Kentucky Statutes 161.615 – Limited defined contribution plan — Purpose — Administration — Eligibility — Payments
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(1) The board of trustees is authorized to implement a limited defined contribution plan for the sole purpose of providing retirement allowance payments for retired members who have been approved by the retirement system for full-time reemployment as provided in KRS § 161.605.
(2) The defined contribution plan shall be administered separately from the regular benefits provided for members of the retirement system, except that the contributions to the plan shall be invested in the same manner as other contributions to the retirement system.
(3) The provisions of this section apply only to those retired members who were permitted to return to work under the critical shortage provisions of KRS
161.605(7) as they existed on June 30, 2002. The provisions of this section shall not apply to any retired member returning to work on or after July 1, 2002.
(4) Separate member accounts shall be maintained for participants in this plan which shall reflect the annual contributions made to the participant’s account based on the rates and interest levels specified in KRS § 161.605.
(5) When the retiree’s reemployment terminates, the total contributions and accrued interest in the participant’s account will be paid in a lump-sum payment or on an actuarial straight life monthly basis to the retiree. If the member dies prior to making application for a retirement allowance under this plan, the beneficiary designated by the participant for this plan shall receive a refund of the funds in the account. If there is a remaining balance in the account at the death of the participant after retirement from this plan, it shall be paid to the beneficiary designated by the participant for this benefit.
(6) Retired members shall be eligible to receive their retirement annuity when approved for reemployment and participation in this plan. Service as a reemployed retiree may not be used in any manner for credit under the regular retirement benefit plans provided by the retirement system.
Effective: January 1, 2022
History: Amended 2021 Ky. Acts ch. 157, sec. 34, effective January 1, 2022. — Amended 2018 Ky. Acts ch. 107, sec. 72, effective July 14, 2018. — Amended 2002
Ky. Acts ch. 275, sec. 27, effective July 1, 2002. — Created 2000 Ky. Acts ch. 498, sec. 2, effective July 1, 2000.
Legislative Research Commission Note (12/13/2018). On December 13, 2018, the
Kentucky Supreme Court ruled that the passage of 2018 SB 151 (2018 Ky. Acts ch.
107), did not comply with the three-readings rule of Kentucky Constitution Section
46 and that the legislation is, therefore, constitutionally invalid and declared void. That ruling applies to changes made to this statute in that Act.
(2) The defined contribution plan shall be administered separately from the regular benefits provided for members of the retirement system, except that the contributions to the plan shall be invested in the same manner as other contributions to the retirement system.
Terms Used In Kentucky Statutes 161.615
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Statute: A law passed by a legislature.
(3) The provisions of this section apply only to those retired members who were permitted to return to work under the critical shortage provisions of KRS
161.605(7) as they existed on June 30, 2002. The provisions of this section shall not apply to any retired member returning to work on or after July 1, 2002.
(4) Separate member accounts shall be maintained for participants in this plan which shall reflect the annual contributions made to the participant’s account based on the rates and interest levels specified in KRS § 161.605.
(5) When the retiree’s reemployment terminates, the total contributions and accrued interest in the participant’s account will be paid in a lump-sum payment or on an actuarial straight life monthly basis to the retiree. If the member dies prior to making application for a retirement allowance under this plan, the beneficiary designated by the participant for this plan shall receive a refund of the funds in the account. If there is a remaining balance in the account at the death of the participant after retirement from this plan, it shall be paid to the beneficiary designated by the participant for this benefit.
(6) Retired members shall be eligible to receive their retirement annuity when approved for reemployment and participation in this plan. Service as a reemployed retiree may not be used in any manner for credit under the regular retirement benefit plans provided by the retirement system.
Effective: January 1, 2022
History: Amended 2021 Ky. Acts ch. 157, sec. 34, effective January 1, 2022. — Amended 2018 Ky. Acts ch. 107, sec. 72, effective July 14, 2018. — Amended 2002
Ky. Acts ch. 275, sec. 27, effective July 1, 2002. — Created 2000 Ky. Acts ch. 498, sec. 2, effective July 1, 2000.
Legislative Research Commission Note (12/13/2018). On December 13, 2018, the
Kentucky Supreme Court ruled that the passage of 2018 SB 151 (2018 Ky. Acts ch.
107), did not comply with the three-readings rule of Kentucky Constitution Section
46 and that the legislation is, therefore, constitutionally invalid and declared void. That ruling applies to changes made to this statute in that Act.