Current through Register Vol. 50, No. 6, December 1, 2023
RELATES TO: KRS 16.505-16.652, 61.510-61.705, 78.510-78.852,
344.030,
29 C.F.R. Part 1630, 42 U.S.C. 12111(9)
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
61.645(9)(g) authorizes the
Board of Trustees of Kentucky Retirement Systems to promulgate all
administrative regulations necessary or proper in order to carry out the
provisions of
KRS
61.515 to
61.705,
16.510
to
16.652,
and
78.520
to
78.852.
KRS 16.582,
61.600, and
61.665
provide for a process for applying for disability retirement benefits to
members of the retirement systems and a process for administrative appeal of a
denial of an application or reapplication for disability retirement benefits.
This administrative regulation establishes the procedure for filing an
application or reapplication for disability retirement benefits and the
procedures for filing an administrative appeal of a denial of an application
for disability retirement benefits.
Section
1.
(1) An application or
reapplication for disability benefits shall be made on "Form 6000, Notification
of Retirement".
(2)
(a) The application or reapplication shall be
filed at the retirement systems within twenty-four (24) months, which is 730
calendar days, of the applicant's last day of paid employment in a regular
full-time position.
(b) The time
period for filing an application or reapplication for disability retirement
benefits shall begin on the day after the applicant's last day of paid
employment in the regular full-time position and shall end at close of business
on the following 730th day.
(c) If
the last day of the period is a Saturday, Sunday, or state or federal holiday,
then the application shall be valid if filed at the retirement systems by the
close of the next business day following the weekend or holiday.
(d) The applicant's employer shall certify
the applicant's last day of paid employment.
(e) An application or reapplication may be
submitted prior to the applicant's last day of paid employment.
Section 2.
(1) If the applicant is eligible to begin
drawing early retirement benefits, the applicant shall be notified of the right
to receive a retirement allowance while the disability application is being
processed.
(2) Election of early
retirement by the applicant shall not affect the application for disability
retirement.
Section 3.
(1) The applicant shall complete and submit
to the retirement systems a "Form 8035, Employee's Job Description". The
applicant's employer shall complete and submit to the retirement systems a
"Form 8030, Employer's Job Description". Both the applicant and the employer
shall provide information regarding applicant's request for reasonable
accommodations and the reasonable accommodations available to applicant,
whether or not the applicant actually accepted the reasonable
accommodations.
(2) The retirement
systems may require additional details from the applicant and the applicant's
employer regarding the applicant's job duties, if necessary.
Section 4.
(1) If the retirement systems requires an
applicant to submit to a medical or psychological examination under
KRS
61.665(2)(j) or
61.665(3)(c),
the retirement systems shall reimburse the applicant for mileage from the
applicant's home address as it is on file at the retirement systems, to the
place of the examination or evaluation, and returning to the applicant's home
address on file at the retirement systems. The applicant shall be reimbursed
for the most direct and usually traveled routes.
(2) Mileage shall be based on the "Kentucky
Official Highway Map", mileage software, or the most recent edition of the
"Rand McNally Road Atlas." The applicant shall complete and submit a Form 8846,
Independent Examination Travel Voucher indicating the mileage the applicant
traveled from the applicant's home address as it is on file at the retirement
systems, to the place of the examination or evaluation, and returning to the
applicant's home address on file at the retirement systems. The applicant shall
use the most direct and usually traveled routes.
(3) The mileage certified by the applicant
shall not be greater than the mileage indicated by the "Kentucky Official
Highway Map", mileage software, or the most recent edition of the "Rand McNally
Road Atlas" for the most direct and usually traveled route from applicant's
home address as it is on file at the retirement systems, to the place of the
examination or evaluation, and returning to the applicant's home address on
file at the retirement systems. If the mileage certified by the applicant is
greater than the mileage indicated by the "Kentucky Official Highway Map",
mileage software, or the most recent edition of the "Rand McNally Road Atlas"
the retirement systems shall pay the applicant the mileage indicated by the
"Kentucky Official Highway Map", mileage software, or the most recent edition
of the "Rand McNally Road Atlas".
(4) Reimbursement for use of a privately
owned vehicle shall be made at the IRS established standard mileage rate which
changes periodically; and shall not exceed the cost of commercial coach
fare.
(5) Actual costs for parking
shall be reimbursed upon submission of receipts. The applicant shall submit the
originals of the parking receipts along with a written request for
reimbursement.
(6) Actually bridge
and highway toll charges shall be reimbursed if the bridge or highway is on the
most direct and usually traveled route. The applicant shall submit the
originals of the bridge and highway toll receipts along with a written request
for reimbursement.
(7) The
applicant shall file at the retirement office a completed Form 8846,
Independent Examination Travel Voucher, within fifteen (15) days of the date of
the examination or evaluation in order to receive reimbursement for travel
expenses.
Section 5. The
applicant shall provide to the retirement system information concerning his
continuing status with regard to receipt of Workers' Compensation and Social
Security disability benefits.
Section
6.
(1) The applicant shall
complete and submit a "Form 8001, Certification of Application for Disability
Retirement and Supporting Medical Information." The applicant shall attach all
medical information, forms, and other information for review by the medical
examiners to the "Form 8001, Certification of Application for Disability
Retirement and Supporting Medical Information."
(2) The retirement systems shall submit the
completed "Form 8001, Certification of Application for Disability Retirement
and Supporting Medical Information" and all the attached information to the
medical examiners upon receipt by the retirement systems.
(3) The time periods prescribed in
KRS 61.600
and
61.665
shall begin on the day the notification of the recommendation of the medical
examiners is mailed by the retirement systems and shall end at close of
business on the last day of the prescribed time period.
(4) If the last day of the period is a
Saturday, Sunday, or state or federal holiday, then the application shall be
valid if filed at the retirement systems by the close of the next business day
following the weekend or holiday.
(5) An applicant's request for a formal
hearing shall be made in writing.
(6) Statements by the physicians shall not be
considered medical evidence unless accompanied by documented medical records or
test results.
Section 7.
The medical examiner may contact the applicant or the applicant's physicians to
request additional medical evidence as necessary.
Section 8.
(1) The hearing officer may allow the
applicant to introduce, among other evidence, the determination of Workers'
Compensation or Social Security Administration awarding disability benefits to
the applicant.
(2) The hearing
officer shall consider only objective medical records contained within the
determination and shall not consider vocational factors or be bound by factual
or legal findings of other state or federal agencies.
Section 9.
(1) The provisions of this section shall only
apply to a member who began participating on or before July 31, 2004.
(2) If an application for disability is
approved, the applicant's disability benefit shall be paid retroactive to the
month following the month of the applicant's last day of paid
employment.
(3) The service added
for determining the disability retirement allowance shall be determined under
KRS 16.582
if the applicant's last day of paid employment was in a hazardous position, or
under
KRS
61.605 if the applicant's last day of paid
employment was in a nonhazardous position.
(4) If the applicant has both hazardous and
nonhazardous service in the same system, the added service shall be prorated
between hazardous and nonhazardous service based on the proportion of service
in each position to the whole, except that all of the added service shall be
applied toward the nonhazardous retirement allowance if:
(a) The applicant is disabled from a
hazardous position as a result of an act in line of duty; and
(b) Twenty-five (25) percent of the
applicant's final rate of pay is greater than the hazardous disability
retirement allowance determined using the prorated added service.
(5) If the applicant has service
in more than one (1) system administered by the Kentucky Retirement Systems,
the added service shall be prorated between the systems based on the proportion
of service in each system to the whole, except if the applicant is disabled
from a hazardous position in one (1) system as a result of an act in line of
duty and twenty-five (25) percent of the applicant's final rate of pay is
greater than the hazardous disability retirement allowance determined using the
prorated added service:
(a) All of the added
service shall be applied toward the nonhazardous retirement system if the
applicant is vested for disability benefits from the nonhazardous
system.
(b) All of the added
service shall be applied toward the hazardous retirement system if the
applicant is not vested for disability benefits from the nonhazardous
system.
Section
10.
(1) If the applicant who is
awarded disability retirement benefits did not receive early retirement
benefits, upon the applicant's selection of a payment option, the retirement
systems shall pay the applicant the total monthly retirement allowances payable
from the effective date of disability retirement.
(2)
(a) If
the applicant received early retirement benefits, the retirement systems shall
calculate and pay to the applicant the difference between the early retirement
benefit which was paid to the applicant and the disability benefit.
(b) The applicant shall not change his
payment option.
(3) If
benefits are payable to dependent children, as defined in
KRS
16.505(17), the parent or
guardian shall provide:
(a) A completed Form
6456, Designation of Dependent Child;
(b) A verification of full-time student
status of a child age eighteen (18) or over;
(c) A copy of the birth certificate of each
dependent child;
(d) If a dependent
child is a minor, a Form 6110, Affidavit of Authorization to Receive Funds on
Behalf of Minor. If the minor child has a court appointed guardian or
conservator and the court appointed guardian or conservator completed the Form
6110, Affidavit of Authorization to Receive Funds on Behalf of Minor, the
guardian or conservator shall submit a copy of the court order appointing the
guardian or conservator; and
(e)
Notice of the death or marriage of a dependent child, or if the dependent child
ceases to be a full-time student.
(f) A copy of the dependent child's
verification of full-time student status shall be filed with the retirement
system for each semester of study within thirty (30) days following the start
and within thirty (30) days following the end of each semester.
(4) An increase provided to
recipients under
KRS 61.691
shall be applied to the applicant's disability benefit and payments to
dependent children in determining the total retroactive payments owed to the
applicant and dependent children.
Section 11.
(1) The applicant shall notify the retirement
systems of his intent to apply for workers' compensation or benefits from the
Social Security Administration. Upon receipt of approval for workers'
compensation or benefits from the Social Security Administration, the applicant
shall file at the retirement systems a copy of the approval notice containing
the amount of the award.
(2) To
determine the maximum benefit under
KRS
61.607, the following shall be added
together:
(a) The applicant's gross monthly
disability retirement allowance determined in accordance with
KRS
61.605 or
16.582,
excluding payments to dependent children and before any actuarial reduction for
purposes of an optional retirement plan under
KRS
61.635 or
16.576,
converted to an annual amount.
(b)
The applicant's total gross annual benefit from workers' compensation. If the
applicant's benefit includes a lump sum payment or a payment for a period less
than the applicant's lifetime, then an annualized benefit shall be determined
as follows:
1. The gross amount of any lump
sum payment shall be divided by the applicant's life expectancy, expressed in
years, from the effective date of the award.
2. The total gross amount of all payments
paid for any period other than the applicant's lifetime shall be divided by the
applicant's life expectancy, expressed in years, from the effective date of the
award.
3. The total determined in
subparagraphs 1 and 2 of this paragraph shall be combined and added to the
total gross annual amount of the applicant's lifetime benefit, if
any.
(c) The applicant's
gross monthly disability benefit from the Social Security Administration,
excluding spouse or dependent benefits converted to an annual amount.
(3) If the projected combined
monthly benefit exceeds 100 percent of the disabled employee's final rate of
pay or final compensation, whichever is greater, the disability retirement
allowance from the retirement system shall be reduced as follows:
(a) The difference shall be divided by twelve
(12) and subtracted from the applicant's monthly retirement allowance
determined in accordance with
KRS
61.605 or
16.582,
excluding payments to dependent children and before any actuarial reduction for
purposes of an optional retirement plan under
KRS
61.635 or
16.576.
(b) The actuarial reduction for the
applicant's optional plan under
KRS
61.635 or
16.576
shall be applied to determine the applicant's monthly retirement allowance. The
reduction shall apply to all retirement allowances received since the date the
combined benefits exceeded 100 percent of the higher of the applicant's final
compensation or final rate of pay based on the effective dates of the
individual benefits.
(4)
The disability retirement allowance payable shall not be reduced below an
amount which would result from a computation of retirement allowance under
early retirement or the disability retirement allowance from the retirement
system using the disabled employee's actual total service, whichever is
greater.
Section 12.
(1) A recipient shall complete a Form 6130,
Authorization for Deposit of Retirement Payment, to have the monthly retirement
allowance deposited to an account in a financial institution.
(2) The recipient and the financial
institution shall provide the information and authorizations required for the
electronic transfer of funds from the State Treasurer's office to the
designated financial institution.
(3)
(a) At
any time while receiving a retirement allowance, the recipient may change the
designated institution by completing a new Form 6130, Authorization for Deposit
of Retirement Payment, and filing the form at the retirement systems.
(b) The last Form 6130, Authorization for
Deposit of Retirement Payment on file at the retirement systems shall control
the electronic transfer of the recipient's retirement allowance.
(4) The recipient may complete a
Form 6135, Request for Payment by Check.
(5) The retirement systems shall not process
the retirement allowance until the recipient has filed a completed Form 6130,
Authorization for Deposit of Retirement Payment or filed a completed Form 6135,
Request for Payment by Check.
Section
13. Incorporation by Reference.
(1) The following material is incorporated by
reference:
(a) Form 6000, "Notification of
Retirement", July 2004;
(b) Form
8030, "Employer's Job Description", July 2004;
(c) Form 8035, "Employee's Job Description",
July 2004;
(d) Form 6110,
"Affidavit of Authorization to Receive Funds on Behalf of Minor", May
2003;
(e) Form 6456, "Designation
of Dependent Child," July 2004;
(f)
Form 6130, Authorization for Deposit of Retirement Payment", May
2008;
(g) Form 6135, "Request for
Payment by Check", February 2002;
(h) Form 8001, "Certification of Application
for Disability Retirement and Supporting Medical Information", May 2008;
and
(i) Form 8846, "Independent
Examination Travel Voucher", May 2008.
(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.
18 Ky.R. 932;
eff. 11-8-91; Am. 19 Ky.R. 968; 1338; eff. 12-9-92; 20 Ky.R. 829; eff. 12-6-93;
21 Ky.R. 1525; eff. 2-8-95; 22 Ky.R. 775; eff. 12-7-95; 27 Ky.R. 1050; 1444;
eff. 12-21-2000; 28 Ky.R. 912; 1350; eff. 12-19-2001; 29 Ky.R. 767; 1250; eff.
11-12-02; 31 Ky.R. 386; eff. 11-5-04; 35 Ky.R. 111; Am. 538; eff. 10-3-08;
Certified to be amended, filing deadline
7-29-2021.
STATUTORY AUTHORITY:
KRS
61.645(9)(g)