Title 105 | Chapter 001 | Regulation 390
SUPERSEDED
This document is no longer current.
PREVIOUS VERSION
The previous document that this document is based upon is available.
FINANCE AND ADMINISTRATION CABINET
Kentucky Retirement Systems
(Amendment)
105 KAR 1:390.Employment after retirement.
Section 1.
Definitions.(1)
Unless otherwise defined in this section, the definitions contained in KRS 16.505, 61.510, and 78.510 shall apply to this administrative regulation.(2)
Prior to April 1, 2021, "agency" means the Kentucky Retirement Systems, which administered the State Police Retirement System, the Kentucky Employees Retirement System, and the County Employees Retirement System. Effective April 1, 2021, "agency" means 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.(3)
"File" means a form has been received at the retirement office by mail, fax, secure email, in-person delivery, or upload via Self Service on the Web site maintained by the agency (if available).(4)
"Retirement(5)
"Non-participating position" means any position of employment with a participating employer other than a regular full-time position as defined by KRS 61.510(21), 78.510(21), and 61.680(6) or a regular full-time officer position as defined by KRS 16.505(22).(6)(2)
"Participating employer" means any employer that participates in one (1) of the systems operated(7)(3)
"Participating position" means a regular full-time position as defined by KRS 61.510(21),(8)(4)
"Reemployment" means the retired member's first date of employment with a participating employer following his or her most recent(9)
"Systems" means the State Police Retirement System, the Kentucky Employees Retirement System, and the County Employees Retirement System.Section 2.
Form 6000 Certification.(1)
In order to retire with the systems operated by the agency(2)
The agencySection 3.
Employment After Retirement.(1)
A retired member who is reemployed with a participating employer in any position, including participating positions and non-participating positions, shall have:(a)
A bona fide separation from service as provided in subsection (2) of this section; and(b)
A break in service as provided in subsection (3) of this section.(2)
(a)
"Bona fide separation from service" as provided in this section shall include a cessation of the employment relationship between the member and the member's employer without a prearranged agreement when the member retires that he or she will return to work for any participating employer in any capacity.(b)
"Prearranged agreement" as provided in this section shall not include reemployment accepted more than twelve (12) calendar months after the member's(c)
An elected official's retirement shall be voided due to the existence of a prearranged agreement if, within twelve (12) months of(3)
"Break in service" as provided in this section shall require that:(a)
A member who retired from a hazardous position shall have a one (1) calendar month break in service before returning to work with any participating employer in a hazardous participating position.(b)
Except as provided in paragraph (a) of this subsection, a member who retired from a hazardous or nonhazardous position shall have a three (3) calendar month break in service before returning to work with any participating employer.(4)
(a)
If a retired member seeks reemployment with a participating employer within twelve (12) months of his or her (a)
The(b)
A(c)
Any other information requested by the agency from the participating employer and the retired member.(5)
(a)
The agency(b)
If the agencySection 4.
Independent Contractors and Leased Employees.(1)
(a)
If a retired member seeks to provide services to a participating employer as an independent contractor, under a professional services contract, or as a leased employee(a)(b)
A(b)(c)
A(c)
A(d)
Any other information requested by the agency from the participating employer and the retired member.(2)
The agency shall apply common law factors used by the Internal Revenue Service to determine whether a retired member is an employee of the participating employer or an independent contractor of the participating employer.(3)
(a)
The agency(b)
If the agency(c)
If the agency determines that the retired member is an employee of the participating employer, rather than an independent contractor or leased employee through a leasing company, staffing agency, or other entity, the employer shall be required to do the following:1.
Report the retired member as required by KRS 61.675, KRS 78.625, and 105 KAR 1:145;2.
Pay employer contributions for the retired member as specified by KRS 61.565, 61.702, and 78.635; and3.
Reimburse the systems for the cost of health insurance premiums paid by the systems for the retired member.Section 5.
Volunteers.(1)
(a)
If a retired member seeks to volunteer with a participating employer(a)(b)
A(b)(c)
A(c)
Any other information requested by the agency from the participating employer and retired member.(2)
(a)
The agency(b)
If the Agency(c)
If the agency determines that the retired member is an employee of the participating employer, rather than a volunteer, the employer shall be required to do the following:1.
Report the retired member as required by KRS 61.675, 78.625, and 105 KAR 1:145;2.
Pay employer contributions for the retired member as specified by KRS 61.565, 61.702, and 78.635; and3.
Reimburse the systems for the cost of health insurance premiums paid by the systems for the retired member.Section 6.
Health Insurance Premium Reimbursements for Retired Members Reemployed by Multiple Participating Employers. If a retired member is reemployed by multiple participating employers in a calendar month in positions that qualify as regular full-time pursuant to KRS 61.510(21), 61.680(6), 78.510(21), and 78.545(16), each participating employer shall be responsible for reimbursing the systems for a portion of the health insurance premium paid by the systems to provide coverage for the retired member for that calendar month that is equal to the cost of the premium divided by the number of participating employers that are not exempt from reimbursement of health insurance premiums. Participating employers that are exempt from reimbursement of health insurance premiums under Section 7 of this administrative regulation, or by virtue of being a school board employing the retired member for eighty (80) days or less during the fiscal year, are not responsible for health insurance premiums under this Section.Section 7.
Exemption for Payment Of Employer Contributions and Reimbursement of Health Insurance Premiums for Retired Members Reemployed as Police Officers and School Resource Officers.(1)
(a)
A participating employer shall be exempt from paying employer contributions and from reimbursing the systems for the cost of the health insurance premiums paid by the systems for a retired member reemployed as a police officer pursuant to KRS 70.291 to 70.293 for a term of appointment of no more than one (1) year if a completed Form 6760, County Police or Sheriff Appointment of Retired Police Officer, and the supporting documentation required by the Form 6760 are on file at the retirement office prior to the start of the retired member's term of appointment.(b)
If a completed Form 6760, County Police or Sheriff Appointment of Retired Police Officer, and the supporting documentation required by the Form 6760 are not on file at the retirement office prior to the start of the retired member's term of appointment as a police officer pursuant to KRS 70.291 to 70.293, then the participating employer shall be exempt from paying employer contributions and reimbursements of health insurance premiums for a retired member reemployed as a police officer pursuant to KRS 70.291 to 70.293 effective in the calendar month after a completed Form 6760 and supporting documentation are on file at the retirement office.(2)
(a)
For each subsequent term of reappointment after the initial term of appointment listed on the completed Form 6760, County Police or Sheriff Appointment of Retired Police Officer, described in subsection (1) of this Section, the participating employer shall be exempt from paying employer contributions and from reimbursing the systems for the cost of the health insurance premiums paid by the systems for a retired member reemployed as a police officer pursuant to KRS 70.291 to 70.293 for a term of reappointment of no more than one (1) year if a completed Form 6764, Recertification of Retired Police Officer, is on file at the retirement office prior to the start of the retired member's term of reappointment.(b)
If a completed Form 6764, Recertification of Retired Police Officer, is not on file at the retirement office prior to the start of the retired member's term of reappointment as a police officer pursuant to KRS 70.291 to 70.293, then the participating employer shall be exempt from paying employer contributions and reimbursements of health insurance premiums for a retired member reemployed as a police officer pursuant to KRS 70.291 to 70.293 effective in the calendar month after a completed Form 6764 and supporting documentation are on file at the retirement office.(3)
(a)
A participating employer shall be exempt from paying employer contributions and from reimbursing the systems for the cost of the health insurance premiums paid by the systems to provide coverage for a retired member reemployed as a school resource officer pursuant to KRS 158.441 for a term of appointment of no more than one (1) year if a completed Form 6766, Appointment of Retired School Resource Officer, and the supporting documentation required by the Form 6766 are on file at the retirement office prior to the start of the retired member's term appointment.(b)
If a completed Form 6766, Appointment of Retired School Resource Officer, and the supporting documentation required by the Form 6766 are not on file at the retirement office prior to the start of the retired member's term appointment, then the participating employer shall be exempt from paying employer contributions and reimbursements of health insurance premiums for a retired member reemployed as a school resource officer pursuant to KRS 158.441 effective in the calendar month after a completed Form 6766 and supporting documentation are on file at the retirement office.(4)
(a)
A participating employer shall be exempt from paying employer contributions and from reimbursing the systems for the cost of the health insurance premiums paid by the systems for a retired member reemployed as a Kentucky State Police school resource officer pursuant to KRS 158.441 for a term of appointment of no more than one (1) year if a completed Form 6767, Appointment of Kentucky State Police School Resource Officer, and the supporting documentation required by the Form 6767 are on file at the retirement office prior to the start of the retired member's term appointment.(b)
If a completed Form 6767, Appointment of Kentucky State Police School Resource Officer, and the supporting documentation required by the Form 6767 are not on file at the retirement office prior to the start of the retired member's term appointment, then the participating employer shall be exempt from paying employer contributions and reimbursements of health insurance premiums for a retired member reemployed as a Kentucky State Police school resource officer pursuant to KRS 158.441 effective in the calendar month after a completed Form 6767 and supporting documentation are on file at the retirement office.(5)
(a)
A participating employer shall be exempt from paying employer contributions and from reimbursing the systems for the cost of the health insurance premiums paid by the systems for a retired member reemployed as a police officer by a postsecondary institution pursuant to KRS 164.952 for a term of appointment of no more than one (1) year if a completed Form 6768, Postsecondary Institution Appointment of Retired Police Officer, and the supporting documentation required by the Form 6768 are on file at the retirement office prior to the start of the retired member's term appointment.(b)
If a completed Form 6768, Postsecondary Institution Appointment of Retired Police Officer, and the supporting documentation required by the Form 6768 are not on file at the retirement office prior to the start of the retired member's term appointment, then the participating employer shall be exempt from paying employer contributions and reimbursements of health insurance premiums for a retired member reemployed as a police officer by a postsecondary institution pursuant to KRS 164.952 in the calendar month after a completed Form 6768 and supporting documentation are on file at the retirement office.(6)
A participating employer shall not be eligible for exemption from payment of employer contributions or from reimbursing the systems for the costs of health insurance premiums for any retired members reemployed as a police officer pursuant to KRS 95.022 unless a Form 6769, Certification of Employed Police Officers Calendar Year 2015, is on file at the retirement office.(7)
(a)
A participating employer with a Form 6769, Certification of Employed Police Officers Calendar Year 2015, on file at the retirement office shall be exempt from paying employer contributions and from reimbursing the systems for the costs of health insurance premiums for a retired member reemployed as a police officer pursuant to KRS 95.022 for a term of appointment of no more than one (1) year if a completed Form 6770, City Appointment of Retired Police Officer, and the supporting documentation required by the Form 6770 are on file at the retirement office prior to the start of the retired member's term of appointment.(b)
If a completed Form 6770, City Appointment of Retired Police Officer, and the supporting documentation required by the Form 6770 are not on file at the retirement office prior to the start of the retired member's term of appointment, then the participating employer with a Form 6769, Certification of Employed Police Officers Calendar Year 2015, on file at the retirement office shall be exempt from paying employer contributions and reimbursements of health insurance premiums for a retired member reemployed as a police officer pursuant to KRS 95.022 effective in the calendar month after a completed Form 6770 and supporting documentation are on file at the retirement office.(8)
(a)
Each subsequent term of reappointment after the initial term of appointment listed on the completed Form 6770, City Appointment of Retired Police Officer, described in subsection (7) of this Section, the participating employer with a Form 6769, Certification of Employed Police Officers Calendar Year 2015, on file shall be exempt from paying employer contributions and health insurance premiums paid by the systems for a retired member reemployed as a police officer pursuant to KRS 95.022 for a term of reappointment of no more than one (1) year if a completed Form 6774, City Recertification of Retired Police Officer, is on file at the retirement office prior to the start of the retired member's term of reappointment.(b)
If a completed Form 6774, City Recertification of Retired Police Officer, is not on file at the retirement office prior to the start of the retired member's term of reappointment, then the participating employer shall be exempt from paying employer contributions and reimbursements of health insurance premiums for retired member reemployed as a police officer pursuant to KRS 95.022 in the calendar month after a completed Form 6764 is on file at the retirement office.Section 8.Section 6.
Incorporation by Reference.(1)
The following material is incorporated by reference:(a)
Form 6751, "Employer Certification Regarding Reemployment," March 2022(b)
Form 6752, "Employer Certification of Independent Contractor/Leased Employee," April 2021(c)
Form 6753, "Employer Certification of Volunteer," April 2021;(d)
Form 6754, "Member Reemployment Certification," April 2021;(e)
Form 6760, "County Police or Sheriff Appointment of Retired Police Officer," March 2022;(f)
Form 6766, "Appointment of Retired School Resource Officer," March 2022;(g)
Form 6767, "Appointment of Kentucky State Police School Resource Officer," March 2022;(h)
Form 6768, "Postsecondary Institution Appointment of Retired Police Officer," March 2022;(i)
Form 6769, "Certification of Employed Police Officers Calendar Year 2015," July 2016;(j)
Form 6770, "City Appointment of Retired Police Officer," March 2022; and(k)
Form 6774, "City Recertification of Retired Police Officer," July 2016.(2)
This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Kentucky Public Pensions AuthorityDAVID L. EAGER, Executive Director
APPROVED BY AGENCY: April 12, 2022
FILED WITH LRC: April 13, 2022 at 10:30 a.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held on Tuesday, June 28, 2022 at 2:00 p.m. at the Kentucky Public Pensions Authority, 1270 Louisville Road, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this agency in writing by 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. 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. Written comments shall be accepted until June 30, 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: Michael Board, Executive Director Office of Legal Services, Kentucky Public Pensions Authority, 1260 Louisville Road, Frankfort, Kentucky 40601, email Legal.Non-Advocacy@kyret.ky.gov, telephone (502) 696-8800 ext. 8647, facsimile (502) 696-8801.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Michael Board
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation establishes the forms, procedures, and requirements for the reemployment of retired members by employers that participate in the systems operated by the Kentucky Public Pensions Authority.
(b) The necessity of this administrative regulation:
This administrative regulation is necessary to establish the forms, procedures, and requirements for both members and participating employers when a member is reemployed by a participating employer after retirement. Additionally, KRS 61.637(18) and 78.5540(5) require the promulgation of administrative regulations to implement KRS 61.637 and 78.5540.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
This administrative regulation conforms to the authorizing statute by establishing the forms, procedures, and requirements for reemployment of a retired member by a participating employer in accordance with KRS 15.420(2)(a), 16.010, 16.505, 61.505, 61.510, 61.565, 61.590, 61.637, 61.675, 61.702, 70.291 - 70.293, 78.510, 78.545, 78.5540, 78.625, 78.635, 95.022, 158.441, 164.952, and 26 U.S.C. 401(a) and 26 C.F.R. 1.401-1, 1.401(a)-1. In particular, KRS 61.637(18) and 78.5540(5) require the promulgation of administrative regulations to implement KRS 61.637 and 78.5540.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
This administrative regulation assists in the effective administration of the statutes by establishing the forms, procedures, and requirements for both members and participating employers when a member is reemployed by a participating employer after retirement. Specifically, KRS 61.637(18) and 78.5540(5) require the promulgation of administrative regulations to implement KRS 61.637 and 78.5540.
(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:
The amendment updates this administrative regulation to reflect the changes enacted by the General Assembly in House Bill 484 (2020) and House Bill 9 (2021). The amendment also clarifies the existing regulation and incorporates by reference additional forms related to reemployment after retirement.
(b) The necessity of the amendment to this administrative regulation:
The amendment updates this administrative regulation to reflect the changes enacted by the General Assembly in House Bill 484 (2020) and House Bill 9 (2021). The amendment also clarifies the existing regulation and incorporates by reference additional forms related to reemployment after retirement.
(c) How the amendment conforms to the content of the authorizing statutes:
This amendment conforms to the authorizing statute by updating the forms, procedures, and requirements for reemployment of a retired member by a participating employer in accordance with KRS 15.420(2)(a), 16.010, 16.505, 61.505, 61.510, 61.565, 61.590, 61.637, 61.675, 61.702, 70.291 - 70.293, 78.510, 78.545, 78.5540, 78.625, 78.635, 95.022, 158.441, 164.952, and 26 U.S.C. 401(a) and 26 C.F.R. 1.401-1, 1.401(a)-1.
(d) How the amendment will assist in the effective administration of the statutes:
This amendment assists in the effective administration of the statutes by updating the forms, procedures, and requirements for reemployment of a retired member by a participating employer in accordance with KRS 15.420(2)(a), 16.010, 16.505, 61.505, 61.510, 61.565, 61.590, 61.637, 61.675, 61.702, 70.291 - 70.293, 78.510, 78.545, 78.5540, 78.625, 78.635, 95.022, 158.441, 164.952, and 26 U.S.C. 401(a) and 26 C.F.R. 1.401-1, 1.401(a)-1.
(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
One (1) entity that provides day-to-day operations for the three (3) public pensions systems: Kentucky Public Pensions Authority (the public pension systems are the Kentucky Employees Retirement System, the County Employees Retirement System, and the State Police Retirement System). Potentially, as many as 401,043 individuals who are members of the Kentucky Employees Retirement System, County Employees Retirement System, and State Police Retirement System. 124,061 participating employers, including local governments (county and city), school boards, other local agencies, state departments, state boards, other executive and quasi-governmental agencies, and the Kentucky State Police.
(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:
These amendments will require participating employers seeking exemption from paying employer contributions and health insurance reimbursements for certain reemployed retired police officers and school resource officers to submit forms and other documentation in order to qualify for the exemption. Additionally, participating employers employing retired members that are also employed by other participating employers will have to reimburse a portion of the health insurance premiums paid by the systems operated by the Kentucky Public Pensions Authority for the retired member, unless the participating employer qualifies for an exemption. All other amendments made are for the purpose of clarifying the existing regulation and do not require additional action by any of the regulated entities.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
The cost of compliance with the amendments for regulated entities should be negligible. However, upon compliance with the amendments to this administrative regulation, some participating employers may experience a change in the employer contributions and health insurance premium reimbursements owed to the systems operated by the Kentucky Public Pensions Authority. Whether the employer contributions and health insurance premium reimbursements owed by the various affected participating employers will increase or decrease and the amount of the fluctuations in costs are not known (and are expected to vary by participating employer).
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
Entities will have greater assurance that they are reemploying retired police officers and school resource officers that meet the statutory requirements for exemption from employer contributions and health insurance premium reimbursements. Accordingly, these entities are less likely to owe potentially significant back payments of employer contributions and health insurance premium reimbursements when the entity accidentally hires a retired police officer or school resource officer that does not meet the statutory requirements to allow the entity to be exempt from paying employer contributions and health insurance premium reimbursements. Additionally, splitting the cost of health insurance premium reimbursements evenly based on the number of participating employers employing the retired member is a fair way for the participating employer hiring a retired member that works for multiple participating employers to anticipate the hiring costs up front.
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
The costs associated with the implementation of the amendments to this administrative regulation should be negligible.
(b) On a continuing basis:
The costs associated with the implementation of the amendments to this administrative regulation should be negligible.
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
Administrative expenses of the Kentucky Public Pensions Authority are paid from the Retirement Allowance Account (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 established any fees or directly or indirectly increased 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. All members and participating employers are subject to the same processes and procedures.
FISCAL NOTE ON STATE OR LOCAL GOVERNMENT
(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?
(2) Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation.
KRS 61.505, 61.637, and 78.5540.
(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.
This administrative regulation will not affect revenues of a state or local government agency. However, expenditures of state and local government agencies may fluctuate based on the incorporation of forms and other documentation required for certain participating employers to claim exemption from paying employer contributions and health insurance reimbursements for certain reemployed retired police officers and school resource officers. Whether expenditures of the various affected participating employers will increase or decrease and the amount of the fluctuations in expenditures are not known (and are expected to vary by participating employer).
(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?
The cost to Kentucky Public Pensions Authority to administer this administrative regulation should be negligible.
(d) How much will it cost to administer this program for subsequent years?
The cost to Kentucky Public Pensions Authority to administer this administrative regulation should be negligible.
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Revenues (+/-):
Expenditures (+/-):
Other Explanation:
Expenditures of state and local government agencies may fluctuate based on the incorporation of forms and other documentation required for certain participating employers to claim exemption from paying employer contributions and health insurance reimbursements for certain reemployed retired police officers and school resource officers. Whether expenditures of the various affected participating employers will increase or decrease and the amount of the fluctuations in expenditures are not known (and are expected to vary by participating employer).
FINANCE AND ADMINISTRATION CABINET
Kentucky Retirement Systems
(Amendment)
105 KAR 1:390.Employment after retirement.
Section 1.
Definitions.(1)
Unless otherwise defined in this section, the definitions contained in KRS 16.505, 61.510, and 78.510 shall apply to this administrative regulation.(2)
Prior to April 1, 2021, "agency" means the Kentucky Retirement Systems, which administered the State Police Retirement System, the Kentucky Employees Retirement System, and the County Employees Retirement System. Effective April 1, 2021, "agency" means 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.(3)
"File" means a form has been received at the retirement office by mail, fax, secure email, in-person delivery, or upload via Self Service on the Web site maintained by the agency (if available).(4)
"Retirement date" means the member's effective retirement date as described in KRS 61.590(5) and 78.545.(5)
"Non-participating position" means any position of employment with a participating employer other than a regular full-time position as defined by KRS 61.510(21), 78.510(21), and 61.680(6) or a regular full-time officer position as defined by KRS 16.505(22).(6)
"Participating employer" means any employer that participates in one (1) of the systems operated by the agency.(7)
"Participating position" means a regular full-time position as defined by KRS 61.510(21), 78.510(21), and 61.680(6) or a regular full-time officer position as defined by KRS 16.505(22).(8)
"Reemployment" means the retired member's first date of employment with a participating employer following his or her most recent retirement date.(9)
"Systems" means the State Police Retirement System, the Kentucky Employees Retirement System, and the County Employees Retirement System.Section 2.
Form 6000 Certification.(1)
In order to retire with the systems operated by the agency, an eligible member shall submit a Form 6000, Notification of Retirement, as incorporated by reference in 105 KAR 1:200. The Form 6000, Notification of Retirement, shall comply with the requirements of KRS 61.590, KRS 78.545, and 105 KAR 1:200.(2)
The agency shall not process a Form 6000, Notification of Retirement, until the member certifies on the Form 6000 that there is no prearranged agreement for reemployment with a participating employer after the member's retirement date.Section 3.
Employment After Retirement.(1)
A retired member who is reemployed with a participating employer in any position, including participating positions and non-participating positions, shall have:(a)
A bona fide separation from service as provided in subsection (2) of this section; and(b)
A break in service as provided in subsection (3) of this section.(2)
(a)
"Bona fide separation from service" as provided in this section shall include a cessation of the employment relationship between the member and the member's employer without a prearranged agreement when the member retires that he or she will return to work for any participating employer in any capacity.(b)
"Prearranged agreement" as provided in this section shall not include reemployment accepted more than twelve (12) calendar months after the member's retirement date.(c)
An elected official's retirement shall be voided due to the existence of a prearranged agreement if, within twelve (12) months of retirement, the official is reelected and takes office in the same position as the elected official held prior to retirement.(3)
"Break in service" as provided in this section shall require that:(a)
A member who retired from a hazardous position shall have a one (1) calendar month break in service before returning to work with any participating employer in a hazardous participating position.(b)
Except as provided in paragraph (a) of this subsection, a member who retired from a hazardous or nonhazardous position shall have a three (3) calendar month break in service before returning to work with any participating employer.(4)
If a retired member seeks reemployment with a participating employer within twelve (12) months of his or her retirement date, then the following shall be filed at the retirement office:(a)
The participating employer shall certify that there was no prearranged agreement on a completed Form 6751, Employer Certification Regarding Reemployment;(b)
A Form 6754, Member Reemployment Certification, completed by the retired member; and(c)
Any other information requested by the agency from the participating employer and the retired member.(5)
(a)
The agency shall issue a final determination to the retired member no later than thirty (30) days after receipt of all required forms and additional requested information.(b)
If the agency determines that the retired member failed to have a bona fide separation from service or a break in service and returned to work with any participating employer in any position, including a participating position or a non-participating position, the retired member's retirement shall be voided and he or she shall repay all retirement allowances, dependent child payments, and health plan premiums paid by the systems.Section 4.
Independent Contractors and Leased Employees.(1)
If a retired member seeks to provide services to a participating employer as an independent contractor, under a professional services contract, or as a leased employee within twelve (12) months of the retired member's retirement date, then the following shall be filed at the retirement office:(a)
A Form 6752, Employer Certification of Independent Contractor/Leased Employee, completed by the participating employer,(b)
A Form 6754, Member Reemployment Certification, completed by the member;(c)
A complete copy of any contract under which services are provided by the retired member to the participating employer; and(d)
Any other information requested by the agency from the participating employer and the retired member.(2)
The agency shall apply common law factors used by the Internal Revenue Service to determine whether a retired member is an employee of the participating employer or an independent contractor of the participating employer.(3)
(a)
The agency shall issue a final determination to the retired member no later than thirty (30) days after receipt of all required forms and requested information.(b)
If the agency determines that the retired member is an employee of the participating employer, rather than an independent contractor or leased employee through a leasing company, staffing agency, or other entity, the retired member shall be subject to the provisions of Section 3 of this administrative regulation and shall be required to have a "bona fide separation from service" and "break in service."(c)
If the agency determines that the retired member is an employee of the participating employer, rather than an independent contractor or leased employee through a leasing company, staffing agency, or other entity, the employer shall be required to do the following:1.
Report the retired member as required by KRS 61.675, KRS 78.625, and 105 KAR 1:145;2.
Pay employer contributions for the retired member as specified by KRS 61.565, 61.702, and 78.635; and3.
Reimburse the systems for the cost of health insurance premiums paid by the systems for the retired member.Section 5.
Volunteers.(1)
If a retired member seeks to volunteer with a participating employer within twelve (12) months of the retired member's retirement date, then the following shall be filed at the retirement office:(a)
A Form 6753, Employer Certification of Volunteer, completed by the participating employer;(b)
A Form 6754, Member Reemployment Certification, completed by the retired member; and(c)
Any other information requested by the agency from the participating employer and retired member.(2)
(a)
The agency shall issue a final determination to the retired member no later than thirty (30) days after receipt of all required forms and requested information.(b)
If the Agency determines that the retired member is an employee of the participating employer, rather than a volunteer, the retired member shall be subject to the provisions of Section 3 of this administrative regulation and shall be required to have a "bona fide separation from service" and "break in service."(c)
If the agency determines that the retired member is an employee of the participating employer, rather than a volunteer, the employer shall be required to do the following:1.
Report the retired member as required by KRS 61.675, 78.625, and 105 KAR 1:145;2.
Pay employer contributions for the retired member as specified by KRS 61.565, 61.702, and 78.635; and3.
Reimburse the systems for the cost of health insurance premiums paid by the systems for the retired member.Section 6.
Health Insurance Premium Reimbursements for Retired Members Reemployed by Multiple Participating Employers. If a retired member is reemployed by multiple participating employers in a calendar month in positions that qualify as regular full-time pursuant to KRS 61.510(21), 61.680(6), 78.510(21), and 78.545(16), each participating employer shall be responsible for reimbursing the systems for a portion of the health insurance premium paid by the systems to provide coverage for the retired member for that calendar month that is equal to the cost of the premium divided by the number of participating employers that are not exempt from reimbursement of health insurance premiums. Participating employers that are exempt from reimbursement of health insurance premiums under Section 7 of this administrative regulation, or by virtue of being a school board employing the retired member for eighty (80) days or less during the fiscal year, are not responsible for health insurance premiums under this Section.Section 7.
Exemption for Payment Of Employer Contributions and Reimbursement of Health Insurance Premiums for Retired Members Reemployed as Police Officers and School Resource Officers.(1)
(a)
A participating employer shall be exempt from paying employer contributions and from reimbursing the systems for the cost of the health insurance premiums paid by the systems for a retired member reemployed as a police officer pursuant to KRS 70.291 to 70.293 for a term of appointment of no more than one (1) year if a completed Form 6760, County Police or Sheriff Appointment of Retired Police Officer, and the supporting documentation required by the Form 6760 are on file at the retirement office prior to the start of the retired member's term of appointment.(b)
If a completed Form 6760, County Police or Sheriff Appointment of Retired Police Officer, and the supporting documentation required by the Form 6760 are not on file at the retirement office prior to the start of the retired member's term of appointment as a police officer pursuant to KRS 70.291 to 70.293, then the participating employer shall be exempt from paying employer contributions and reimbursements of health insurance premiums for a retired member reemployed as a police officer pursuant to KRS 70.291 to 70.293 effective in the calendar month after a completed Form 6760 and supporting documentation are on file at the retirement office.(2)
(a)
For each subsequent term of reappointment after the initial term of appointment listed on the completed Form 6760, County Police or Sheriff Appointment of Retired Police Officer, described in subsection (1) of this Section, the participating employer shall be exempt from paying employer contributions and from reimbursing the systems for the cost of the health insurance premiums paid by the systems for a retired member reemployed as a police officer pursuant to KRS 70.291 to 70.293 for a term of reappointment of no more than one (1) year if a completed Form 6764, Recertification of Retired Police Officer, is on file at the retirement office prior to the start of the retired member's term of reappointment.(b)
If a completed Form 6764, Recertification of Retired Police Officer, is not on file at the retirement office prior to the start of the retired member's term of reappointment as a police officer pursuant to KRS 70.291 to 70.293, then the participating employer shall be exempt from paying employer contributions and reimbursements of health insurance premiums for a retired member reemployed as a police officer pursuant to KRS 70.291 to 70.293 effective in the calendar month after a completed Form 6764 and supporting documentation are on file at the retirement office.(3)
(a)
A participating employer shall be exempt from paying employer contributions and from reimbursing the systems for the cost of the health insurance premiums paid by the systems to provide coverage for a retired member reemployed as a school resource officer pursuant to KRS 158.441 for a term of appointment of no more than one (1) year if a completed Form 6766, Appointment of Retired School Resource Officer, and the supporting documentation required by the Form 6766 are on file at the retirement office prior to the start of the retired member's term appointment.(b)
If a completed Form 6766, Appointment of Retired School Resource Officer, and the supporting documentation required by the Form 6766 are not on file at the retirement office prior to the start of the retired member's term appointment, then the participating employer shall be exempt from paying employer contributions and reimbursements of health insurance premiums for a retired member reemployed as a school resource officer pursuant to KRS 158.441 effective in the calendar month after a completed Form 6766 and supporting documentation are on file at the retirement office.(4)
(a)
A participating employer shall be exempt from paying employer contributions and from reimbursing the systems for the cost of the health insurance premiums paid by the systems for a retired member reemployed as a Kentucky State Police school resource officer pursuant to KRS 158.441 for a term of appointment of no more than one (1) year if a completed Form 6767, Appointment of Kentucky State Police School Resource Officer, and the supporting documentation required by the Form 6767 are on file at the retirement office prior to the start of the retired member's term appointment.(b)
If a completed Form 6767, Appointment of Kentucky State Police School Resource Officer, and the supporting documentation required by the Form 6767 are not on file at the retirement office prior to the start of the retired member's term appointment, then the participating employer shall be exempt from paying employer contributions and reimbursements of health insurance premiums for a retired member reemployed as a Kentucky State Police school resource officer pursuant to KRS 158.441 effective in the calendar month after a completed Form 6767 and supporting documentation are on file at the retirement office.(5)
(a)
A participating employer shall be exempt from paying employer contributions and from reimbursing the systems for the cost of the health insurance premiums paid by the systems for a retired member reemployed as a police officer by a postsecondary institution pursuant to KRS 164.952 for a term of appointment of no more than one (1) year if a completed Form 6768, Postsecondary Institution Appointment of Retired Police Officer, and the supporting documentation required by the Form 6768 are on file at the retirement office prior to the start of the retired member's term appointment.(b)
If a completed Form 6768, Postsecondary Institution Appointment of Retired Police Officer, and the supporting documentation required by the Form 6768 are not on file at the retirement office prior to the start of the retired member's term appointment, then the participating employer shall be exempt from paying employer contributions and reimbursements of health insurance premiums for a retired member reemployed as a police officer by a postsecondary institution pursuant to KRS 164.952 in the calendar month after a completed Form 6768 and supporting documentation are on file at the retirement office.(6)
A participating employer shall not be eligible for exemption from payment of employer contributions or from reimbursing the systems for the costs of health insurance premiums for any retired members reemployed as a police officer pursuant to KRS 95.022 unless a Form 6769, Certification of Employed Police Officers Calendar Year 2015, is on file at the retirement office.(7)
(a)
A participating employer with a Form 6769, Certification of Employed Police Officers Calendar Year 2015, on file at the retirement office shall be exempt from paying employer contributions and from reimbursing the systems for the costs of health insurance premiums for a retired member reemployed as a police officer pursuant to KRS 95.022 for a term of appointment of no more than one (1) year if a completed Form 6770, City Appointment of Retired Police Officer, and the supporting documentation required by the Form 6770 are on file at the retirement office prior to the start of the retired member's term of appointment.(b)
If a completed Form 6770, City Appointment of Retired Police Officer, and the supporting documentation required by the Form 6770 are not on file at the retirement office prior to the start of the retired member's term of appointment, then the participating employer with a Form 6769, Certification of Employed Police Officers Calendar Year 2015, on file at the retirement office shall be exempt from paying employer contributions and reimbursements of health insurance premiums for a retired member reemployed as a police officer pursuant to KRS 95.022 effective in the calendar month after a completed Form 6770 and supporting documentation are on file at the retirement office.(8)
(a)
Each subsequent term of reappointment after the initial term of appointment listed on the completed Form 6770, City Appointment of Retired Police Officer, described in subsection (7) of this Section, the participating employer with a Form 6769, Certification of Employed Police Officers Calendar Year 2015, on file shall be exempt from paying employer contributions and health insurance premiums paid by the systems for a retired member reemployed as a police officer pursuant to KRS 95.022 for a term of reappointment of no more than one (1) year if a completed Form 6774, City Recertification of Retired Police Officer, is on file at the retirement office prior to the start of the retired member's term of reappointment.(b)
If a completed Form 6774, City Recertification of Retired Police Officer, is not on file at the retirement office prior to the start of the retired member's term of reappointment, then the participating employer shall be exempt from paying employer contributions and reimbursements of health insurance premiums for retired member reemployed as a police officer pursuant to KRS 95.022 in the calendar month after a completed Form 6764 is on file at the retirement office.Section 8.
Incorporation by Reference.(1)
The following material is incorporated by reference:(a)
Form 6751, "Employer Certification Regarding Reemployment," March 2022;(b)
Form 6752, "Employer Certification of Independent Contractor/Leased Employee," April 2021;(c)
Form 6753, "Employer Certification of Volunteer," April 2021;(d)
Form 6754, "Member Reemployment Certification," April 2021;(e)
Form 6760, "County Police or Sheriff Appointment of Retired Police Officer," March 2022;(f)
Form 6766, "Appointment of Retired School Resource Officer," March 2022;(g)
Form 6767, "Appointment of Kentucky State Police School Resource Officer," March 2022;(h)
Form 6768, "Postsecondary Institution Appointment of Retired Police Officer," March 2022;(i)
Form 6769, "Certification of Employed Police Officers Calendar Year 2015," July 2016;(j)
Form 6770, "City Appointment of Retired Police Officer," March 2022; and(k)
Form 6774, "City Recertification of Retired Police Officer," July 2016.(2)
This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Kentucky Public Pensions Authority, 1260 Louisville Road, Frankfort, Kentucky 40601, Monday through Friday, from 8:00 a.m. to 4:30 p.m. This material is also available on the Authority's Web site at kyret.ky.gov.DAVID L. EAGER, Executive Director
APPROVED BY AGENCY: April 12, 2022
FILED WITH LRC: April 13, 2022 at 10:30 a.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held on Tuesday, June 28, 2022 at 2:00 p.m. at the Kentucky Public Pensions Authority, 1270 Louisville Road, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this agency in writing by 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. 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. Written comments shall be accepted until June 30, 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: Michael Board, Executive Director Office of Legal Services, Kentucky Public Pensions Authority, 1260 Louisville Road, Frankfort, Kentucky 40601, email Legal.Non-Advocacy@kyret.ky.gov, telephone (502) 696-8800 ext. 8647, facsimile (502) 696-8801.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Michael Board
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation establishes the forms, procedures, and requirements for the reemployment of retired members by employers that participate in the systems operated by the Kentucky Public Pensions Authority.
(b) The necessity of this administrative regulation:
This administrative regulation is necessary to establish the forms, procedures, and requirements for both members and participating employers when a member is reemployed by a participating employer after retirement. Additionally, KRS 61.637(18) and 78.5540(5) require the promulgation of administrative regulations to implement KRS 61.637 and 78.5540.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
This administrative regulation conforms to the authorizing statute by establishing the forms, procedures, and requirements for reemployment of a retired member by a participating employer in accordance with KRS 15.420(2)(a), 16.010, 16.505, 61.505, 61.510, 61.565, 61.590, 61.637, 61.675, 61.702, 70.291 - 70.293, 78.510, 78.545, 78.5540, 78.625, 78.635, 95.022, 158.441, 164.952, and 26 U.S.C. 401(a) and 26 C.F.R. 1.401-1, 1.401(a)-1. In particular, KRS 61.637(18) and 78.5540(5) require the promulgation of administrative regulations to implement KRS 61.637 and 78.5540.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
This administrative regulation assists in the effective administration of the statutes by establishing the forms, procedures, and requirements for both members and participating employers when a member is reemployed by a participating employer after retirement. Specifically, KRS 61.637(18) and 78.5540(5) require the promulgation of administrative regulations to implement KRS 61.637 and 78.5540.
(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:
The amendment updates this administrative regulation to reflect the changes enacted by the General Assembly in House Bill 484 (2020) and House Bill 9 (2021). The amendment also clarifies the existing regulation and incorporates by reference additional forms related to reemployment after retirement.
(b) The necessity of the amendment to this administrative regulation:
The amendment updates this administrative regulation to reflect the changes enacted by the General Assembly in House Bill 484 (2020) and House Bill 9 (2021). The amendment also clarifies the existing regulation and incorporates by reference additional forms related to reemployment after retirement.
(c) How the amendment conforms to the content of the authorizing statutes:
This amendment conforms to the authorizing statute by updating the forms, procedures, and requirements for reemployment of a retired member by a participating employer in accordance with KRS 15.420(2)(a), 16.010, 16.505, 61.505, 61.510, 61.565, 61.590, 61.637, 61.675, 61.702, 70.291 - 70.293, 78.510, 78.545, 78.5540, 78.625, 78.635, 95.022, 158.441, 164.952, and 26 U.S.C. 401(a) and 26 C.F.R. 1.401-1, 1.401(a)-1.
(d) How the amendment will assist in the effective administration of the statutes:
This amendment assists in the effective administration of the statutes by updating the forms, procedures, and requirements for reemployment of a retired member by a participating employer in accordance with KRS 15.420(2)(a), 16.010, 16.505, 61.505, 61.510, 61.565, 61.590, 61.637, 61.675, 61.702, 70.291 - 70.293, 78.510, 78.545, 78.5540, 78.625, 78.635, 95.022, 158.441, 164.952, and 26 U.S.C. 401(a) and 26 C.F.R. 1.401-1, 1.401(a)-1.
(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
One (1) entity that provides day-to-day operations for the three (3) public pensions systems: Kentucky Public Pensions Authority (the public pension systems are the Kentucky Employees Retirement System, the County Employees Retirement System, and the State Police Retirement System). Potentially, as many as 401,043 individuals who are members of the Kentucky Employees Retirement System, County Employees Retirement System, and State Police Retirement System. 124,061 participating employers, including local governments (county and city), school boards, other local agencies, state departments, state boards, other executive and quasi-governmental agencies, and the Kentucky State Police.
(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:
These amendments will require participating employers seeking exemption from paying employer contributions and health insurance reimbursements for certain reemployed retired police officers and school resource officers to submit forms and other documentation in order to qualify for the exemption. Additionally, participating employers employing retired members that are also employed by other participating employers will have to reimburse a portion of the health insurance premiums paid by the systems operated by the Kentucky Public Pensions Authority for the retired member, unless the participating employer qualifies for an exemption. All other amendments made are for the purpose of clarifying the existing regulation and do not require additional action by any of the regulated entities.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
The cost of compliance with the amendments for regulated entities should be negligible. However, upon compliance with the amendments to this administrative regulation, some participating employers may experience a change in the employer contributions and health insurance premium reimbursements owed to the systems operated by the Kentucky Public Pensions Authority. Whether the employer contributions and health insurance premium reimbursements owed by the various affected participating employers will increase or decrease and the amount of the fluctuations in costs are not known (and are expected to vary by participating employer).
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
Entities will have greater assurance that they are reemploying retired police officers and school resource officers that meet the statutory requirements for exemption from employer contributions and health insurance premium reimbursements. Accordingly, these entities are less likely to owe potentially significant back payments of employer contributions and health insurance premium reimbursements when the entity accidentally hires a retired police officer or school resource officer that does not meet the statutory requirements to allow the entity to be exempt from paying employer contributions and health insurance premium reimbursements. Additionally, splitting the cost of health insurance premium reimbursements evenly based on the number of participating employers employing the retired member is a fair way for the participating employer hiring a retired member that works for multiple participating employers to anticipate the hiring costs up front.
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
The costs associated with the implementation of the amendments to this administrative regulation should be negligible.
(b) On a continuing basis:
The costs associated with the implementation of the amendments to this administrative regulation should be negligible.
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
Administrative expenses of the Kentucky Public Pensions Authority are paid from the Retirement Allowance Account (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 established any fees or directly or indirectly increased 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. All members and participating employers are subject to the same processes and procedures.
FISCAL NOTE ON STATE OR LOCAL GOVERNMENT
(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?
(2) Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation.
KRS 61.505, 61.637, and 78.5540.
(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.
This administrative regulation will not affect revenues of a state or local government agency. However, expenditures of state and local government agencies may fluctuate based on the incorporation of forms and other documentation required for certain participating employers to claim exemption from paying employer contributions and health insurance reimbursements for certain reemployed retired police officers and school resource officers. Whether expenditures of the various affected participating employers will increase or decrease and the amount of the fluctuations in expenditures are not known (and are expected to vary by participating employer).
(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?
The cost to Kentucky Public Pensions Authority to administer this administrative regulation should be negligible.
(d) How much will it cost to administer this program for subsequent years?
The cost to Kentucky Public Pensions Authority to administer this administrative regulation should be negligible.
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Revenues (+/-):
Expenditures (+/-):
Other Explanation:
Expenditures of state and local government agencies may fluctuate based on the incorporation of forms and other documentation required for certain participating employers to claim exemption from paying employer contributions and health insurance reimbursements for certain reemployed retired police officers and school resource officers. Whether expenditures of the various affected participating employers will increase or decrease and the amount of the fluctuations in expenditures are not known (and are expected to vary by participating employer).