KRS § 161.470 — KY Code / Title XIII / Chapter 161 / Section 161.470
161.470 Membership -- Forfeiture of service credit -- Termination of membership -- Forfeiture of benefits -- Reinstatement -- Payment of accumulated account balance
Status: in_force

161.470 Membership -- Forfeiture of service credit -- Termination of membership -

- Forfeiture of benefits -- Reinstatement -- Payment of accumulated account

balance.

(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

or her deposits may repay the system the amount withdrawn plus interest and

reestablish his or her 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credit by depositing in the teachers' savings fund the amount withdrawn with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 account balance;

(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 whose membership begins 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 or her employment as provided in subparagraphs 1. and

2. of this paragraph.

1. Notwithstanding any provision of law to the contrary, a person whose

membership begins on or after August 1, 2000, who is convicted, in any

state or federal court of competent jurisdiction, of a felony related to his

or her employment shall forfeit rights and benefits earned under the

retirement system, except for the return of his or her accumulated

contributions and interest credited on those contributions through the

date of conviction.

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 or her accumulated account

balance, 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 or

employer with a view to his or her retirement, except as provided by KRS 161.635

and 161.636, or to contributions made to the medical insurance fund. A member

who is withdrawing from service prior to retirement eligibility shall be entitled to a

refund following sixty (60) days after his or her last day of employment. 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 or her service for the purpose of

obtaining service 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 accumulated account balance in 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 or her accumulated account balance, 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 or employer

with a view to the retirement of the member, except as provided by KRS 161.635

and 161.636, 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.