KRS 161.500: Service credit.

(1) At the close of each fiscal year, the retirement system shall add service credit to the

account of each member who made contributions to his or her account during the

year. Nonuniversity members are entitled to a full year of service credit if they have

no more than five (5) unpaid days in a school or fiscal year under a contract

requiring a work schedule of one hundred eighty -five (185) days or greater.

University members are entitled to a full year of service credit if they have no more

than five (5) unpaid days in a school or fiscal year under a contract requiring a work

schedule of one hundred eighty (180) days or greater. In the event a member is paid

for less than the required number of days for a full year of service credit, the

member may purchase credit according to administrative regulations established by

the board of trustees. In no case shall more than one (1) year of service be credited

for all service performed in one (1) fiscal year. Members who complete their

employment contract prior to the close of a fiscal year and elect to retire prior to the

close of a fiscal year shall have their service credit reduced by eight percent (8%)

for each calendar month that the retirement becomes effective prior to July 1.

(2) Members who are employed and pai d for less than the number of days required in

their normal employment year shall be entitled to pro rata service credit for the

fractional service. Such credit shall be based upon the number of days employed

and the number of days in the member's annual e mployment agreement or normal

employment year.

(3) Service credit may not exceed the ratio between the school or fiscal year and the

number of months or fraction of a month the member is employed during that year.

(4) No service credit shall be granted in the Teachers' Retirement System for service

that has been or will be used in qualifying for annuity benefit payments from

another retirement system financed wholly or in part by public funds.