Title 105 | Chapter 001 | Regulation 020REG


PROPOSED
This document is not yet current.
View Current Regulation
PREVIOUS VERSION
The previous document that this document is based upon is available.
View Previous Version
FINANCE AND ADMINISTRATION CABINET
Kentucky Public Pensions Authority
(Amended at ARRS Committee)

105 KAR 1:020.Reciprocal program between CERS, KERS, SPRS, TRS, JRP and LRP.

Section 1.

Definitions. "Death benefit" or "survivor benefit" means a payment to a beneficiary of a deceased member who met the eligibility requirements of KRS 16.578(1), 61.640(1), or 78.5532(1) on the date of his or hertheir death.

Section 2.

General Provisions.

(1)

To determine benefits upon theUpon death, disability, or service retirement of a member having an account in more than one (1) state-administered retirement system, the Kentucky Public Pensions Authority shallthe following procedure shall be applicable in order to determine benefits for a member having an account in more than one (1) retirement system:

(a)(1)

Combine the member's service in all systems;.

(b)(2)

Determine eligibility in each system based on combined service;.

(c)(3)

If eligible in any system, determine benefits; and.

(d)(4)

Check for specific exceptions such as prior service, request for separate account, or special death or disability exception.

(2)

The earliest membership date among the systems in which the member has service shall be used to calculate the benefits in each system.

(5)

Each system shall pay the applicable percentage of total benefit unless a specific exception exists.

Section 3.Section 2.

Service Retirement.

(1)

A member eligible to retire who elects service retirement from one (1) system, shall be paid from all systems in which the memberhe has an account unless he or she requests that his or herthey request that theirhe requests that his accounts be separated.

(2)

The "final compensation" shall be calculated by:

(a)

For a member with a membership date prior to September 1, 2008, using the five (5) highest, or three (3) highest, if eligible, fiscal years creditable compensation regardless of the system under which the service was earned, except as provided in KRS 61.680(7); or.

(b)

For a member with a membership date on or after September 1, 2008 but prior to January 1, 2014 who is employed in a:

1.

Nonhazardous position, using the five (5) complete fiscal years immediately preceding retirement regardless of the system under which the service was earned, except as provided in KRS 61.680(7). Fiscal years added to the final compensation calculation to reach sixty (60) months shall be added regardless of the system under which the service was earned; orand

2.

Hazardous position, by using the highest complete fiscal years regardless of the system under which the service was earned, except as provided in KRS 61.680(7). Fiscal years added to the final compensation calculation to reach thirty-six (36) months shall be added regardless of the system under which the service was earned.

(3)

Each system shall determine benefit payments on the basis of the final compensation but using only the service earned in that system. Payments shall be made by each system in accordance with its usual procedures. If a member is not eligible for an unreduced benefit, benefits shall be actuarially reduced based on factors adopted by the respective retirement boards.

(4)

The retiring member or beneficiary shall be required to elect the same payment option in each system administered by the Kentucky Public Pensions AuthorityRetirement Systems except that a member of the State Police Retirement Systemstate policeman or a member with hazardous service may select the "Ten (10) Year Certain" option establishedset forth in KRS 16.576(4) irrespective of the option chosen for nonhazardous service in another retirement system administered by the Kentucky Public Pensions Authority..

(5)

(a)

Aretiring member may elect to have each system treat his or hertheirhis service credit in that system without regard to any other service credit, by:

(a)

Requesting that his or hertheirhis accounts be separated by filing a Form 2022, Separation of Accounts; or

(b)

Failing to retire from the other state-administered retirement system within one (1) calendar month of his or hertheir effective retirement date with the retirement systems administered by Kentucky Public Pensions Authority. A member shallwill not be considered to have failed to retire from the other state-administered retirement system on the basis of the other state-administered retirement system's determination, notwithstanding the provisions of KRS 61.680, that the member is only eligible for a refund of contributions from the other state-administered retirement system , with the Form 6000, Notification of Retirement.

(6)

If so requested, "final compensation" shall be based on the creditable compensation earned under each system separately.

Section 4.Section 3.

Disability Retirement.

(1)

(a)

If a contributing member of one (1) of the six (6) state-administered retirement systems qualifies for disability benefits, all systems under which the combined service meets service requirements shall participate in benefit payments unless accounts are separated by provisions of KRS 61.680(2)(b).

(b)

Each system shall calculate benefits using the formula in effect in that system.

(c)

Service added to County Employees Retirement System, Kentucky Employees Retirement System and State Police Retirement System accounts in accordance with the appropriate disability formula established in 105 KAR 1:210, Section 119, shall be prorated between system accounts based on a percentage of actual earned service in each system unless such proration conflicts with maximum added service permitted by law governing each system.

(d)

Service added to Teachers Retirement System accounts pursuant to KRS 161.661(4) shall be actual earned service and upon such an award of service the Kentucky Public Pensions Authority shall recalculate the service to be added to the County Employees Retirement System, Kentucky Employees Retirement System, and State Police Retirement System accounts using the appropriate disability formula as established in 105 KAR 1:210, Section 11.

(2)

If the combined service of a member meets service requirements in only one (1) system, then that system shall pay benefits under the disability formula and the other system shall payas follows:

(a)

Benefits based on separate accounts if the member elects to maintain separate accounts;

(b)

An actuarial accrued benefit based on the member's age, service and final compensation; or

(c)

A refund, if requested by the member.

(3)

The medical requirements for disability benefits shall be those of the system to which the member last contributed if combined service meets service requirements of that system. If service requirements are met in only one (1) system, the medical requirements of that system shall prevail.

(4)

The process established in this section shall also be followed if the member qualifies for duty-related injury or death benefits pursuant to KRS 61.621.

Section 5.Section 4.

Survivor Benefit. A member contributing to any of the six (6) state-administered retirement systems who has combined service sufficient to qualify his or hertheir beneficiaries for a survivordeath benefit shall have his or hertheirhis County Employees Retirement System, Kentucky Employees Retirement System, or State Police Retirement System benefits computed under the regular survivordeath formula based on his or hertheirhis service in each of the three (3) systems.

Section 6.Section 5.

Service Purchases. A member having valid service credit in more than one (1) of the retirement systems administered by Kentucky Public Pensions AuthorityRetirement Systems who is eligible to purchase service credit may elect to purchase service credit in one (1) system, orhe may divide the service credit between the systems permitting purchase. If service is to be divided, the following additional requirements shall be met:

(1)

The same years of service shall not be used in more than one (1) system; and.

(2)

Each system shall calculate the costs of the retirement credit pursuant toin keeping with the statutes and administrative regulations of that system.

Section 7.Section 6.

Medical Insurance.

(1)

A retiring member with service in more than one state-administered retirement systemthe Kentucky Teachers' Retirement System and one (1) or more of the three (3) systems administered by Kentucky Retirement Systems shall have his or hertheirhis total service in allfour (4) systems combined to determine his or hertheirhis eligibility for medical insurance benefits. The systems shall share the cost of the member's premium under this section based on the member'shis combined service.

(2)

If the member meets the minimum eligibility requirements, the member may elect to participate in the insurance program established inunder KRS 6.577, 16.645, 21.427, 61.702, 78.5536, or 161.675. The premium paid from the insurance funds shall not be more than 100 percent of the single premium amount adopted by the respective boards of trustees or more than the maximum percentage payable under the program established under KRS 6.577, 16.645, 21.427, 61.702, 78.5536, or 161.675.

(3)

(a)

If the member elects to participate in the program under KRS 61.702 or 78.5536, the member's service in the state-administered retirement systems shall be combined to determine the applicable percentage that shall be paid toward his or hertheirhis individual coverage under KRS 61.702(3) and 78.5536(3).

(b)

The state-administered retirement systems shall pay a pro rata share of the member's premium based on the service in each system expressed as a percentage of total service credit earned in all systems not to exceed the amount of the single monthly contribution ratepremium cost adopted by the Board of Trustees of Kentucky Retirement Systems or the Board of Trustees of County Employees Retirement System.

1.

The amount paid by the Kentucky Teachers' Retirement System shall not exceed the amount of the single monthly contribution ratepremium cost adopted by the Board of Trustees of the Kentucky Teachers' Retirement System.

2.

The Kentucky Teachers' Retirement System shall not pay a percentage of the premium for athe spouse orand dependents.

(4)

(a)

If the member elects to participate in the program under KRS 161.675, the member's service in the state-administered retirement systems shall be combined to determine the applicable percentage that shall be paid under KRS 161.675(4)161.675(3).

(b)

The state-administered retirement systems shall pay a pro rata share of the member's premium based on the service in each system expressed as a percentage of total service credit earned in all systems,including service in the Legislators' Retirement Plan and Judicial Retirement Plan, not to exceed the amount paid toward the monthly contributionpremium cost adopted by the Board of Trustees of Kentucky Teachers' Retirement System.

1.

The amount paid by the Kentucky Employees Retirement System, County Employees Retirement System, and State Police Retirement System shall not exceed the amount of the single monthly contributionpremium cost adopted by the Board of Trustees of the Kentucky Retirement Systems and the Board of Trustees of County Employees Retirement System.

2.

The Kentucky Employees Retirement System, County Employees Retirement System and State Police Retirement System shall not pay a percentage of the premium for athe spouse or dependents.

(c)

Premiums payable pursuant to KRS 161.675 shall be paid by the Kentucky Teachers' Retirement System. The County Employees Retirement System, Kentucky Employees Retirement System, and State Police Retirement System shall reimburse the Teachers' Retirement System for the portion of the premium attributable to service in those systems.

(5)

(a)

If the member elects to participate in the program under KRS 6.577 or 21.427, the member's service in the systems shall be combined to determine the applicable percentage that shall be paid under KRS 21.427(2)(a).

(b)

The state-administered systems shall each pay a pro rata share of the member's premium based on the service in each system expressed as a percentage of total service credit earned in all state-administered retirement systems, not to exceed the amount paid toward the monthly contribution adopted by the Board of Trustees of the Judicial Form Retirement System.

1.

The amount paid by the County Employees Retirement System, Kentucky Employees Retirement System, and State Police Retirement System shall not exceed the amount of the single monthly contribution adopted by the Board of Trustees of the Kentucky Retirement Systems and the Board of Trustees of the County Employees Retirement Systems.

2.

The County Employees Retirement System, Kentucky Employees Retirement System, and State Police Retirement System shall not pay a percentage of the monthly contribution for a spouse or dependents.

(c)

Premiums payable pursuant to KRS 6.577 or 21.427 shall be paid by the Judicial Form Retirement System. The County Employees Retirement System, Kentucky Employees Retirement System, and State Police Retirement System shall reimburse Judicial Form Retirement System for the portion of the premium attributable to service in those systems.

(6)

(a)

Premiums payable pursuant tounder KRS 61.702 and 78.5536 shall be paid by the Kentucky Employees Retirement System, County Employees Retirement System, and State Police Retirement System. The Kentucky Teachers' Retirement System or Judicial Form Retirement System shall reimburse the systems for the portion of the premium attributable to service in that system.

(b)

Premiums payable pursuant tounder KRS 161.675 shall be paid by the Kentucky Teachers' Retirement System. The Kentucky Employees Retirement System, County Employees Retirement System, and State Police Retirement System shall reimburse the system for the portion of the premium attributable to service in those systems.

Section 8.Section 7.

Incorporation by Reference.

(1)

The following material is incorporated by reference:

(a)

"Form 2022, "Separation of Accounts," 11/25", Kentucky Public Pensions Authority is incorporated by referenceAugust 2002", Kentucky Retirement Systems; and

(b)

"Form 6000, Notification of Retirement, July 2004", Kentucky Retirement Systems.

(2)

This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Kentucky Public Pensions AuthorityRetirement Systems, Perimeter Park West, 1260 Louisville Road, Frankfort, Kentucky 40601-6124, Monday through Friday, 8 a.m. to 4:30 p.m. and on the agency's website at kyret.ky.gov.

FILED WITH LRC: February 9, 2026
CONTACT PERSON: Carole J. Catalfo, Policy Specialist, Kentucky Public Pensions Authority. 1260 Louisville Road, Frankfort, Kentucky 40601. Phone (502) 696-8679, Fax (502) 696-8615, Email: Legal.Non-Advocacy@kyret.ky.gov

7-Year Expiration: 3/5/2026


Page Generated: 2/6/2026, 4:11:08 PM