KRS 161.612: Membership of individuals providing part -time and substitute services --

Service credit -- Participation in benefits.

Effective July 1, 2002, any individual occupying a position on a part -time basis that

requires certification or graduation f rom a four (4) year college or university as a

condition of employment and any individual providing part -time or substitute teaching

services that are the same or similar to those teaching services provided by certified, full -

time teachers shall be a membe r of the Teachers' Retirement System, according to the

conditions and only to the extent set forth in this section, if the individual is employed by

one (1) of the public boards, institutions, or agencies set forth in KRS 161.220, excluding

those public bo ards, institutions, and agencies described in KRS 161.220(4)(b) and (n).

Members providing part -time and substitute services shall participate in the retirement

system as follows:

(1) Members providing part -time and substitute services shall accrue service credit as

provided under KRS 161.500 and be entitled to a retirement allowance upon

meeting the service retirement conditions of KRS 161.600. The board of trustees

shall adopt a methodology for accrediting service credit to these members on a pro

rata basis. The methodology adopted by the board of trustees may be amended as

necessary to ensure its actuarial soundness. The retirement allowance for members

providing part -time and substitute services shall be calculated pursuant to KRS

161.620 and 161.635 or 161.636, as applicable, except that the provisions of KRS

161.620(3) shall not apply. Members providing part -time and substitute services

who meet the service retirement conditions of KRS 161.600 may also be eligible to

participate as approved by the board of trustees in the medical insurance program

provided by the retirement system under KRS 161.675. Members providing part -

time and substitute services shall make contributions to the Teachers' Retirement

System at the rate provided under KRS 161.540. A mem ber who provides part-time

or substitute services, or in the event of the death of the member, the member's

estate or applicably designated beneficiary, will be entitled, within ninety (90) days

of the posting of the annual report submitted by the member's employer, to a refund

of contributions as permitted and limited by KRS 161.470;

(2) (a) 1. The board of trustees shall adopt eligibility conditions under which

members providing part -time and substitute services may participate in

the benefits provided un der KRS 161.520, 161.655, 161.661, and

161.663.

2. For all disability retirement applications filed with the Teachers'

Retirement System on or after July 1, 2021, disability retirement

payments and any other recurring payments payable by any other state -

administered retirement system to members providing part -time or

substitute services shall be applied to reduce, on a dollar -for-dollar

basis, the minimum monthly disability retirement allowance of five

hundred dollars ($500) provided for under KRS 161.661(6).

3. Effective July 1, 2021, members providing part -time or substitute

services shall not be eligible to apply for a disability retirement

allowance if they are eligible for a service retirement allowance that is

not subject to an actuarial reduction req uired under KRS 161.600(1)(b)

or (d).

(b) The board of trustees may permit members providing part -time or substitute

services to participate in other benefits offered by the retirement system by

promulgating administrative regulations that establish eligib ility conditions

for participation in these benefits. All eligibility conditions adopted by the

board of trustees pursuant to this subsection may be amended as necessary to

ensure their actuarial soundness;

(3) In addition to the pro rata methodology adopted by the board of trustees under

subsection (1) of this section, members providing part -time and substitute services

shall be subject to all limitations and conditions regarding the accrual, retention,

accreditation, and use of service credit that apply to members providing full -time

services. In addition to the eligibility conditions set forth by the board of trustees

under subsection (2) of this section, members providing part -time and substitute

services shal l be subject to all limitations and conditions regarding both the

eligibility to participate and the extent of participation in any benefit offered under

KRS 161.220 to 161.716 that apply to members providing full-time services;

(4) Notwithstanding any oth er provisions of this section to the contrary, instructional

assistants who provide teaching services in the local school districts on a full -time

basis in positions covered by the County Employees Retirement System who are

used as substitute teachers on a n emergency basis for five (5) days or less during

any one (1) fiscal year shall not be considered members of the Teachers' Retirement

System during that period in which they are serving as substitute teachers for five

(5) days or less;

(5) The board of tr ustees may adopt a pro rata methodology to determine the annual

compensation of members providing part -time and substitute services in order to

determine benefits provided under KRS 161.661 and 161.663. Members providing

part-time and substitute services w ho had retirement contributions posted to their

accounts during the previous fiscal year and who have not had those contributions

refunded to them are eligible to vote for the board of trustees;

(6) The board of trustees of the Teachers' Retirement System shall be responsible for

final determination of membership eligibility and may direct employers to take

whatever action that may be necessary to correct any error relating to membership;

and

(7) The provisions of this section are not subject to KRS 161.714.