KRS 161.568: Eligibility to participate in optional retirement plan -- Election to change

from optional retirement plan to Kentucky Teachers' Retirement System.

(1) Eligibility to participate in the optional retirement plan shall be determined by the

board of regents of each of the state public postsecondary education institutions

identified in KRS 161.220(4)(b). The employees of these institutions of higher

education who are initially employed on or after the implementation date of the

optional retirement plan may make an election to participate in the optional

retirement plan within thirty (30) days after their employment date. This election

shall be irrevocable except as otherwise provided in this subsection. No member of

the Kentucky Teachers' Retiremen t System who terminates employment and is

subsequently reemployed by the same or another public postsecondary education

institution which participates in the Kentucky Teachers' Retirement System may be

eligible to elect to participate in the optional retir ement plan unless the date of

reemployment is at least six (6) months after the date of termination. All elections

made under this subsection shall be in writing and shall be filed with the

appropriate officer of the employer institution. Persons who origi nally elected to

participate in the optional retirement plan may later change their elections only as

follows:

(a) Any person otherwise eligible for membership in the Kentucky Teachers'

Retirement System may irrevocably elect one (1) time during his or her

lifetime to change his or her election and to prospectively participate in the

Kentucky Teachers' Retirement System. This election to change from the

optional retirement plan to Kentucky Teachers' Retirement System shall be

effective beginning on the firs t day of the first month immediately following

the date that written application for the election is received in the retirement

system's office on forms prescribed by the system. Any person exercising this

election shall not be entitled to purchase as serv ice credit in the Kentucky

Teachers' Retirement System any prior service with his or her postsecondary

education institution employer;

(b) Any person otherwise eligible for membership in the Kentucky Teachers'

Retirement System who previously elected to pa rticipate in the optional

retirement plan may irrevocably elect one (1) time within his or her first six

(6) years and six (6) months of continuous service in any one (1) or more of

the institutions identified in KRS 161.220(4)(b), to change his or her ele ction

and to prospectively participate in the Kentucky Teachers' Retirement System

and also become eligible to purchase as service credit his or her prior service

with his or her postsecondary education employer. This election to change

from the optional r etirement plan to the Kentucky Teachers' Retirement

System shall be effective beginning on the first day of the first month

immediately following the date that written application for the election is

received in the retirement system's office on forms pres cribed by the

retirement system. Persons electing to change from the optional retirement

plan to the Kentucky Teachers' Retirement System may purchase service

credit only for their prior years of service for a postsecondary education

institution identified in KRS 161.220(4)(b) during which they participated in

the optional retirement plan. The election to purchase prior service as service

credit shall be received in the retirement system's office on forms prescribed

by the retirement system within the six ( 6) year and six (6) month period

provided to make the election to begin participation in the Kentucky Teachers'

Retirement System. The cost of purchasing this service shall be calculated by

adding both the employer and member contributions that would have been

paid to the Kentucky Teachers' Retirement System had the individual

purchasing this service participated in the Kentucky Teachers' Retirement

System instead of the optional retirement plan, less the amount contributed to

the Kentucky Teachers' Retirem ent System by the postsecondary education

institution as provided by KRS 161.569(5), or KRS 161.569(5)(a)2. as it

existed on June 30, 2007. Interest at Kentucky Teachers' Retirement System's

actuarially assumed rate shall be paid on these net contributions by the person

electing to change to the Kentucky Teachers' Retirement System from the

optional retirement plan. These payments shall not be picked up as described

in KRS 161.540(2). Persons who elect to change from the optional retirement

plan to the Kent ucky Teachers' Retirement System may elect to purchase as

service credit, beginning with the most recent years, any portion of their prior

years of service during which time they participated in the optional retirement

plan, or none of those years. Members may purchase service credit for prior

years of service by rolling over funds from their optional retirement plan

account as provided under KRS 161.5461, or by rolling over or transferring

other plan funds as permitted by the rules set forth in the Interna l Revenue

Code, or by making an after-tax lump-sum cash payment;

(c) Effective July 1, 2008, persons otherwise eligible for membership in the

Kentucky Teachers' Retirement System may irrevocably elect one (1) time to

change their election and to prospectiv ely participate in the Kentucky

Teachers' Retirement System and purchase service credit for their prior years

of service during which they participated in the optional retirement plan. This

election shall be filed in writing with the Kentucky Teachers' Ret irement

System no later than December 31, 2008. Persons who change their election

prior to July 1, 2008, to prospectively participate in the Kentucky Teachers'

Retirement System may purchase service credit for their prior years of service

during which they participated in the optional retirement plan. The purchase

of prior years of service under this paragraph shall be subject to the same

conditions and purchase costs as described in paragraph (b) of this subsection,

except that the election to purchase ser vice credit shall be on file with the

Kentucky Teachers' Retirement System no later than December 31, 2008; and

(d) Persons electing to change to the Kentucky Teachers' Retirement System

under paragraphs (a), (b), and (c) of this subsection shall be eligib le to

participate, based upon their age and allowable service credit, in the disability,

survivorship, and medical insurance programs under the conditions and in the

degree as they exist on the date that they file their election with the retirement

system, but shall be subject to any changes to those programs from that date

forward, including any changes that may affect their eligibility for or degree of

participation in those programs. Prior service purchased as service credit as

permitted under paragraphs (b) and (c) of this subsection shall not be

considered for meeting eligibility requirements or determining the extent of

participation in these programs. Persons electing to change to the Kentucky

Teachers' Retirement System shall not be eligible for the survivorship or

disability programs based upon medical conditions that existed prior to the

filing of their elections.

(2) Elections of eligible employees hired on or after the implementation date of the

optional retirement plan at their employer instituti on shall be effective on the date

of their employment. If an eligible employee hired subsequent to the

implementation date at the employer institution fails to make the election provided

for in this section, the employee shall become a member of the regula r retirement

plan of the Kentucky Teachers' Retirement System.