KRS 61.535: Cessation of membership -- Conditions -- Forfeiture of retirement benefits.

(Effective April 1, 2021)

(1) The membership of any person in the system shall cease:

(a) Upon withdrawal of his accumulated account balance at or any time after

termination of employment, regardless of length of service;

(b) Upon disability retirement;

(c) Upon service retirement;

(d) Upon death;

(e) For persons hired prior to August 1, 2000, upon termination of employment

with prejudice; or

(f) For persons hired on or af ter August 1, 2000, upon conviction of a felony

relating to the person's employment as provided in subsection (3) of this

section.

(2) For purposes of KRS 61.510 to 61.705 and 16.505 to 16.652, termination of

employment with prejudice shall mean termination as the result of conviction of the

member in a court of competent jurisdiction of embezzlement or larceny of public

funds or property or malfeasance in office, or the forcing of a member to make

restitution for any funds or property criminally taken by s aid member at the time of

termination of employment.

(3) Notwithstanding any provision of law to the contrary, an employee hired on or after

August 1, 2000, who participates in one (1) of the retirement systems administered

by the Kentucky Retirement Syste ms and who is convicted, in any state or federal

court of competent jurisdiction, of a felony related to his employment shall forfeit

rights and benefits earned under the retirement system, except for the return of his

accumulated contributions and interes t credited on those contributions. The

payment of retirement benefits ordered forfeited shall be stayed pending any appeal

of the conviction. If the conviction is reversed on final judgment, no retirement

benefit shall be forfeited. The employer shall noti fy the retirement system when an

employee is convicted under the provisions of this subsection.