{"data":{"id":"us-ky/krs-61.625","jurisdiction":"us-ky","citation":"KRS 61.625","heading":"Refund of account balance or contributions.","body":"(1) (a) Prior to the member's effective retirement date, a member if living, or if not\nliving, his or her designated beneficiary, shall have the right to request a\nrefund of his or her accumulated account balance if the member's employment\nhas been terminated and the member is not participating in the same system.\n(b) Upon the death of a member occurring on or after his or her effective\nretirement date, the member's beneficiary shall have the right to request a\nrefund of the member's accumulated contributions, redu ced by the amount of\nany retirement allowances previously received.\n(c) If a member receives a refund of his or her accumulated account balance in\nerror while the member is employed or participating in the same system from\nwhich the refund was issued in error:\n1. The Authority shall notify the member;\n2. The member shall repay the system the full amount of his or her\nrefunded accumulated account balance by lump sum or by incremental\npayments made under an incremental payment agreement with the\nAuthority within twelve (12) months of the date the Authority sent the\nnotice; and\n3. Upon full repayment of the accumulated account balance to the system,\nthe Authority shall reinstate the member's previous membership date\nand associated service credit and take all ot her actions necessary to\ncorrect the member's records to reflect the reinstated membership date in\naccordance with KRS 61.685.\n(2) Payments made under this section shall be in lieu of any other benefits due for the\nperiod of service under any of the provis ions of KRS 16.505 to 16.652, 61.510 to\n61.705, and 78.510 to 78.852, unless the period of service is regained as provided\nunder KRS 61.552. Payments of taxable distributions made pursuant to this section\nshall be subject to state and federal tax as appropriate.\n(3) A refund of contributions of members whose benefits have been terminated\npursuant to KRS 6.696 shall be governed by that section.\n(4) A refund of contributions to members whose benefits have been terminated\npursuant to KRS 61.535(3) shall be governed by the provisions of that subsection.\n(5) If a member receives a refund of his or her accumulated account balance under\nsubsection (1) of this section, but is later reinstated without loss of pay by order of\nthe Personnel Board under KRS 18A.095, by order of the Kentucky Commission on\nHuman Rights, or by court order:\n(a) The member shall repay the system the full amount of his or her refunded\naccumulated account balance by lump sum or by incremental payments made\nunder an incremental payment agreement with the A uthority within twelve\n(12) months of the date of the final order by the Personnel Board, the\nKentucky Commission on Human Rights, or the court;\n(b) Upon full repayment of the accumulated account balance to the system, the\nAuthority shall reinstate the mem ber's previous membership date and\nassociated service credit; and\n(c) A member's failure to pay the full amount of his or her refunded accumulated\naccount balance as required under this subsection shall be treated as an\noverpayment of benefits under KRS 61.685.","path":["KRS Chapter 61"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=54855","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:15Z","sha256":"e4559f10cd9f17b8698448bf56f8719a10642f37dab06af878d5287034f1970d","source_id":"us-ky","stale":false,"prev":"us-ky/krs-61.623","next":"us-ky/krs-61.626"},"notice":"GroundRules: Original legal text. Not legal advice."}