.370 — KY Code / Title IV / Chapter 21 / Section 21.370
21.370 Term of service to qualify if member began participating before January 1, 2014 -- Transfer of service credit to Judicial Retirement Plan -- Purchase of service credit for service as police judge and for military service -- Special provisions for active members
Status: in_force

21.370 Term of service to qualify if member began participating before January 1,

2014 -- Transfer of service credit to Judicial Retirement Plan -- Purchase of

service credit for service as police judge and for military service -- Special

provisions for active members.

(1) (a) Except as provided in subsection (2) of KRS 21.410 and in subsection (2) of

KRS 21.420, no benefits shall be payable under KRS 21.350 to 21.480 to any

member who began participating in the Judicial Retirement Plan prior to

January 1, 2014, or to his surviving spouse, unless he has completed at least

eight (8) years of service, including service before becoming a member.

(b) No surviving spouse of a retired member shall be entitled to any benefits

unless the person was the spouse of the member at the time he retired.

(2) A member who began participating in the Judicial Retirement Plan prior to January

1, 2014, who has qualified for benefits under this section may transfer to the

Judicial Retirement Plan up to ten (10) years of service credit which he has earned

in a retirement system administered by Kentucky Retirement Systems, and he may

transfer to the Judicial Retirement Plan up to ten (10) years of service credit which

he has earned in the Kentucky Legislators' Retirement Plan. If the member elects to

transfer his service credit, the system or plan from which the transfer is made shall

transfer to the judicial 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 the date of transfer at the actuarially assumed

interest rate of the system or plan 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 21.400, when he pays the total difference between the amount

of the funds transferred and the cost of the credit to the Judicial Retirement Plan, as

determined by the actuary for the Judicial Retirement Plan. The member may pay by

transfer, if authorized under subsection (5)(d) of this section, or by lump sum or

increments as set forth in subsection (4)(b) of 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 21.360(6).

(3) Any active member who began participating in the Judicial Retirement Plan prior to

January 1, 2014, who is vested in the Judicial Retirement Plan under subsection (1)

of this section or KRS 21.375, shall receive service credit for a maximum of four

(4) years for his period of service as a city police judge for a city within the

Commonwealth of Kentucky, if the service was performed prior to the first Monday

in January, 1978, and 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 of the city for which the service was performed. The

service credit shall be awarded and the cost shall be determined in conformity with

the rate which applies to the member in question under KRS 21.400. Service credit

awarded under this subsection shall be equivalent, for all purposes of the Judicial

Retirement Plan, to other service credit earned in the plan. 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 21.360(6).

(4) (a) 1. Any active member who began participating in the Judicial Retirement

Plan prior to January 1, 2014, who is vested in the Judicial Retirement

Plan under subsection (1) of this section or KRS 21.375, 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 member in

question under KRS 21.400. Service credit awarded under this

subsection shall be equivalent, for all purposes of the Judicial

Retirement Plan, to other service credit earned in the plan.

2. Any active member who began participating in the Judicial Retirement

Plan prior to January 1, 2014, who is vested in the Judicial 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 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 member in question as

provided in KRS 21.400. Service credit awarded under this subsection

shall be equivalent, for all purposes of the Judicial 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 in a

transfer, if authorized under subsection (5)(d) of this section, or by a

lump-sum payment or installment payments. The payment shall not be

picked up by the employer as provided in KRS 21.360(6).

(b) The member, if the member began participating in the Judicial Retirement

Plan prior to January 1, 2014, 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 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 21.360(6).

(5) (a) Any active member who began participating in the Judicial Retirement Plan

prior to January 1, 2014, who is vested in the Judicial Retirement Plan under

subsection (1) of this section or KRS 21.375 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

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 21.400. Service credit awarded under this

subsection shall be equivalent, for all purposes of the Judicial Retirement

Plan, to other service credit earned in the plan. The member may pay by

transfer as set forth in paragraph (d) of this subsection, or by lump sum or

increments as set forth in subsection (4)(b) of 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 21.360(6).

(b) Any active member who began participating in the Judicial Retirement Plan

prior to January 1, 2014, who is vested in the Judicial Retirement Plan under

subsection (1) of this section or KRS 21.375 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 21.400. Service credit awarded

under this subsection shall be equivalent, for all purposes of the Judicial

Retirement Plan, to other service credit earned in the plan. The member may

pay by transfer as set forth in paragraph (d) of this subsection, or by lump sum

or increments as set forth in subsection (4)(b) of 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 21.360(6).

(c) Any member who began participating in the Judicial Retirement Plan prior to

January 1, 2014, who was in office on June 21, 2001, and who was 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 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 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 21.400. Service credit awarded under this subsection shall be

equivalent, for all purposes of the Judicial 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 as set forth in paragraph (d) of this subsection, or by lump

sum or increments as set forth in subsection (4)(b) of 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 21.360(6).

(d) A member of the Judicial Retirement Plan may purchase service credit under

the provisions of this section by transferring funds through a direct trustee-to-

trustee transfer 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). 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 Judicial 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 21.360(6).