{"data":{"id":"us-ky/krs-161.640","jurisdiction":"us-ky","citation":"KRS 161.640","heading":"Payment of annuities -- Payroll deductions -- Electronic fund transfer,","body":"exception -- Payments to special needs trust.\n(1) Retirement annuities shall be payable monthly. The first payment to an annuitant\nshall be made at the payment date at the end of one (1) full payment period after his\nretirement and shall consist of one (1) regular monthly payment. Retirement for a\nmember receiving one (1) full year of service credit during a fiscal year shall be no\nearlier than July 1 next following the en d of such fiscal year. Notwithstanding any\nother statutory provisions to the contrary, members filling positions that\ncustomarily require twelve (12) months of service during a fiscal year cannot retire\nprior to July 1 without a corresponding pro rata redu ction in salary and service\ncredit. The board of trustees may determine which positions customarily require\ntwelve (12) months of service during a fiscal year.\n(2) The board of trustees may enter into agreements with retired members for payroll\ndeductions when it is deemed in the best interest of the retired members and the\nretirement system.\n(3) (a) All new retirees, on or after July 1, 1998, shall receive their monthly annuity\nchecks by electronic fund transfer. All retiree, beneficiary, and survivor\nmonthly allowance payments, except as otherwise provided in paragraph (b)\nor (c) of this subsection, shall be made by electronic fund transfer. Except as\nprovided in paragraph (b) or (c) of this subsection, all monthly payments shall\nbe made payable only to an  account solely in the name of the retiree,\nbeneficiary, or survivor as an individual and natural person, or to a joint\naccount in the name of the retiree, beneficiary, or survivor as an individual\nand natural person and another individual and natural person.\n(b) If the retiree, beneficiary, or survivor is a resident of a nursing or assisted-care\nhome, monthly payments may be made to the order of the nursing or assisted -\ncare home for the benefit of the retiree, beneficiary, or survivor by including\nthe retiree's, beneficiary's, or survivor's name. Monthly annuity checks so paid\nto a nursing or assisted -care home may be sent by mail rather than electronic\nfund transfer.\n(c) If the retiree, beneficiary, or survivor is the sole beneficiary of a special needs\ntrust:\n1. Monthly payments shall be made to the order of the special needs trust,\nand checks may be sent by mail to the special needs trust for the benefit\nof the retiree, beneficiary, or survivor;\n2. Upon the death of the retiree, beneficiary, or survivor o f a special needs\ntrust, the trustee of that trust shall notify the Teachers' Retirement\nSystem;\n3. Any payments made to a special needs trust that are not properly\npayable to the special needs trust shall be returned to the Teachers'\nRetirement System and shall not be subject to claims for reimbursement\nfrom any state for Medicaid benefits paid on behal f of the beneficiary\nunder any Medicaid payback provision, and any overpayments of\nretirement allowance received by the special needs trust shall be repaid\nto the Teachers' Retirement System; and\n4. The Teachers' Retirement System may promulgate administra tive\nregulations in accordance with KRS Chapter 13A to administer this\nparagraph.","path":["KRS Chapter 161"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57216","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:11Z","sha256":"f318a2b2b5cd5a1541abb3d1b0ae0273daa166f353ea9b239fb12679ef2c4d0f","source_id":"us-ky","stale":false,"prev":"us-ky/krs-161.636","next":"us-ky/krs-161.643"},"notice":"GroundRules: Original legal text. Not legal advice."}