KRS § 6.515 — KY Code / Title II / Chapter 6 / Section 6.515
6.515 Terms of service to qualify -- Military service credit acquisition for members who began participating before January 1, 2014 -- Special provisions for active members who began participating before January 1, 2014
Status: in_force

6.515 Terms of service to qualify -- Military service credit acquisition for members

who began participating before January 1, 2014 -- Special provisions for active

members who began participating before January 1, 2014.

(1) Service credit in the Legislators' Retirement Plan shall be acquired only by service

as a legislator after July 1, 1980, while a member of the plan, by transfer of credit as

provided in KRS 6.505, or by purchase or transfer of credit as provided in this

section.

(2) (a) 1. Any active member who began participating in the Legislators'

Retirement Plan prior to January 1, 2014, who has at least five (5) years

of service credit in the Legislators' Retirement Plan, 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 legislator in question under KRS

6.520. Service credit awarded under this subsection shall be equivalent,

for all purposes of the Legislators' Retirement Plan, to other service

credit earned in the plan.

2. Any active member who began participating in the Legislators'

Retirement Plan prior to January 1, 2014, who has at least five (5) years

of service credit in the Legislators' 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 the

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 legislator in question under KRS 6.520.

Service credit awarded as provided in this subsection shall be

equivalent, for all purposes of the Legislators' 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 by

transfer, if authorized under subsection (7)(d) of this section, or in a

lump-sum payment or by installment payments, as set forth in paragraph

(b) of this subsection. The payment shall not be picked up by the

employer as provided in KRS 6.505(4).

(b) The member, if the member began participating in the Legislators' 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 6.505(4).

(3) In the event of divorce, rights to benefits shall be considered marital property

subject to the provisions of KRS 403.190.

(4) A member who began participating in the Legislators' Retirement Plan prior to

January 1, 2014, who has qualified for benefits under KRS 6.525(1) may transfer to

the Legislators' Retirement Plan up to ten (10) years of service credit which he has

earned in a retirement system administered by Kentucky Retirement Systems. If the

member elects to transfer his service credit, the system from which the transfer is

made shall transfer to the legislators' 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 date of transfer at the actuarially

assumed interest rate of the system 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 6.520, when he pays the total difference between the amount of

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

determined by the actuary for the Legislators' Retirement Plan. The member may

pay by transfer, if authorized under subsection (7)(d) of this section, by lump sum,

or by increments, as provided for in 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 6.505(4).

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

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

under KRS 6.525 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 6.520. Service credit awarded under this subsection shall be

equivalent, for all purposes of the Legislators Retirement Plan, to other

service credit earned in the plan. The member may pay by transfer, by lump

sum, or by increments as set forth in 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 6.505(4).

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

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

under KRS 6.525, 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 6.520. Service credit awarded under this

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

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

transfer, by lump sum, or by increments as set forth in 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 6.505(4).

(c) Any member who began participating in the Legislators 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 of 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 member shall be entitled to the service credit at the rate at

which he qualifies under KRS 6.520. Service credit awarded under this

subsection shall be equivalent, for all purposes of the Legislators 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, by lump sum, or by increments as set forth

in 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 6.505(4).

(d) A member who began participating in the Legislators Retirement Plan prior to

January 1, 2014, may purchase service credit under the provisions of this

section by transferring funds through a direct trustee-to-trustee transfer as

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) and any

regulations or rulings issued thereunder. 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 Legislators 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 account and shall be considered accumulated

contributions of the member and shall not be picked up by the employer under

KRS 6.505(4).