Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
61.510,
61.522,
61.546,
61.552,
61.555,
61.565,
61.590,
61.598,
61.625,
61.637,
61.675,
78.510
- 78.852,
26 U.S.C.
401
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
61.645(9)(e) requires the
Board of Trustees of Kentucky Retirement Systems to promulgate administrative
regulations necessary or proper in order to carry out the provisions of
KRS
61.510 to
61.705,
and
78.510
to
78.852.
KRS
61.522 authorizes certain participating
employers in the Kentucky Employees Retirement System and the County Employees
Retirement System to voluntarily cease participation if that employer pays the
full actuarial cost of benefits accrued by its current and former employees.
KRS
61.522(8) requires the Board
to promulgate administrative regulations to administer the provisions of the
statute. This administrative regulation establishes the procedures and
requirements for voluntary cessation from participation in the Kentucky
Employees Retirement System and the County Employees Retirement System.
Section 1. Definitions.
(1) "Ceased employer" means an employer:
(a) Whose Form 7730, Application for
Voluntary Cessation from CERS or KERS, has been approved by Kentucky Retirement
Systems; and
(b) Who has paid the
full actuarial cost.
(2)
"Effective cessation date" means the last day of the Kentucky Employees
Retirement Systems' or the County Employees Retirement Systems' plan
year.
(3) "Plan year" means the
period beginning July 1 and ending June 30.
Section 2.
(1) An employer may request an estimate of
the actuarial cost of ceasing participation from Kentucky Employees Retirement
System or County Employees Retirement System. The request shall be made by
completing the Form 7725, Request for Estimated Actuarial Cost of Voluntary
Cessation.
(2) Kentucky Retirement
Systems shall provide the estimate of the cost as of the next available
cessation date.
(3) Kentucky
Retirement Systems shall provide the estimate of the cost based on the
information currently in its database and projecting the service and salary of
all active employees as if they remain employed and continue to earn the same
creditable compensation through the next available cessation date.
(4) The estimated actuarial cost of ceasing
participation shall not be binding on Kentucky Retirement Systems.
(5) The employer shall not rely on the
estimated actuarial cost of ceasing participation.
(6) Kentucky Retirement Systems shall notify
the employer of the administrative cost to process the Form 7725, Request for
Estimated Actuarial Cost of Voluntary Cessation. The administrative cost shall
be calculated as follows:
(a) If the number of
employees and former employees to be submitted to the actuary for purposes of
determining the estimated actuarial cost of voluntary cessation equals one (1)
to 100 employees, the administrative cost shall be $1,500.
(b) If the number of employees and former
employees to be submitted to the actuary for purposes of determining the
estimated actuarial cost of voluntary cessation equals 101 or more employees,
the administrative cost shall be $4,000.
(7) Kentucky Retirement Systems shall process
the Form 7725, Request for Estimated Actuarial Cost of Voluntary Cessation,
after the employer has remitted its payment for the administrative
cost.
Section 3.
(1) The governing body of an employer seeking
to cease participation in Kentucky Employees Retirement System or County
Employees Retirement System shall pass a resolution to voluntarily cease
participation in Kentucky Employees Retirement System or County Employees
Retirement System.
(2) The
resolution shall contain the following statements:
(a) That the employer has decided to
voluntarily cease participation in Kentucky Employees Retirement System or
County Employees Retirement System;
(b) That the employer acknowledges that the
employer is subject to the requirements and restrictions of
KRS
61.522 and this administrative
regulation;
(c) That the employer
acknowledges that in order to voluntarily cease participation in Kentucky
Employees Retirement System or County Employees Retirement System the employer
shall pay the full actuarial cost of withdrawal and all administrative
costs;
(d) That the employer
acknowledges that its employees will no longer earn service credit in Kentucky
Employees Retirement System or County Employees Retirement System for
employment with the employer after its approved effective cessation date from
Kentucky Employees Retirement System or County Employees Retirement System
under
KRS
61.522 and this administrative
regulation;
(e) That the employer
agrees to cooperate with Kentucky Retirement Systems to educate its employees
about the effect of the employer's cessation on the employees' retirement
accounts and the employees' options regarding their retirement accounts;
and
(f) That the employer shall not
mandate, force, or require its employees to take a refund of their accumulated
account balance as defined by
KRS
61.510(41) or
78.510(38)
or retaliate against its employees who chose not to take refunds of their
accumulated account balance as defined in
KRS
61.510(41) or
78.510(38).
Section 4.
(1) An employer seeking to cease
participation in Kentucky Employees Retirement System or County Employees
Retirement System shall file a completed Form 7730, Application for Voluntary
Cessation from CERS or KERS, with the executive director of Kentucky Retirement
Systems by December 31 during the plan year containing the employer's selected
effective cessation date.
(2) The
employer shall submit the following documents with its Form 7730, Application
for Voluntary Cessation from CERS or KERS:
(a)
The Resolution of the governing body of the employer resolving to voluntarily
cease its participation in Kentucky Employees Retirement System or County
Employees Retirement System;
(b)
The employer's Articles of Incorporation, if applicable;
(c) The employer's current by-laws, if
applicable;
(d) The employer's
Certificate of Existence/Authorization from the Kentucky Secretary of State, if
applicable;
(e) Documentation of
the alternative retirement program created by or being created by the employer
for its employees, such as a written description of the alternative retirement
program;
(f) The employer's most
recent five (5) audited financial statements and independent auditor's
reports;
(g) The employer's most
recent five (5) Consolidated Annual Financial Reports, if applicable;
and
(h) Documentation of the source
of the funds the employer intends to use to pay the full actuarial
cost.
(3) The employer
shall submit with its Form 7730, Application for Voluntary Cessation from CERS
or KERS, an encrypted electronic file listing each current and former full-time
employee as defined by
KRS
61.510(21) and
78.510(21)
who were employed during any time period the employer participated in Kentucky
Employees Retirement System or County Employees Retirement System, containing:
(a) Full name;
(b) Last known address;
(c) Date of birth;
(d) Social security number or Kentucky
Retirement Systems member identification number;
(e) Beginning date of employment;
(f) Date employment ended, if
applicable;
(g) Sick leave
balance;
(h) Beginning and ending
dates of any active duty military service when the employee was not employed by
the employer filing the Form 7730, Application for Voluntary Cessation from
CERS or KERS, if available; and
(i)
Beginning and ending dates of any active duty military service when the
employee was employed by the employer filing the Form 7730, Application for
Voluntary Cessation from CERS or KERS.
(4) The employer shall submit with its Form
7730, Application for Voluntary Cessation from CERS or KERS, a list of pending
lawsuits, legal actions, arbitrations, mediations, and other litigation to
which the employer is a party including:
(a)
Name of the case;
(b) The case
number;
(c) The name and address of
the court, arbitrator, mediator, or administrative agency in which the case is
pending; and
(d) A copy of the
complaint or a description of the allegations made in the complaint as well as
the type and amount of relief sought by the plaintiff or plaintiffs.
(5) Kentucky Retirement Systems
shall not accept or continue processing a Form 7730, Application for Voluntary
Cessation from CERS or KERS, for an employer who:
(a) Has not paid or otherwise resolved all
its outstanding invoices with Kentucky Retirement Systems;
(b) Has reporting that is not correct in
accordance with
KRS
61.675,
78.625,
and
105 KAR
1:140; or
(c) Is a party to pending legal action in
which Kentucky Retirement Systems is an adverse party and the result of which
may affect the accounts of the employer's employees, the employer's full
actuarial cost of ceasing participation, or the amount of employer
contributions owed by the employer.
(6) The Board of Trustees of Kentucky
Retirement Systems shall accept or reject the Form 7730, Application for
Voluntary Cessation from CERS or KERS, for processing prior to the effective
cessation date following submission of the Form 7730, Application for Voluntary
Cessation from CERS or KERS.
Section
5.
(1) The employer shall pay the
administrative costs incurred by Kentucky Retirement Systems for processing the
employer's Form 7730, Application for Voluntary Cessation from CERS or
KERS.
(2) The employer shall pay
$10,000 as a deposit with the Form 7730, Application for Voluntary Cessation
from CERS or KERS.
(3) Kentucky
Retirement Systems shall place the deposit in a designated account and shall
utilize the funds to pay the administrative costs of processing the employer's
Form 7730, Application for Voluntary Cessation from CERS or KERS.
(4) Kentucky Retirement Systems shall
maintain records of all costs associated with the processing of the employer's
Form 7730, Application for Voluntary Cessation from CERS or KERS, including:
(a) The cost of compensation and benefits of
Kentucky Retirement Systems' employees computed on an hourly basis;
(b) Fees incurred by Kentucky Retirement
Systems for use of external professional services; and
(c) The costs of postage, printing, and other
expenses incurred by Kentucky Retirement Systems.
(5) Kentucky Retirement Systems shall
calculate its total administrative costs and send an invoice to the employer
either after the employer gives notice to Kentucky Retirement Systems pursuant
to Section 10(3) of this administrative regulation or following withdrawal of
the employer's Form 7730, Application for Voluntary Cessation from CERS or
KERS.
(a) Kentucky Retirement Systems shall
apply the deposit received pursuant to subsection (2) of this section to any
administrative costs incurred by Kentucky Retirement Systems as a result of the
employer seeking to utilize the provisions of
KRS
61.522.
(b) Following the application of the deposit
to the outstanding administrative costs, Kentucky Retirement Systems shall
submit an invoice to the employer for the additional administrative costs and
the employer shall pay the invoice for the remaining administrative costs
within thirty (30) days of the date of the invoice.
(6)
(a) If
the total administrative cost is less than the deposit paid by the employer,
Kentucky Retirement Systems shall apply the remaining balance of the deposit to
the:
1. Full actuarial cost if the employer
gives notice of its intention to proceed with the voluntary withdrawal pursuant
to Section 10(3) of this administrative regulation; or
2. Amount owed by the employer to Kentucky
Retirement Systems for continued participation if the employer gives notice of
its intention not to proceed with the voluntary withdrawal pursuant to Section
10(3) of this administrative regulation.
(b) Kentucky Retirement Systems shall refund
any remaining balance to the employer after the amounts due pursuant to
paragraph (a) of this subsection have been satisfied.
(7) The Board of Trustees of Kentucky
Retirement Systems shall not consider the employer's Form 7730, Application for
Voluntary Cessation from CERS or KERS, until the employer has paid all the
administrative costs incurred by Kentucky Retirement Systems.
(8) The costs paid pursuant to this section
shall not be refunded to the employer if the employer withdraws its
application.
Section 6.
(1) Kentucky Retirement Systems shall make
reasonable efforts to notify each employee identified on the list provided by
the employer that the employer has filed a Form 7730, Application for Voluntary
Cessation from CERS or KERS, to voluntarily cease participating in County
Employees Retirement System or Kentucky Employees Retirement System.
(2) Kentucky Retirement Systems shall provide
notice informing the employee of the employee's right to request an irrevocable
refund, pursuant to
KRS
61.522(3)(a) 5., of their
accumulated account balance as defined in
KRS
61.510(41) or
78.510(38)
within sixty (60) days of the employer's effective cessation date by submitting
a completed Form 1500,
KRS
61.522 60-Day Transfer Request, to Kentucky
Retirement Systems. The notice shall be sent at least ten (10) days prior to
the employer's effective cessation date.
(a)
Kentucky Retirement Systems shall send the notice to the active employees
listed by the employer who has filed a Form 7730, Application for Voluntary
Cessation from CERS or KERS, on its most recent report required by
KRS
61.675 or
78.625
filed prior to the date the notices required by
KRS
61.522 are mailed.
(b) The employer shall submit the name and
contact information of each employee it hires between the date the employer
filed its Form 7730, Application for Voluntary Cessation from CERS or KERS, and
the employer's effective cessation date within five (5) days of the date the
employee begins working for the ceasing employer.
(c) A Form 1500,
KRS
61.522 60-Day Transfer Request, submitted on
or before the employer's effective cessation date shall be void.
(d) A Form 1500,
KRS
61.522 60-Day Transfer Request, submitted
after the last day of the sixty (60) day refund period shall be void.
(e) The employee shall be employed by the
employer who has filed a Form 7730, Application for Voluntary Cessation from
CERS or KERS, on the employer's effective cessation date to be eligible to
request a refund of his accumulated account balance pursuant to
KRS
61.522(3)(a) 5.
(f) If the employee requests a refund of his
accumulated account balance pursuant to
KRS
61.522(3)(a) 5., the
employee's accumulated account balance shall be transferred to the employer's
alternative retirement plan pursuant to this section even if the employee
terminates employment with the employer prior to the date the Board of Trustees
of Kentucky Retirement Systems has approved the employer's Form 7730,
Application for Voluntary Cessation from CERS or KERS, and the employer has
become a ceased employer.
(3)
(a) The
employer who has filed a Form 7730, Application for Voluntary Cessation from
CERS or KERS, shall establish an alternative retirement plan that is a
qualified plan pursuant to
26 U.S.C.
401 on or before the expiration of the sixty
(60) day refund period provided in
KRS
61.522(3)(a) 5.
(b) The employer shall submit verification
that it has established an alternative retirement plan that is a qualified plan
pursuant to
26 U.S.C.
401.
(c) Kentucky Retirement Systems shall accept
one (1) of the following as verification that the employer has established an
alternative retirement plan that is a qualified plan pursuant to
26 U.S.C.
401:
1. A
determination letter from the Internal Revenue Service providing that the
alternative retirement plan established by the employer is a qualified plan
pursuant to
26 U.S.C.
401;
2. A letter from the employer's legal counsel
certifying that the alternative retirement plan established by the employer is
intended as a qualified plan pursuant to
26 U.S.C.
401 capable of accepting trustee to trustee
transfers; or
3. Other reliable
verification as determined by Kentucky Retirement Systems.
(d) Refunds requested pursuant to
KRS
61.522(3)(a) 5. shall be
transferred to the alternative retirement plan established by the employer who
has filed a Form 7730, Application for Voluntary Cessation from CERS or KERS,
by trustee to trustee transfer after the Board of Trustees of Kentucky
Retirement Systems has approved the employer's Form 7730, Application for
Voluntary Cessation from CERS or KERS, and the employer has become a ceased
employer.
1. The alternative retirement plan
shall accept and separately account for post-tax employee
contributions.
2. The employer's
legal counsel shall provide written certification that its alternative
retirement plan shall accept and separately account for post-tax employee
contributions.
(e) If
the employer who has filed a Form 7730, Application for Voluntary Cessation
from CERS or KERS, fails to establish an alternative retirement plan pursuant
to paragraph (a) of this subsection or refuses to accept and separately account
for post-tax employee contributions, the refund requests pursuant to
KRS
61.522(3)(a) 5. shall be
void. The employees who filed the refund requests pursuant to
KRS
61.522(3)(a) 5. shall remain
members of the system and shall be included in the full actuarial
cost.
(4) The employer
shall not mandate, force, or require its employees to take a refund of their
accumulated account balance as defined in
KRS
61.510(41) or
78.510(38)
or retaliate against any employee who does not take refund of their accumulated
account balance as defined by
KRS
61.510(41) or
78.510(38).
(5) Former employees of the ceased employer
who are currently participating in the State Police Retirement System, County
Employees Retirement System, or Kentucky Employees Retirement System, due to
employment with a participating agency, shall not be eligible to take a refund
of their accumulated account balance until terminating employment with the
participating employer.
(6) Current
employees of the employer who are also employed by another employer
participating in the State Police Retirement System, County Employees
Retirement System, or Kentucky Employees Retirement System shall not be
eligible to take a refund of their accumulated account balance.
(7) Current employees of the employer on its
effective cessation date may request a refund pursuant to
KRS
61.522(3)(a) 5.
(8) Former employees of the employer who are
not participating in State Police Retirement System, County Employees
Retirement System, or Kentucky Employees Retirement System shall not be
eligible to take a refund of their accumulated account balance pursuant to
KRS
61.522(3)(a)
5.
Section 7.
(1) The employer shall continue to file
reports in accordance with
KRS
61.675,
78.625,
and
105 KAR
1:140 after the employer's effective cessation date
until the Form 7730, Application for Voluntary Cessation from CERS or KERS, is
approved by the Board of Trustees of Kentucky Retirement Systems and the
employer becomes a ceased employer.
(2) The employer shall continue to remit
employer contributions in accordance with
KRS
61.675,
78.625,
and
105 KAR
1:140 after the effective cessation date until the
Form 7730, Application for Voluntary Cessation from CERS or KERS, is finally
approved by the Board of Trustees of Kentucky Retirement Systems and the
employer becomes a ceased employer.
(a)
1. Kentucky Retirement Systems shall hold the
employer contributions until the Form 7730, Application for Voluntary Cessation
from CERS or KERS, is finally approved by the Board of Trustees of Kentucky
Retirement Systems and the employer becomes a ceased employer.
2. Kentucky Retirement Systems shall credit
the entire sum of the employer contributions remitted pursuant to this section
to the employer's full actuarial cost.
(b) If the employer does not become a ceased
employer because it withdraws its Form 7730, Application for Voluntary
Cessation from CERS or KERS, or if its Form 7730, Application for Voluntary
Cessation from CERS or KERS, is rejected by the Board of Trustees of Kentucky
Retirement Systems, the employer contributions remitted pursuant to this
subsection shall be credited towards any outstanding contributions owed for its
continued participation in Kentucky Employees Retirement System or County
Employees Retirement System while the Form 7730, Application for Voluntary
Cessation from CERS or KERS, was pending.
(c) Kentucky Retirement Systems shall refund
any remaining balance to the employer after the amounts due pursuant to
paragraphs (a) and (b) of this subsection have been satisfied.
(3)
(a) If the employer's Form 7730, Application
for Voluntary Cessation from CERS or KERS, is withdrawn by the employer or is
rejected by the Board of Trustees of Kentucky Retirement Systems, the employer
shall resume withholding employee contributions effective the month after the
month in which the Form 7730, Application for Voluntary Cessation from CERS or
KERS, was withdrawn or rejected.
(b) Pursuant to
KRS
61.552(20), if the
employer's Form 7730, Application for Voluntary Cessation from CERS or KERS, is
withdrawn by the employer or is rejected by the Board of Trustees of Kentucky
Retirement Systems, Kentucky Retirement Systems shall provide notice to each
employee of the amount of employee contributions due to Kentucky Retirement
Systems for the time period between the employer's proposed effective cessation
date and the date the Form 7730 was withdrawn or rejected.
(c) The employee shall not receive service
credit for the period between the employer's proposed cessation date and the
date the Form 7730, Application for Voluntary Cessation from CERS or KERS, was
withdrawn or rejected, if the employee does not pay the employee contributions
to Kentucky Retirement Systems.
(4)
(a) If
a member who is an employee of the employer that has filed a Form 7730,
Application for Voluntary Cessation from CERS or KERS, files for disability
retirement benefits while the employer's Form 7730, Application for Voluntary
Cessation from CERS or KERS is pending, Kentucky Retirement Systems shall use
the employer's proposed effective cessation date as the member's last day of
paid employment if the member has not established a last day of paid employment
prior to the employer's effective cessation date.
(b) If the employer's Form 7730, Application
for Voluntary Cessation from CERS or KERS, is withdrawn by the employer or
rejected by the Board of Trustees of Kentucky Retirement Systems, Kentucky
Retirement Systems shall determine the member's last day of paid employment
pursuant to
KRS
61.510(32) if the member has
paid the employee contributions due.
(c) If an employee does not pay the employee
contributions due, the first day of the month the employer resumes withholding
employee contributions shall be a reemployment date for purposes of determining
eligibility for disability retirement benefits.
(5) The employer shall continue to pick-up
payments for installment purchase of service for any employee who is purchasing
service pursuant to
KRS
61.552(14) and
105 KAR
1:150.
(a) The
employee shall have sixty (60) days from the date the employer's Form 7730,
Application for Voluntary Cessation from CERS or KERS, is finally approved by
the Board of Trustees of Kentucky Retirement Systems and the employer becomes a
ceased employer to pay in full any outstanding balance on the installment
purchase agreement pursuant to
KRS
61.552(14) and
105 KAR
1:150.
(b)
If the employer's Form 7730, Application for Voluntary Cessation from CERS or
KERS, is withdrawn by the employer or is rejected by the Board of Trustees of
Kentucky Retirement Systems, the employee's installment purchase of service
agreement shall remain in effect.
(6)
(a) The
four (4) percent employer pay credit and applicable interest accrued while
employed with a ceased employer shall vest as of the effective cessation date
for those employees who began participating on or after January 1,
2014.
(b) Employees of the ceased
employer who began participating on or after January 1, 2014, shall not be
vested in the four (4) percent employer pay credit or applicable interest
attributable to the time the employee was employed with an employer other than
the ceased employer.
Section
8.
(1) Employees of an employer
that has submitted a Form 7730, Application for Voluntary Cessation from CERS
or KERS, shall comply with the provisions of
KRS
61.590,
61.625,
and
61.637.
(2) Employees of a ceased employer shall
terminate employment with all participating employers of the State Police
Retirement System, County Employees Retirement System, Kentucky Employees
Retirement System, and the ceased employer prior to retiring pursuant to
KRS
61.590 or taking a refund pursuant to
KRS
61.625.
(3)
(a)
Employees of a ceased employer shall comply with
KRS
61.637 and
105
KAR 1:390 after retirement.
(b) The ceased employer shall certify that
the employee seeking to retire or take a refund is terminating employment or
has terminated employment with no prearranged agreement to return to work for
the ceased employer.
Section
9.
(1) Employees shall receive
service credit for sick leave accrued pursuant to
KRS
61.546 or
78.616
as of the effective cessation date.
(a) If
the employer participates in a sick leave program established in
KRS
61.546 or
78.616,
the employer shall report to Kentucky Retirement Systems the number of hours of
each employee's accumulated sick leave as of the effective cessation
date.
(b) Kentucky Retirement
Systems shall credit the months of sick leave service reported pursuant to this
section to the employee's total service credit to determine the employer's full
actuarial cost.
(2)
Kentucky Retirement Systems shall credit the months of military service
pursuant to
KRS 61.555(1) and
(2) prior to the employer's effective
cessation date and include the months in the calculation of the employer's full
actuarial cost.
Section
10.
(1) The employer shall pay
or otherwise resolve all its invoices and correct all reporting in accordance
with
KRS
61.675,
78.625,
and
105 KAR
1:140 by August 31 after the effective cessation
date.
(2) Kentucky Retirement
Systems shall provide the employer with the amount of the full actuarial cost
by sending a notice of actuarial cost and the report of the actuary to the
employer.
(3) The employer shall
notify Kentucky Retirement Systems in writing of its decision to voluntarily
cease participation or withdraw the Form 7730, Application for Voluntary
Cessation from CERS or KERS, within sixty (60) days of the date of the notice
of actuarial cost.
(4) The employer
shall submit the final plan documents for its alternative retirement program
with its notification if it intends to cease participation.
(5) The Board of Trustees of Kentucky
Retirement Systems shall not consider the employer's Form 7730, Application for
Voluntary Cessation from CERS or KERS, until the employer has paid all the
administrative costs incurred by Kentucky Retirement Systems, pursuant to
Section 5 of this administrative regulation.
(6) After the employer has paid all the
administrative costs, the Board of Trustees of Kentucky Retirement Systems
shall approve or reject the employer's Form 7730, Application for Voluntary
Cessation from CERS or KERS.
Section
11.
(1) The ceased employer shall
pay the full actuarial cost of benefits accrued by its current and former
employees by lump sum payment within thirty (30) days of the date the Board of
Trustees of Kentucky Retirement Systems approves its application.
(2) If the employer's Form 7730 has not
received final approval by the Board of Trustees of Kentucky Retirement Systems
or the ceasing employer has not paid the full actuarial cost by lump sum within
thirty (30) days of the date of the Board of Trustees of Kentucky Retirement
Systems' final approval of its application, the employer's Form 7730 shall be
void.
Section 12.
(1) A person eligible to purchase service
credit pursuant to
KRS
61.552 related to employment with the ceasing
employer, must either complete the purchase or enter into a service purchase
agreement with Kentucky Retirement Systems no later than the employer's
effective cessation date.
(2)
Pursuant to
KRS
61.552, current and former employees shall
not be eligible to purchase service credit related to employment with a ceased
employer after the employer's effective cessation date.
(3) A person may purchase service credit
pursuant to
KRS
61.552(20) if the service is
not related to employment with the ceased employer.
(4) A former employee of a ceased employer
who becomes employed with a participating employer after terminating employment
with the ceased employer may purchase service credit pursuant to
KRS
61.552 that is not related to employment with
a ceased employer.
(5) An
employee's eligibility to purchase service credit pursuant to
KRS
61.552 shall be reinstated if the employer's
Form 7730, Application for Voluntary Cessation from CERS or KERS, is withdrawn
by the employer or rejected by the Board of Trustees of Kentucky Retirement
Systems.
Section 13.
(1) If an employer files legal action against
Kentucky Retirement Systems regarding the provisions of
KRS
61.522 or this administrative regulation, the
employer shall pay all administrative costs and legal fees incurred by Kentucky
Retirement Systems if the employer's legal action against Kentucky Retirement
Systems is unsuccessful or is dismissed for any reason other than by the
agreement of the parties.
(2) The
Board of Trustees of Kentucky Retirement Systems shall not approve or deny the
employer's Form 7730, Application for Voluntary Cessation from CERS or KERS,
until the legal action is resolved.
Section 14. If any due date or time period
deadline provided in
KRS
61.522 or this administrative regulation
falls on a Saturday, Sunday, or day that Kentucky Retirement Systems is closed
due to state holiday, the due date or time period deadline shall extend to the
close of business of the next business day.
Section 15. Incorporation by Reference.
(1) The following material is incorporated by
reference:
(a) Form 7725, "Request for
Estimated Actuarial Cost of Voluntary Cessation", October 2015;
(b) Form 7730, "Application for Voluntary
Cessation from CERS or KERS", July 2018; and
(c) Form 1500, "KRS
61.522 60-Day Transfer Request", March
2016.
(2) This material
may be inspected, copied, or obtained, subject to applicable copyright law, at
the Kentucky Retirement Systems, Perimeter Park West, 1260 Louisville Road,
Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m.
STATUTORY AUTHORITY:
KRS
61.522(8),
61.645(9)(e)