Kentucky Statutes 61.535 – Cessation of membership — Conditions — Forfeiture of retirement benefits
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(1) The membership of any person in the system shall cease:
(a) Upon withdrawal of his accumulated account balance at or any time after termination of employment, regardless of length of service;
(b) Upon disability retirement; (c) Upon service retirement; (d) Upon death;
(e) For persons hired prior to August 1, 2000, upon termination of employment with prejudice; or
(f) For persons hired on or after August 1, 2000, upon conviction of a felony relating to the person’s employment as provided in subsection (3) of this section.
(2) For purposes of KRS § 61.510 to KRS § 61.705 and 16.505 to 16.652, termination of employment with prejudice shall mean termination as the result of conviction of the member in a court of competent jurisdiction of embezzlement or larceny of public funds or property or malfeasance in office, or the forcing of a member to make restitution for any funds or property criminally taken by said member at the time of termination of employment.
(3) Notwithstanding any provision of law to the contrary, an employee hired on or after August 1, 2000, who participates in one (1) of the retirement systems administered by the Kentucky Retirement Systems and who is convicted, in any state or federal court of competent jurisdiction, of a felony related to his employment shall forfeit rights and benefits earned under the retirement system, except for the return of his accumulated contributions and interest credited on those contributions. 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 benefit shall be forfeited. The employer shall notify the retirement system when an employee is convicted under the provisions of this subsection.
Effective: April 1, 2021
History: Amended 2020 Ky. Acts ch. 79, sec. 21, effective April 1, 2021. — Amended
2013 Ky. Acts ch. 120, sec. 46, effective July 1, 2013. — Amended 2000 Ky. Acts ch.
273, sec. 1, effective July 14, 2000. — Amended 1988 Ky. Acts ch. 349, sec. 11, effective July 15, 1988. — Amended 1976 Ky. Acts ch. 321, sec. 40. — Amended
1972 Ky. Acts ch. 116, sec. 25. — Amended 1962 Ky. Acts ch. 58, sec. 4. — Amended 1960 Ky. Acts ch. 165, Part II, sec. 4. — Created 1956 Ky. Acts ch. 110, sec. 6.
(a) Upon withdrawal of his accumulated account balance at or any time after termination of employment, regardless of length of service;
Terms Used In Kentucky Statutes 61.535
- Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
- Conviction: A judgement of guilt against a criminal defendant.
- Embezzlement: In most states, embezzlement is defined as theft/larceny of assets (money or property) by a person in a position of trust or responsibility over those assets. Embezzlement typically occurs in the employment and corporate settings. Source: OCC
- Federal: refers to the United States. See Kentucky Statutes 446.010
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- public funds: means sums actually received in cash or negotiable instruments from all sources unless otherwise described by any state agency, state- owned corporation, university, department, cabinet, fiduciary for the benefit of any form of state organization, authority, board, bureau, interstate compact, commission, committee, conference, council, office, or any other form of organization whether or not the money has ever been paid into the Treasury and whether or not the money is still in the Treasury if the money is controlled by any form of state organization, except for those funds the management of which is to be reported to the Legislative Research Commission pursuant to KRS §. See Kentucky Statutes 446.010
- Restitution: The court-ordered payment of money by the defendant to the victim for damages caused by the criminal action.
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
(b) Upon disability retirement; (c) Upon service retirement; (d) Upon death;
(e) For persons hired prior to August 1, 2000, upon termination of employment with prejudice; or
(f) For persons hired on or after August 1, 2000, upon conviction of a felony relating to the person’s employment as provided in subsection (3) of this section.
(2) For purposes of KRS § 61.510 to KRS § 61.705 and 16.505 to 16.652, termination of employment with prejudice shall mean termination as the result of conviction of the member in a court of competent jurisdiction of embezzlement or larceny of public funds or property or malfeasance in office, or the forcing of a member to make restitution for any funds or property criminally taken by said member at the time of termination of employment.
(3) Notwithstanding any provision of law to the contrary, an employee hired on or after August 1, 2000, who participates in one (1) of the retirement systems administered by the Kentucky Retirement Systems and who is convicted, in any state or federal court of competent jurisdiction, of a felony related to his employment shall forfeit rights and benefits earned under the retirement system, except for the return of his accumulated contributions and interest credited on those contributions. 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 benefit shall be forfeited. The employer shall notify the retirement system when an employee is convicted under the provisions of this subsection.
Effective: April 1, 2021
History: Amended 2020 Ky. Acts ch. 79, sec. 21, effective April 1, 2021. — Amended
2013 Ky. Acts ch. 120, sec. 46, effective July 1, 2013. — Amended 2000 Ky. Acts ch.
273, sec. 1, effective July 14, 2000. — Amended 1988 Ky. Acts ch. 349, sec. 11, effective July 15, 1988. — Amended 1976 Ky. Acts ch. 321, sec. 40. — Amended
1972 Ky. Acts ch. 116, sec. 25. — Amended 1962 Ky. Acts ch. 58, sec. 4. — Amended 1960 Ky. Acts ch. 165, Part II, sec. 4. — Created 1956 Ky. Acts ch. 110, sec. 6.