KRS § 61.625 — KY Code / Title VIII / Chapter 61 / Section 61.625
61.625 Refund of account balance or contributions
Status: in_force

61.625 Refund of account balance or contributions.

(1) (a) Prior to the member's effective retirement date, a member if living, or if not

living, his or her designated beneficiary, shall have the right to request a

refund of his or her accumulated account balance if the member's employment

has been terminated and the member is not participating in the same system.

(b) Upon the death of a member occurring on or after his or her effective

retirement date, the member's beneficiary shall have the right to request a

refund of the member's accumulated contributions, reduced by the amount of

any retirement allowances previously received.

(c) If a member receives a refund of his or her accumulated account balance in

error while the member is employed or participating in the same system from

which the refund was issued in error:

1. The Authority shall notify the member;

2. The member shall repay the system the full amount of his or her

refunded accumulated account balance by lump sum or by incremental

payments made under an incremental payment agreement with the

Authority within twelve (12) months of the date the Authority sent the

notice; and

3. Upon full repayment of the accumulated account balance to the system,

the Authority shall reinstate the member's previous membership date

and associated service credit and take all other actions necessary to

correct the member's records to reflect the reinstated membership date in

accordance with KRS 61.685.

(2) Payments made under this section shall be in lieu of any other benefits due for the

period of service under any of the provisions of KRS 16.505 to 16.652, 61.510 to

61.705, and 78.510 to 78.852, unless the period of service is regained as provided

under KRS 61.552. Payments of taxable distributions made pursuant to this section

shall be subject to state and federal tax as appropriate.

(3) A refund of contributions of members whose benefits have been terminated

pursuant to KRS 6.696 shall be governed by that section.

(4) A refund of contributions to members whose benefits have been terminated

pursuant to KRS 61.535(3) shall be governed by the provisions of that subsection.

(5) If a member receives a refund of his or her accumulated account balance under

subsection (1) of this section, but is later reinstated without loss of pay by order of

the Personnel Board under KRS 18A.095, by order of the Kentucky Commission on

Human Rights, or by court order:

(a) The member shall repay the system the full amount of his or her refunded

accumulated account balance by lump sum or by incremental payments made

under an incremental payment agreement with the Authority within twelve

(12) months of the date of the final order by the Personnel Board, the

Kentucky Commission on Human Rights, or the court;

(b) Upon full repayment of the accumulated account balance to the system, the

Authority shall reinstate the member's previous membership date and

associated service credit; and

(c) A member's failure to pay the full amount of his or her refunded accumulated

account balance as required under this subsection shall be treated as an

overpayment of benefits under KRS 61.685.