Title 105 | Chapter 001 | Regulation 001


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FINANCE AND ADMINISTRATION CABINET
Kentucky Retirement Systems
(New Administrative Regulation)

105 KAR 1:001.Definitions for KAR Title 105.

Section 1.

Definitions as used in Title 105 of the Kentucky Administrative Regulations, unless otherwise required by context or otherwise defined in a specific administrative regulation:

(1)

"AAC" means:

(a)

Prior to April 1, 2021, the Administrative Appeals Committee of the Board of Trustees of the Kentucky Retirement Systems.

(b)

Beginning April 1, 2021, the separate or joint Administrative Appeals Committees of the Board of Trustees of the Kentucky Retirement Systems and the Board of Trustees of the County Employees Retirement System in accordance with KRS 61.645(16) and 78.782(16).

(2)

"Accumulated employer credit" is defined in KRS 16.505(39), 61.510(40), and 78.510(37)

(3)

"Accumulated account balance" is defined in KRS 16.505(40), 61.510(41), and 78.510(38)

(4)

"Accumulated contributions" is defined in KRS 16.505(7), 61.510(12), and 78.510(12).

(5)

"Act in line of duty" or "in line of duty" is defined in KRS 16.505(19) and 78.510(48).

(6)

"Active member" means a member who is participating in the systems.

(7)

"Actuarial equivalent" is defined in KRS 16.505(13), 61.510(17), and 78.510(17).

(8)

"Agency" means:

(a)

Prior to April 1, 2021, the Kentucky Retirement Systems, which administered the State Police Retirement System, the Kentucky Employees Retirement System, and the County Employees Retirement System; and

(b)

Beginning April 1, 2021, the Kentucky Public Pensions Authority, which is authorized to carry out the day-to-day administrative needs of the Kentucky Retirement Systems (comprised of the State Police Retirement System and the Kentucky Employees Retirement System) and the County Employees Retirement System.

(9)

"Agency reporting official" is defined in KRS 78.510(20).

(10)

"Alternate payee" is defined in KRS 16.505(38), 61.510(39), and 78.510(36).

(11)

"Authorized leave of absence" is defined in KRS 16.505(14).

(12)

"Beneficiary" is defined in KRS 16.505(25), 61.510(26), and 78.510(25).

(13)

"Boards" means the Board of Trustees of the Kentucky Retirement Systems and the Board of Trustees of the County Employees Retirement System.

(14)

"Bona fide promotion or career advancement" is defined in KRS 61.598(1) and 78.545(22).

(15)

"Career threshold" is defined in KRS 61.702(4)(e).9.a. and 78.5536(4)(e)9.a.

(16)

"County" is defined in KRS 78.510(3).

(17)

"Creditable compensation" is defined in KRS 16.505(8), 61.510(13), and 78.510(13).

(18)

"Current rate of pay" is defined in KRS 16.505(24), 61.510(25), and 78.510(24).

(19)

"Current service" is defined in KRS 16.505(4), 61.510(10), and 78.510(10).

(20)

"DAC" means:

(a)

Prior to April 1, 2021, the Disability Appeals Committee of the Board of Trustees of the Kentucky Retirement Systems.

(b)

Beginning April 1, 2021, the separate or joint Disability Appeals Committees of the Board of Trustees of the Kentucky Retirement Systems and the Board of Trustees of the County Employees Retirement System in accordance with KRS 61.665(4) and 78.545(11).

(21)

"Department" is defined in KRS 61.510(3).

(22)

"Dependent child" is defined in KRS 16.505(17) and 78.510(49).

(23)

"Disability retirement date" is defined in KRS 16.505(16), 61.590(5)(b), and 78.510(51).

(24)

"Duty-related injury" is defined in KRS 61.621(2) and 78.545(20).

(25)

"Early retirement date" is defined in KRS 16.505(20), 61.590(5)(c), and 78.545(4).

(26)

"Employee" is defined in KRS 61.510(5) and 78.510(6).

(27)

"Employer" is defined in KRS 16.505(3), 61.510(6), and 78.510(7).

(28)

"Employer's effective cessation date" is defined in KRS 61.522(1)(c) and 78.535(1)(c).

(29)

"End of day" means 11:59 p.m. Eastern Time, on the date referenced.

(30)

"Examiner" means the medical examiners as provided in KRS 61.665 and 78.545(11).

(31)

"File" means a form or document has been received at the retirement office by mail, fax, secure email, in-person delivery, or via Self Service on the Web site maintained by the agency (if available).

(32)

"Final compensation" is defined in KRS 16.505(9), 61.510(14), and 78.510(14).

(33)

"Final rate of pay" is defined in KRS 16.505(10), 61.510(15), and 78.510(15).

(34)

"Fiscal year" is defined in KRS 16.505(32), 61.510(19), and 78.510(19).

(35)

"Gainful employment" means work in any capacity that is, or may be, performed with regularity and is, or may be, usually done for pay, whether or not pay is received, including seasonal, volunteer, part-time, and on-call work.

(36)

"Grandfathered service" is defined in KRS 61.552(9)(b) and 78.545(7).

(37)

"Hazardous disability" is defined in KRS 16.505(23) and 78.510(47).

(38)

"Hazardous position" means a regular full-time officer as defined in 16.505(22), or a "hazardous position" as defined in 61.592(1)(a), 78.510(42), and 78.5520(1).

(39)

"Hospital and medical insurance plan" is defined in KRS 61.702(1)(a) and 78.5536(1)(a).

(40)

"In line of duty" or "act in line of duty" is defined in KRS 16.505(19) and 78.510(48).

(41)

"Inactive member" means a member who is not participating in the system.

(42)

"Increment" is defined in KRS 61.510(29) and 78.510(44).

(43)

"Instructional staff" is defined in KRS 61.510(48).

(44)

"Invalid," when used in reference to a form, means that the form does not meet the requirements to be valid, and shall not be processed by the agency.

(45)

"Last day of paid employment" is defined in KRS 16.505(30), 61.510(32), and 78.510(45).

(46)

"Level percentage of payroll amortization method" is defined in KRS 61.510(28) and 78.510(43).

(47)

"Medical information" as used in KRS 61.610, 61.615, 61.665, 78.5526 and 78.5528, means reports of examinations or treatments; medical signs which are anatomical, physiological, or psychological abnormalities that can be observed; psychiatric signs which are medically demonstrable phenomena indicating specific abnormalities of behavior, affect, thought, memory, orientation, or contact with reality; or laboratory findings which are anatomical, physiological, or psychological phenomena that can be shown by medically acceptable laboratory diagnostic techniques, including but not limited to chemical tests, electrocardiograms, electroencephalograms, X-rays, and psychological tests. Written statements from medical providers alone are not medical information unless accompanied by supporting contemporaneous records as discussed in this subsection.

(48)

"Member" is defined in KRS 16.505(21), 61.510(8), and 78.510(8).

(49)

"Membership date" is defined in KRS 16.505(35), 61.510(36), and 78.510(33).

(50)

"Month" is defined in KRS 16.505(34), 61.510(35), and 78.510(32).

(51)

"Monthly average pay" is defined in KRS 16.505(41), 61.510(45), and 78.510(52).

(52)

"Monthly contribution rate" is defined in KRS 61.702(1)(b) and 78.5536(1)(b).

(53)

"Nominal fee" is defined in KRS 61.510(43) and 78.510(40).

(54)

"Non-core services independent contractor" is defined in KRS 61.5991(9).

(55)

"Nonhazardous position" is defined in KRS 61.510(44) and 78.510(41).

(56)

"Normal retirement age" means the age at which the member meets the requirements for his or her normal retirement date.

(57)

"Normal retirement date" is defined in KRS 16.505(15), 61.510(18), 61.590(5)(a), and 78.510(18).

(58)

"Objective medical evidence" is defined in KRS 16.505(31), 61.510(33), and 78.510(46).

(59)

"Officers and employees of the General Assembly" is defined in KRS 61.510(20).

(60)

"Optional allowance" is defined in KRS 16.505(18).

(61)

"Participant" is defined in KRS 16.505(36), 61.510(37), and 78.510(34).

(62)

"Participating" is defined in KRS 16.505(33), 61.510(34), and 78.510(31).

(63)

"Participating employer" means any employer that participates in one (1) of the systems operated by the agency.

(64)

"Participation date" means the earlier of "membership date" as defined in this section or the date on which the member began participating in another state-administered retirement system if the member has not retired or taken a refund from the other state-administered retirement system.

(65)

"Past service" is defined in KRS 61.552(5)(a) and 78.545(7).

(66)

"Person" means a natural person.

(67)

"Premium" means the monthly dollar cost required to provide hospital and medical insurance plan coverage for a recipient, a recipient's spouse, or a disabled or dependent child.

(68)

"Prior service" is defined in KRS 16.505(5), 61.510(11), and 78.510(11).

(69)

"Provide," when used in reference to a form or other document, means the agency makes a form or document available on its Web site (if appropriate) or by mail, fax, secure email, or via Self Service on the Web site maintained by the agency (if available).

(70)

"Qualified domestic relations order" is defined in KRS 16.505(37), 61.510(38), and 78.510(35).

(71)

"Recipient" is defined in KRS 16.505(26), 61.510(27), and 78.510(26).

(72)

"Reemployment" means the retired member's first date of employment with a participating employer following his or her most recent retirement date.

(73)

"Regular full-time officers" is defined in KRS 16.505(22),

(74)

"Regular full-time position" is defined in KRS 61.510(21) and 78.510(21).

(75)

"Retired member" is defined in KRS 16.505(11), 61.510(24), and 78.510(23).

(76)

"Retirement allowance" is defined in KRS 16.505(12), 61.510(16), and 78.510(16).

(77)

"Retirement office" is defined in KRS 16.505(28), 61.510(31), and 78.510(29).

(78)

"School board" is defined in KRS 78.510(4).

(79)

"School term or year" is defined in KRS 78.510(28).

(80)

"Service" is defined in KRS 16.505(6), 61.510(9), and 78.510(9).

(81)

"State" means the Commonwealth of Kentucky.

(82)

"Systems" means the State Police Retirement System (KRS 16.505 to16.652), the Kentucky Employees Retirement System (KRS 61.510 to 61.705), and the County Employees Retirement System (KRS 78.510 to 78.852).

(83)

"Total and permanent disability" is defined in KRS 16.582(1)(a) and 78.5524(1)(a)1.

(84)

"Valid," when used in reference to a form, means that all required sections of a form are filled out, the form has been fully executed by the required person or the person's legal representative, and all supporting documentation required by the form is included with the form.

(85)

"Volunteer" is defined in KRS 61.510(42) and 78.510(39).

DAVID L. EAGER, Executive Director
APPROVED BY AGENCY: December 7, 2022
FILED WITH LRC: December 14, 2022 at 10:35 a.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held on Thursday, February 23, 2023, at 2:00 p.m. at the Kentucky Public Pension Authority, 1270 Louisville Road, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this agency in writing no later than five workdays prior to the hearing of their intent to attend. If no notification of intent to attend the hearing was received by that date, the hearing may be cancelled. 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. Written comments shall be accepted until Tuesday, February 28, 2023. 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: Jessica Beaubien, Policy Specialist, Kentucky Public Pension Authority, 1260 Louisville Road, Frankfort, Kentucky 40601, phone (502) 696-8800 ext. 8570, fax (502) 696-8615, email Legal.Non-Advocacy@kyret.ky.gov.

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Jessica Beaubien
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation establishes definitions for Title 105 of the Kentucky Administrative Regulations.
(b) The necessity of this administrative regulation:
This administrative regulation is necessary to establish the definitions for Title 105 of the Kentucky Administrative Regulations.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
This administrative regulation conforms to the authorizing statute by establishing definitions for Title 105 of the Kentucky Administrative Regulations, which contains administrative regulations for the Kentucky Public Pensions Authority and the systems for which it provides operations.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
This administrative regulation will assist in the effective administration of the statutes by establishing definitions for the administrative regulations in Title 105 of the Kentucky Administrative Regulations.
(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:
This is a new regulation.
(b) The necessity of the amendment to this administrative regulation:
This is a new regulation.
(c) How the amendment conforms to the content of the authorizing statutes:
This is a new regulation.
(d) How the amendment will assist in the effective administration of the statutes:
This is a new regulation.
(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
This administrative regulation may affect over 400,000 members of the systems for which the Kentucky Public Pensions Authority provides operations as well as their spouses, dependent children, and beneficiaries. Additionally, this administrative regulation may affect 1,452 employers that participate in the State Police Retirement System, the Kentucky Employees Retirement System, and the County Employees Retirement System. Finally, this administrative regulation will affect the Kentucky Public Pensions Authority and the three (3) systems for which it provides operations, the State Police Retirement System, the Kentucky Employees Retirement System, and the County Employees Retirement System.
(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:
None.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
This regulation will not cost any additional funds.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
This administrative regulation will assist all entities identified in question (3) with understanding the administrative regulations in Title 105 of the Kentucky Administrative Regulations.
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
None.
(b) On a continuing basis:
None.
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
There is no funding needed.
(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 administrative regulation does not establish any fees or directly or indirectly increase any fees.
(9) TIERING: Is tiering applied?
Tiering is not applied.

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?
1,452 employers that participate in the State Police Retirement System, the Kentucky Employees Retirement System, and the County Employees Retirement System may be impacted by this administrative regulation.
(2) Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation.
KRS 61.505(1)(g).
(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?
None.
(d) How much will it cost to administer this program for subsequent years?
None.
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Revenues (+/-):
None.
Expenditures (+/-):
None.
Other Explanation:
There is no fiscal impact associated with this administrative regulation.
(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?
None.
(b) How much cost savings will this administrative regulation generate for the regulated entities for subsequent years?
None.
(c) How much will it cost the regulated entities for the first year?
None.
(d) How much will it cost the regulated entities for subsequent years?
None.
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Cost Savings (+/-):
None.
Expenditures (+/-):
None.
Other Explanation:
There is no fiscal impact associated with this administrative regulation.
(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 administrative regulation will not have a major economic impact.

7-Year Expiration: 7/5/2030

Last Updated: 4/25/2024


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