Current through Register Vol. 50, No. 6, December 1, 2023
RELATES TO:
KRS
16.576,
16.577,
16.645,
61.590,
61.595,
61.623,
61.637,
61.680,
61.705,
78.545,
26 U.S.C.
401(a), 26 C.F.R. 1.401-1,
1.401(a)-1
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,
16.505
to
16.652,
and
78.510
to
78.852.
KRS
61.590(1) requires that a
member or beneficiary eligible to receive retirement benefits have on file at
the retirement office each form required by the board. This administrative
regulation establishes the procedures and forms for application for and receipt
of retirement benefits by members of the Kentucky Retirement Systems.
Section 1.
(1)
(a) The
member shall submit a Form 6000, Notification of Retirement, to the retirement
systems no earlier than six (6) months prior to the member's desired effective
retirement date. The retirement systems shall not process an invalid Form 6000,
Notification of Retirement. If the member submits a Form 6000, Notification of
Retirement, that is incomplete or is incorrect, the retirement systems shall
find the Form 6000, Notification of Retirement, to be invalid and shall notify
the member of the actions necessary for completion or correction.
(b) The retirement systems shall not process
a Form 6000, Notification of Retirement, until the member certifies on the Form
6000 that there is no prearranged agreement for reemployment with a
participating employer after the member's initial retirement date as required
by
KRS
61.637,
26 U.S.C.
401(a), 26 C.F.R. 1.401-1,
and 1.401(a)-1.
(2) The
member shall designate the beneficiary of the member's retirement allowance on
the Form 6000, Notification of Retirement.
(3) The Form 6000, Notification of
Retirement, shall be dated and the member's signature shall be
witnessed.
(4)
(a) The member shall designate on the Form
6000, Notification of Retirement, all other state administered retirement
systems from which the member is simultaneously retiring with
reciprocity.
(b) If the member
fails to retire from all state administered retirement systems simultaneously
or with an effective retirement date within one (1) month of the member's
effective retirement date in the Kentucky Employees Retirement System, the
County Employees Retirement System, or the State Police Retirement System, the
member shall not retire with reciprocity after the member's effective
retirement date.
(5)
(a) The member may designate a federal tax
withholding preference on the Form 6000, Notification of Retirement.
(b) If the member fails to designate a
federal tax withholding preference, the retirement systems shall withhold
federal tax based on married status with three (3) exemptions.
(c) A recipient of a monthly retirement
allowance may submit a Form 6017, Federal Income Tax Withholding Preference for
Periodic Payments to establish or change the recipient's federal tax
withholding preference.
(d) A
recipient of a monthly retirement allowance may establish or change the
recipient's tax withholding preference via Retiree Self Service on the Web site
maintained by Kentucky Retirement Systems.
(6)
(a) The
member may designate a beneficiary of the $5,000 Death Benefit on the Form
6000, Notification of Retirement.
(b) A retired member may file a Form 6030,
Death Benefit Designation, to designate or change the beneficiary of the $5,000
death benefit at any time after the retired member begins receiving a monthly
retirement allowance.
(c) If the
member does not designate a beneficiary of the $5,000 death benefit, the
member's estate shall be the beneficiary.
(d) If the member files a Form 6030, Death
Benefit Designation, to change the beneficiary of the $5,000 death benefit that
is incomplete or incorrect, the member's beneficiary designation on file at the
retirement office shall remain in effect.
(7)
(a) The
member shall authorize the direct deposit of the member's retirement allowance
on the Form 6000, Notification of Retirement.
(b) The member shall attach to the Form 6000,
Notification of Retirement:
1. A voided
personalized check for the account to which the retirement allowance is being
deposited; or
2. Verification from
the financial institution receiving the electronic fund transfer.
(c) A recipient of a monthly
retirement allowance may change the designated financial institution or account
by filing a Form 6130, Authorization for Deposit of Retirement Payment, at the
retirement office in Frankfort.
(d)
A recipient of a monthly retirement allowance may establish or change the
recipient's designated financial institution or account via Retiree Self
Service on the Web site maintained by Kentucky Retirement Systems.
(e) The member shall submit a Form 6135,
Request for Payment by Check, if the member does not currently have an account
with a financial institution or the member's financial institution does not
participate in the electronic funds transfer program.
(8)
(a) The
member's employer shall complete Section H of the Form 6000, Notification of
Retirement. If the employer does not complete Section H of the Form 6000,
Notification of Retirement, the retirement systems shall only utilize the
information reported by the member's employer and former employers to the
retirement systems in accordance with
KRS
61.675 and
78.625
and shall not include any additional sick leave, compensatory time, or
projected salary increases in its calculations of the member's retirement
allowance or eligibility to retire.
(b) Section H of the Form 6000, Notification
of Retirement, shall be signed by a person designated by the employer on file
at the retirement office.
Section 2.
(1)
(a) The
member shall provide the retirement systems with a copy of the member's birth
certificate or other verification of date of birth of the member and, if a
survivorship payment option is selected, a copy of the birth certificate or
other verification of date of birth of the beneficiary named on the member's
Form 6000, Notification of Retirement.
(b) If the member's or beneficiary's name is
no longer the same as the name listed on the birth certificate or other
verification of date of birth, the systems shall require the member or
beneficiary to submit a marriage license, court order, or legally-binding
documentation of the name change.
(2) The retirement systems shall accept one
(1) or more of the following as proof of date of birth of the member or
beneficiary:
(a) Age record of the Social
Security Administration;
(b)
Immigration and naturalization service records;
(c) Birth certificate;
(d) Military discharge;
(e) U.S. passport;
(f) Driver's license issued by the
Commonwealth of Kentucky; or
(g)
Other reliable proof of date of birth that may be used by the courts to verify
the person's date of birth.
Section 3.
(1) The retirement systems shall provide an
estimate of the member's retirement allowance based on the salary reported to
the systems and information provided by the member's employer.
(2) The payment options and amounts available
to the member shall be printed on the Form 6010, Estimated Retirement
Allowance, and provided to the member with a place to designate the member's
choice of payment option.
(3)
(a) The member shall designate a desired
payment option and sign and date the Form 6010, Estimated Retirement
Allowance.
(b) The member's
signature on the Form 6010, Estimated Retirement Allowance, shall be witnessed
and the Form 6010, Estimated Retirement Allowance, returned to the retirement
office as required by subsection (4)(b) or (5) of this section.
(4)
(a) The member shall terminate employment
with all employers participating in the Kentucky Employees Retirement System,
the County Employees Retirement System, and the State Police Retirement System
no later than the month before the member's effective retirement date if the
member is retiring pursuant to
KRS
61.590(5)(a) or
(c).
(b) The retirement office shall process the
first payment in the month following the month in which the completed Form
6010, Estimated Retirement Allowance, and all other applicable forms and
documents as provided in this administrative regulation, have been filed at the
retirement office but not before the member's effective retirement
date.
(5) If the member
is retiring pursuant to
KRS
61.590(5)(c), the member
shall return the Form 6010, Estimated Retirement Allowance, within six (6)
months of the member's effective retirement date as provided on the member's
Form 6000, Notification of Retirement to retain the effective date of
retirement shown on the form.
(6)
If the member fails to return the Form 6010, Estimated Retirement Allowance,
within six (6) months of the member's effective retirement date, the member's
Form 6000, Notification of Retirement, shall be void and the member shall be
required to submit a new Form 6000, Notification of Retirement and select a new
effective retirement date. The member shall not select an effective retirement
date prior to the date the Form 6000, Notification of Retirement is
submitted.
(7) If a member who is
approved for disability retirement benefits fails to return the member's Form
6010, Estimated Retirement Allowance within six (6) months of the date the
member is notified that the member's disability application has been approved,
then the member's Form 6000, Notification of Retirement, and the approval of
the member's application for disability retirement benefits shall be considered
void. The member may file a subsequent Form 6000, Notification of Retirement,
to re-apply for disability retirement benefits.
(8) If a member's Form 6000, Notification of
Retirement, is withdrawn, invalid, or voided, the beneficiary or beneficiaries
and contingent beneficiary or beneficiaries designated on the last Form 2035,
Beneficiary Designation, on file at the retirement office shall remain in full
force and effect.
Section
4.
(1) The retirement office
shall not process a monthly retirement allowance until the member has filed at
the retirement office:
(a) A properly signed,
witnessed, and dated Form 6010, Estimated Retirement Allowance;
(b) A copy of the member's birth
verification;
(c) A copy of the
birth verification for the beneficiary if selecting a survivorship option;
and
(d)
1. A completed Form 6130, Authorization for
Deposit of Retirement Payment; or
2. A completed Form 6135, Request for Payment
by Check.
(2)
The retirement office shall not process a lump sum retirement benefit until:
(a) The member has filed at the retirement
office:
1. A properly signed, witnessed, and
dated Form 6010, Estimated Retirement Allowance; and
2. A Form 6025, Direct Rollover/Direct
Payment Election Form for a Member or a Spouse Beneficiary of an Eligible
Rollover Distribution; and
(b) The member's employer has filed at the
retirement office proof of the member's employment termination and reported all
creditable compensation and accumulated sick leave.
Section 5. Incorporation
by Reference.
(1) The following material is
incorporated by reference:
(a) Form 6000,
"Notification of Retirement", May 2019;
(b) Form 6010, "Estimated Retirement
Allowance", May 2015;
(c) Form
6130, "Authorization for Deposit of Retirement Payment", July 2015;
(d) Form 6017, "Federal Income Tax
Withholding Preference for Periodic Payments", May 2018;
(e) Form 6030, "Death Benefit Designation",
May 2015;
(f) Form 6135, "Request
for Payment by Check", July 2015;
(g) Form 2035, "Beneficiary Designation", May
2015; and
(h) Form 6025, "Direct
Rollover/Direct Payment Election Form for a Member or a Spouse Beneficiary of
an Eligible Rollover Distribution", May 2015.
(2) This material may be inspected, copied,
or obtained, subject to applicable copyright law, at the Kentucky Retirement
Systems, 1260 Louisville Road, Frankfort, Kentucky 40601, Monday through
Friday, 8 a.m. to 4:30 p.m.
18 Ky.R. 931; Am.
1324; eff. 11-8-1991; 21 Ky.R. 1523; eff. 2-8-1995; 23 Ky.R. 2834; 3311; 3554;
eff. 2-26-1997; 27 Ky.R. 1048; 1443; eff. 12-21-2000; 29 Ky.R. 765; 1248; eff.
11-12-2002; 31 Ky.R. 383; 700; eff. 11-5-2004; 34 Ky.R. 117; 542; eff.
10-5-2007; 35 Ky.R. 108, Am. 536; eff. 10-3-2008; 42 Ky.R. 452; eff. 11-6-2015;
46 Ky.R. 74, 879, eff. 10-4-2019.
STATUTORY AUTHORITY:
KRS
61.590(1),
61.645(9)(e)