Title 102 | Chapter 001 | Regulation 361
SUPERSEDED
This document is no longer current.
FINANCE AND ADMINISTRATION CABINET
Teachers’ Retirement System
(New Administrative Regulation)
102 KAR 1:361.Disability retirement for TRS 4 members with less than five (5) years of service.
Section 1.
For TRS 4 members who have less than five (5) years of creditable Kentucky service, the disability retirement benefits, including all eligibility and other conditions, shall be those disability retirement benefits for non-hazardous positions provided under KRS 61.621 (the Fred Capps Memorial Act).Section 2.
The members described in Section 1 shall not be eligible for benefits provided by KRS 161.661 or 161.663.Section 3.
Administrative Provisions.(1)
An application for duty-related injury disability benefits shall be filed on the TRS 4 Disability Retirement Application – Less Than Five Years of Service (application) and shall include:(a)
A photocopy of the member's certified birth certificate;(b)
A photocopy of the member's signed Social Security card;(c)
A voided or cancelled check from the institution where monthly disbursements shall be electronically transmitted;(d)
The Physician's Disability Evaluation Report and supporting documentation regarding the member's duty-related injury;(e)
The Applicant's Disability Statement; and(f)
If the duty-related injury was the result of external violence, a copy of any incident or police report filed at the time of the incident.(2)
TRS shall submit the application and supporting documentation to the medical review committee for evaluation and written disposition as required by KRS 161.661(14).(3)
If the application is approved, payment of these disability benefits shall be effective on the applicable date set forth in KRS 161.661(11).Section 4.
A member described in Section 1 of this regulation shall be subject to providing ongoing and current medical reports upon request by TRS to confirm that the conditions for disability benefits eligibility remain in place.Section 5.
Incorporation by Reference.(1)
The following material is incorporated by reference:(a)
"TRS 4 Disability Retirement Application-Less Than Five Years of Service", September 2022;(b)
"Physician's Disability Evaluation Report", September 2022; and(c)
"Applicant's Disability Statement", September 2022.(2)
This material may be inspected, copied or obtained, subject to applicable copyright law, at Teachers' Retirement System, 479 Versailles Road, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 5 p.m.BRENDA MCGOWN, Chair
APPROVED BY AGENCY: September 14, 2022
FILED WITH LRC: September 22, 2022 at 1:50 p.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held on Wednesday, 21 December 2022, at 9:00 a.m. Eastern Time at the offices of the retirement system at 479 Versailles Road, Frankfort, Kentucky. Individuals interested in being heard at this hearing shall notify this agency in writing by Wednesday, 14 December 2022, five (5) workdays prior to the hearing of their intent to attend. If no notification of intent to attend the hearing is received by this date, the hearing may be cancelled. This hearing is open to the public. Any person who wishes to be heard will be given the opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation until the end of the calendar day on Saturday, 31 December 2022. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.
CONTACT PERSON: Robert B. Barnes, Deputy Executive Secretary of Operations and General Counsel, Kentucky Teachers' Retirement System, 479 Versailles Road, Frankfort, Kentucky 40601, phone (502) 848-8508, fax (502) 573-0199, or email Beau.Barnes@trs.ky.gov.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Robert B. Barnes
(1) Provide a brief summary of:
(a) What this administrative regulation does:
Establishes that new members who enter the retirement system after January 1, 2022, who have less than five (5) years of service credit, shall be provided disability retirement.
(b) The necessity of this administrative regulation:
This administrative regulation shall provide duty-related injury disability benefits for new members. The potential exists for a member to become disabled and be entitled to benefits that would be ongoing.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
This administrative regulation conforms to KRS 161.661 as amended by HB 258 (2021 RS) which requires the board to promulgate an administrative regulation to provide disability retirement for new TRS 4 members.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
This administrative regulation will identify for members entering the retirement system after January 1, 2022, who have less than five (5) years of service credit that disability retirement shall be provided to them.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
NA
(b) The necessity of the amendment to this administrative regulation:
NA
(c) How the amendment conforms to the content of the authorizing statutes:
NA
(d) How the amendment will assist in the effective administration of the statutes:
NA
(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
TRS Members who enter the retirement system after January 1, 2022, who have less than five (5) years of service credit and become disabled. TRS has had less than twenty (20) individuals become disabled for at least ten (10) years.
(4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment:
New members will file an application for disability benefits un-der KRS 61.621(2).
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
The cost to the new members is part of the retirement contribution they make to TRS.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
New members who sustain a duty-related injury after January 1, 2022, will be eligible to file for, and receive, duty-related injury disability retirement.
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
There is no cost to implement this regulation.
(b) On a continuing basis:
There is no continuing cost.
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
Administrative expenses of the retirement system are paid by trust and agency funds.
(7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
There is no increase in fees or funding required.
(8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
This regulation does not establish any fees or directly or indirectly increase any fees.
(9) TIERING: Is tiering applied?
Tiering is not applied, as all members are treated the same.
FISCAL NOTE
(1) What units, parts, or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation?
Teachers' Retirement System.
(2) Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation.
KRS 161.310, 161.661
(3) Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.
None.
(a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year?
None.
(b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years?
None.
(c) How much will it cost to administer this program for the first year?
Administrative costs will be dependent upon the number of applications processed and cannot be quantified at this time. Given the very small number of members that will likely be impacted, however, administrative costs will be very low.
(d) How much will it cost to administer this program for subsequent years?
Administrative costs will be dependent upon the number of applications processed and cannot be quantified at this time. Given the very small number of members that will likely be impacted, however, administrative costs will be very low.
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Revenues (+/-):
N/A
Expenditures (+/-):
N/A
Other Explanation:
(4) Estimate the effect of this administrative regulation on the expenditures and cost savings of the regulated entities for the first full year the administrative regulation is to be in effect.
(4) Estimate the effect of this administrative regulation on the expenditures and cost savings of regulated entities for the first full year the administrative regulation is to be in effect.
(a) How much cost savings will this administrative regulation generate for the regulated entities for the first year?
This regulation provides disability retirement provisions for new tier members as required by law and does not result in any cost savings.
(b) How much cost savings will this administrative regulation generate for the regulated entities for subsequent years?
This regulation provides disability retirement provisions for new tier members as required by law and does not result in any cost savings.
(c) How much will it cost the regulated entities for the first year?
This regulation provides disability retirement provisions for new tier members as required by law and does not result in any cost to regulated entities.
(d) How much will it cost the regulated entities for subsequent years?
This regulation provides disability retirement provisions for new tier members as required by law and does not result in any cost to regulated entities.
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Cost Savings (+/-):
Expenditures (+/-):
Other Explanation:
(5) Explain whether this administrative regulation will have a major economic impact, as defined below.
“Major economic impact” means an overall negative or adverse economic impact from an administrative regulation of five hundred thousand dollars ($500,000) or more on state or local government or regulated entities, in aggregate, as determined by the promulgating administrative bodies. [KRS 13A.010(13)] This regulation provides for disability retirement provisions for new tier members as required by law and does not result in a major economic impact as defined by this question.
FINANCE AND ADMINISTRATION CABINET
Teachers’ Retirement System
(New Administrative Regulation)
102 KAR 1:361.Disability retirement for TRS 4 members with less than five (5) years of service.
Section 1.
For TRS 4 members who have less than five (5) years of creditable Kentucky service, the disability retirement benefits, including all eligibility and other conditions, shall be those disability retirement benefits for non-hazardous positions provided under KRS 61.621 (the Fred Capps Memorial Act).Section 2.
The members described in Section 1 shall not be eligible for benefits provided by KRS 161.661 or 161.663.Section 3.
Administrative Provisions.(1)
An application for duty-related injury disability benefits shall be filed on the TRS 4 Disability Retirement Application – Less Than Five Years of Service (application) and shall include:(a)
A photocopy of the member's certified birth certificate;(b)
A photocopy of the member's signed Social Security card;(c)
A voided or cancelled check from the institution where monthly disbursements shall be electronically transmitted;(d)
The Physician's Disability Evaluation Report and supporting documentation regarding the member's duty-related injury;(e)
The Applicant's Disability Statement; and(f)
If the duty-related injury was the result of external violence, a copy of any incident or police report filed at the time of the incident.(2)
TRS shall submit the application and supporting documentation to the medical review committee for evaluation and written disposition as required by KRS 161.661(14).(3)
If the application is approved, payment of these disability benefits shall be effective on the applicable date set forth in KRS 161.661(11).Section 4.
A member described in Section 1 of this regulation shall be subject to providing ongoing and current medical reports upon request by TRS to confirm that the conditions for disability benefits eligibility remain in place.Section 5.
Incorporation by Reference.(1)
The following material is incorporated by reference:(a)
"TRS 4 Disability Retirement Application-Less Than Five Years of Service", September 2022;(b)
"Physician's Disability Evaluation Report", September 2022; and(c)
"Applicant's Disability Statement", September 2022.(2)
This material may be inspected, copied or obtained, subject to applicable copyright law, at Teachers' Retirement System, 479 Versailles Road, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 5 p.m.BRENDA MCGOWN, Chair
APPROVED BY AGENCY: September 14, 2022
FILED WITH LRC: September 22, 2022 at 1:50 p.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held on Wednesday, 21 December 2022, at 9:00 a.m. Eastern Time at the offices of the retirement system at 479 Versailles Road, Frankfort, Kentucky. Individuals interested in being heard at this hearing shall notify this agency in writing by Wednesday, 14 December 2022, five (5) workdays prior to the hearing of their intent to attend. If no notification of intent to attend the hearing is received by this date, the hearing may be cancelled. This hearing is open to the public. Any person who wishes to be heard will be given the opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation until the end of the calendar day on Saturday, 31 December 2022. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.
CONTACT PERSON: Robert B. Barnes, Deputy Executive Secretary of Operations and General Counsel, Kentucky Teachers' Retirement System, 479 Versailles Road, Frankfort, Kentucky 40601, phone (502) 848-8508, fax (502) 573-0199, or email Beau.Barnes@trs.ky.gov.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Robert B. Barnes
(1) Provide a brief summary of:
(a) What this administrative regulation does:
Establishes that new members who enter the retirement system after January 1, 2022, who have less than five (5) years of service credit, shall be provided disability retirement.
(b) The necessity of this administrative regulation:
This administrative regulation shall provide duty-related injury disability benefits for new members. The potential exists for a member to become disabled and be entitled to benefits that would be ongoing.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
This administrative regulation conforms to KRS 161.661 as amended by HB 258 (2021 RS) which requires the board to promulgate an administrative regulation to provide disability retirement for new TRS 4 members.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
This administrative regulation will identify for members entering the retirement system after January 1, 2022, who have less than five (5) years of service credit that disability retirement shall be provided to them.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
NA
(b) The necessity of the amendment to this administrative regulation:
NA
(c) How the amendment conforms to the content of the authorizing statutes:
NA
(d) How the amendment will assist in the effective administration of the statutes:
NA
(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
TRS Members who enter the retirement system after January 1, 2022, who have less than five (5) years of service credit and become disabled. TRS has had less than twenty (20) individuals become disabled for at least ten (10) years.
(4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment:
New members will file an application for disability benefits un-der KRS 61.621(2).
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
The cost to the new members is part of the retirement contribution they make to TRS.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
New members who sustain a duty-related injury after January 1, 2022, will be eligible to file for, and receive, duty-related injury disability retirement.
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
There is no cost to implement this regulation.
(b) On a continuing basis:
There is no continuing cost.
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
Administrative expenses of the retirement system are paid by trust and agency funds.
(7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
There is no increase in fees or funding required.
(8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
This regulation does not establish any fees or directly or indirectly increase any fees.
(9) TIERING: Is tiering applied?
Tiering is not applied, as all members are treated the same.
FISCAL NOTE
(1) What units, parts, or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation?
Teachers' Retirement System.
(2) Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation.
KRS 161.310, 161.661
(3) Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.
None.
(a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year?
None.
(b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years?
None.
(c) How much will it cost to administer this program for the first year?
Administrative costs will be dependent upon the number of applications processed and cannot be quantified at this time. Given the very small number of members that will likely be impacted, however, administrative costs will be very low.
(d) How much will it cost to administer this program for subsequent years?
Administrative costs will be dependent upon the number of applications processed and cannot be quantified at this time. Given the very small number of members that will likely be impacted, however, administrative costs will be very low.
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Revenues (+/-):
N/A
Expenditures (+/-):
N/A
Other Explanation:
(4) Estimate the effect of this administrative regulation on the expenditures and cost savings of the regulated entities for the first full year the administrative regulation is to be in effect.
(4) Estimate the effect of this administrative regulation on the expenditures and cost savings of regulated entities for the first full year the administrative regulation is to be in effect.
(a) How much cost savings will this administrative regulation generate for the regulated entities for the first year?
This regulation provides disability retirement provisions for new tier members as required by law and does not result in any cost savings.
(b) How much cost savings will this administrative regulation generate for the regulated entities for subsequent years?
This regulation provides disability retirement provisions for new tier members as required by law and does not result in any cost savings.
(c) How much will it cost the regulated entities for the first year?
This regulation provides disability retirement provisions for new tier members as required by law and does not result in any cost to regulated entities.
(d) How much will it cost the regulated entities for subsequent years?
This regulation provides disability retirement provisions for new tier members as required by law and does not result in any cost to regulated entities.
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Cost Savings (+/-):
Expenditures (+/-):
Other Explanation:
(5) Explain whether this administrative regulation will have a major economic impact, as defined below.
“Major economic impact” means an overall negative or adverse economic impact from an administrative regulation of five hundred thousand dollars ($500,000) or more on state or local government or regulated entities, in aggregate, as determined by the promulgating administrative bodies. [KRS 13A.010(13)] This regulation provides for disability retirement provisions for new tier members as required by law and does not result in a major economic impact as defined by this question.