Kentucky Administrative Regulations › Title 102 - TEACHERS' RETIREMENT SYSTEM › Chapter 1 - General Rules › Section 102 KAR 1:230 - Limitations on benefits

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				161.611, 26 C.F.R. 1.415,
				26 U.S.C. 125,
				132(f)(4),
				402,
				414,
				415,
				417,
				457,
				3401,
				6041,
				6051,
				6052
NECESSITY, FUNCTION AND CONFORMITY:
				KRS
				161.310(1) requires the
				board of trustees to promulgate administrative regulations for the
				administration of the funds of the retirement system and for the transaction of
				business.
				KRS
				161.716 requires the board of trustees to
				promulgate administrative regulations as are necessary to remove any conflicts
				with federal laws and to protect the interests of the members and survivors of
				members of the retirement system. This administrative regulation establishes
				the limitations on benefits required by
				26
				U.S.C. 415.
Section 1. Definitions.
(1) "415(b) limit" means the limitation on
			 benefits established by
			 26
			 U.S.C. 415(b).
(2) "415(c) limit" means the limitation on
			 annual additions established by
			 26
			 U.S.C. 415(c).
(3) "Annual benefit" means, for purposes of
			 the 415(b) limit, a benefit payable annually in the form of a straight life
			 annuity (without ancillary benefits) without regard to the benefit attributable
			 to after-tax employee contributions (except pursuant to
			 26
			 U.S.C. 415(n)) and to
			 rollover contributions (as defined in
			 26
			 U.S.C. 415(b)(2)(A)) . The
			 "benefit attributable" is determined in accordance with 26 C.F.R.
			 1.415(b).
(4) "Defined benefit
			 dollar limitation" means $160,000, as adjusted, effective January 1 each year,
			 in the manner established by the Secretary of the United States Treasury
			 pursuant to
			 26
			 U.S.C. 415(d), and payable
			 in the form of a straight life annuity. A limitation as adjusted under
			 26
			 U.S.C. 415(d) applies to
			 limitation years for which the adjustment applies.
(5) "Limitation year" means the calendar
			 year.
(6) "Nonqualified service
			 credit" means, effective for permissive service credit contributions made in
			 limitation years beginning after December 31, 1997, permissive service credit
			 other than that allowed with respect to:
(a)
			 Service as an employee of the Government of the United States or any state,
			 agency, or political subdivision thereof (other than military service or
			 service for credit that was obtained as a result of a repayment described in
			 26
			 U.S.C. 415(k)(3);
(b) Service as an employee, other than as an
			 employee described in paragraph (a) of this subsection, of an education
			 organization described in
			 26 U.S.C.
			 170(b)(1)(A)(ii) that is a
			 public, private, or sectarian school that provides elementary education or
			 secondary education through grade twelve (12), or a comparable level of
			 education as determined pursuant to the applicable law of the jurisdiction in
			 which the service was performed;
(c) Service as an employee of an association
			 of employees described in paragraph (a) of this subsection; or
(d) Military service, other than qualified
			 military service pursuant to
			 26 U.S.C.
			 414(u), recognized by the
			 retirement system.