KRS 67A.500: Withdrawal from service prior to retirement -- Refunds -- Forfeitures --

Repayment upon reemployment.

(1) Upon withdrawal from service prior to retirement, a member shall be entitled to

receive a refund of the amount of contributions made by the mem ber or picked up

by the urban -county government pursuant to KRS 67A.510(2) after the date of

establishment, without interest. Payments of picked up employee contributions shall

be subject to state and federal tax as appropriate.

(2) Any member receiving a refund of contributions shall thereby ipso facto forfeit,

waive, and relinquish all accrued rights and benefits in the system, including all

credited and creditable service. The board may, in its discretion, regardless of cause,

withhold payment of a refund for a period not to exceed six (6) months after receipt

of an application from a member.

(3) Any member who has received a refund shall be considered a new member upon

subsequent reemployment if such person qualifies for membership under KRS

67A.360 to 6 7A.690. Any member who is reemployed after withdrawing from

service and who received a refund of contributions shall, within ninety (90) days of

his reemployment or prior to retirement, whichever occurs first, make a repayment

to the system of the amount o r amounts previously received as a refund, including

interest at the rate determined by the board to be the actual rate of return on

investments made by the board, but not less than three percent (3%) per annum,

from the dates of the refund to the date of repayment, compounded annually. Upon

the restoration of such refunds, such member shall have reinstated to his account all

credited service represented by the refunds of which repayment has been made.

Repayment of refunds by any member shall include all re funds received by a

member prior to the date of his last withdrawal from service, with interest, and shall

be made in a single lump sum payment. Repayments shall not be picked up by the

urban-county government. If repayment is not made within the specified time

period, the member shall have forever forfeited, waived, and relinquished the right

to have reinstated to his account the credited service represented by the refunds for

which repayment was not made, but shall not be precluded from purchasing service

credit as provided in KRS 67A.402 if the member began participating in the fund

prior to March 14, 2013.

(4) Any member who has received, or who is entitled to receive, a refund, but who

within six (6) months of becoming entitled to receive such refund, q ualifies for

membership under the provisions of a fund in effect in another government adopted

pursuant to law, shall have the option of paying his refund into such other fund, in

which event he shall be deemed a member of such other fund and his account

therein shall be credited with all contributions, including those picked up pursuant

to KRS 67A.510(2), and service under his original fund.