{"data":{"id":"us-ky/krs-161.636","jurisdiction":"us-ky","citation":"KRS 161.636","heading":"Supplemental component for persons who became university members on","body":"or after January 1, 2022 -- Benefit -- Contributions -- Election upon\ntermination of employment and upon retirement -- Plans authorized under\nInternal Revenue Code.\n(1) An individual who becomes a university member of the Teachers' Retirement\nSystem on or after January 1, 2022, shall receive the retirement benefits provided\nby this section in addition to the retirement benefits provided under KRS 161.620.\nThe retirement benefits provided by this section shall be known as the supplemental\nbenefit component.\n(2) The supplemental benefit component shall provide a benefit based upon a member's\naccumulated account balance which shall include:\n(a) Mandatory contributions made by th e member as provided by KRS\n161.540(1)(d)2.;\n(b) Voluntary contributions made by the member, which may include lump -sum\npayments;\n(c) Mandatory contributions made by the employer as provided by KRS\n161.550(1)(e)2.;\n(d) Voluntary employer contributions; and\n(e) Regular interest, which shall be credited to the member's account annually on\nJune 30 of each fiscal year, by multiplying the member's accumulated account\nbalance in the supplemental benefit component on June 30 of the preceding\nfiscal year by the regular interest rate.\n(3) (a) Member contributions and employer contributions as provided by subsection\n(2)(a) to (d) of this section shall be credited to the member's account at least\nmonthly as contributions are reported and posted to the system in accorda nce\nwith KRS 161.560.\n(b) No employer contributions or interest shall  be provided to a member who has\ntaken a refund of his or her accumulated account balance as provided by KRS\n161.470 or who has retired and annuitized his or her accumulated account\nbalance as authorized by this section.\n(4) (a) Upon termination of employm ent, a member who has less than five (5) years\nof service credited under KRS 161.500, who elects to take a refund of his or\nher accumulated account balance as provided by KRS 161.470, shall forfeit\nthe accumulated employer contribution, and shall only rece ive a refund of his\nor her accumulated contributions.\n(b) Upon termination of employment, a member who has five (5) or more years\nof service credited under KRS 161.500, who elects to take a refund of his or\nher accumulated account balance as provided by KRS 161.470, shall receive a\nfull refund of his or her accumulated account balance.\n(5) A university member eligible to retire under KRS 161.600(2) may upon retirement,\nin addition to the other benefits provided by KRS 161.620, elect to:\n(a) Have all or a po rtion of his or her accumulated account balance in the\nsupplemental benefit component annuitized into a lifetime monthly retirement\nallowance by the system in accordance with the actuarial assumptions and\nactuarial methods adopted by the board for the supp lemental benefit\ncomponent and in effect on the member's retirement date;\n(b) Receive the actuarial equivalent of his or her retirement allowance calculated\nunder paragraph (a) of this subsection payable under one (1) of the options\nestablished by the board pursuant to KRS 161.630;\n(c) Take a distribution of the accumulated account balance in the supplemental\nbenefit component over a period certain as authorized by the board; or\n(d) Take a full or partial refund of his or her accumulated account balance as\nprovided by KRS 161.470.\nA member participating in the supplemental benefit component shall not be\nrequired to take a distribution or annuitize his or her accumulated account balance\nin the supplemental benefit component when he or she begins drawing a re tirement\nallowance from the foundational benefit component and may instead choose to\nbegin drawing a distribution or annuitize his or her accumulated account balance in\nthe supplemental benefit component at any date following his or her retirement date\nfrom the foundational benefit component.\n(6) This section only applies to individuals who become university members of the\nTeachers' Retirement System on or after January 1, 2022.\n(7) The board of trustees shall have the authority to utilize or establish any plan or\nplans authorized under the Internal Revenue Code to provide the benefits set forth\nin this section.","path":["KRS Chapter 161"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56069","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:11Z","sha256":"0d542c6ddb352df7d47f4b7d046861f4d9bde266a58ae2adc42515ca430681bf","source_id":"us-ky","stale":false,"prev":"us-ky/krs-161.635","next":"us-ky/krs-161.640"},"notice":"GroundRules: Original legal text. Not legal advice."}