Kentucky Administrative Regulations › Title 102 - TEACHERS' RETIREMENT SYSTEM › Chapter 1 - General Rules › Section 102 KAR 1:280 - Service credit required for member to qualify for three (3) percent retirement factor

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				161.620
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				161.310 requires the Board of Trustees of the
				Teachers' Retirement System of the State of Kentucky to promulgate
				administrative regulations for the administration of the funds of the
				retirement system and for the transaction of business.
				KRS
				161.620 authorizes the Board of Trustees to
				approve a three (3) percent retirement factor for years or fractional years of
				service in excess of thirty (30) years and establish conditions of eligibility
				regarding the type of service credit required for a member to qualify for this
				three (3) percent retirement factor.
Section
			 1. The three (3) percent retirement factor, subject to the
			 conditions established in Sections 2 through 5 of this administrative
			 regulation, shall be approved for any member who has accredited to his or her
			 account with the Teachers' Retirement System of the State of Kentucky a minimum
			 of five (5) years of service credit for either time actually served in a
			 position covered by the Teachers' Retirement System of the State of Kentucky
			 from which contributions were made under
			 KRS
			 161.540 and
			 161.550,
			 or service credit purchased under
			 KRS
			 161.470(2),
			 161.545,
			 102
			 KAR 1:036, or
			 102
			 KAR 1:038. Service credit purchases, except as
			 provided in this section, shall not be considered in determining whether the
			 member has accumulated the minimum five (5) years of service credit.
Section 2. The three (3) percent retirement
			 factor shall be applied only to service accredited to a member's account as a
			 result of either time actually served in a position covered by the Teachers'
			 Retirement System of the state of Kentucky from which contributions were made
			 under
			 KRS
			 161.540 and
			 161.550,
			 or service credit purchased under
			 KRS
			 161.545,
			 102
			 KAR 1:036, or
			 102
			 KAR 1:038, for years or fractional years of service
			 that occur after the member has accumulated thirty (30) years of service credit
			 as calculated under Section 3 of this administrative regulation. Service credit
			 purchases, other than as provided in this section, shall not be subject to the
			 application of the three (3) percent retirement factor. Notwithstanding any
			 regulatory provision to the contrary, service credit earned as a result of
			 employment in a position subject to Social Security shall not be subject to the
			 application of the three (3) percent retirement factor.
Section 3. The service credit listed in
			 subsections (1), (2), (3), and (4) of this section shall be considered, in the
			 chronological order in which it was earned, for the purpose of calculating
			 whether a member has accumulated thirty (30) years of service credit as a
			 prerequisite to qualifying for the three (3) percent retirement factor, but
			 shall not be subject to application of the three (3) percent retirement factor.
			 Both full years and fractional years of service credit listed in subsections
			 (1), (2), (3), and (4) of this section shall be considered. Other service
			 credit shall not be considered for this purpose.
(1) The first thirty (30) or less years of
			 service earned by the member as a result of either time actually served in a
			 position covered by the Teachers' Retirement System of the State of Kentucky
			 from which contributions were made under
			 KRS
			 161.540 and
			 161.550,
			 or service credit purchased under
			 KRS
			 161.470(2),
			 161.545,
			 102
			 KAR 1:036, or
			 102
			 KAR 1:038, excluding service credit purchases other
			 than as provided by this section.
(2) Service rendered in the uniformed
			 services of the Armed Forces of the United States, including the commissioned
			 corps of the Public Health Service, the United States Military Reserves and the
			 Kentucky National Guard, purchased by the member under
			 KRS
			 161.507, subject to preemption by the
			 provisions of the Uniformed Services Employment and Reemployment Rights Act of
			 1994.
(3) Service credit purchased
			 under
			 KRS
			 161.515 as a result of out-of-state teaching
			 and peace corps service, under
			 KRS
			 161.547 as a result of legislative service,
			 under
			 KRS
			 161.548 as a result of regional community
			 mental health and mental retardation service program service, and under
			 KRS
			 161.549 as a result of federal head start
			 agency service.
(4) Service credit
			 in the Legislators' Retirement Plan, State Police Retirement System, Kentucky
			 Employees Retirement System, and County Employees Retirement System that is
			 earned as a result of contributions deducted from the member's salary while
			 employed in a position covered by one (1) of these state administered
			 retirement systems and that is recognized pursuant to the provisions of
			 KRS
			 161.600(3). Service credit
			 purchases under any one (1) of these state administered retirement systems
			 shall not be considered, except as follows:
(a) The purchase of military service,
			 including the commissioned corps of the Public Health Service, the United
			 States Military Reserves and the Kentucky National Guard, that is credited to
			 the member's account by each respective state administered retirement system
			 shall be considered to the extent that this service, added to the service
			 described in subsection (2) of this section, does not exceed six (6)
			 years.
(b) The purchase of service
			 credit in another state administered retirement system to the extent that it
			 represents services provided and time actually served in a position of
			 employment under a federal, state, or local government agency.