Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
61.545,
61.552,
78.615
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
78.615 establishes the calculation for
determination of retirement service credit for classified employees of local
school boards.
KRS
78.615(1)(c) requires the
Board of Trustees of the Kentucky Retirement Systems to promulgate an
administrative regulation to allow classified employees of local school boards
who work less than a complete school year to purchase service credit to
complete the fiscal year. This administrative regulation establishes the
formulas to be used to determine the number of months of service credit earned
and for the purchase of service credit.
Section
1. For school years beginning July 1, 2000 and after, upon the
employee's completion of the school year, termination, or death, whichever
occurs first, the retirement system shall determine each employee's fiscal year
service credit as follows:
(1)
(a) The employee's actual days worked, as
reported by the school board, shall be divided by twenty (20) to determine the
number of months and fractional months worked during the fiscal year.
(b) The employee's total wages shall be
divided by the hourly rate reported by the school board to determine the total
number of hours worked during the fiscal year.
(c) The employee's total number of hours
worked shall be divided by the employee's months and fractional months worked
to determine if the employee worked an average of at least eighty (80) hours
per month.
(2) If the
employee does not work an average at least eighty (80) hours per month, the
service credit shall be disallowed and all employer and employee contributions
shall be refunded. Individual months in which the employee worked eighty (80)
or more hours during the fiscal year may be purchased as provided in
KRS
61.552.
Section 2. Each school board employee whose
employment averages eighty (80) or more hours per month over their actual days
worked as determined in Section 1 of this administrative regulation, shall be
credited with total service credit for the school year determined as follows:
(1) If the employee worked at least 180 days,
the employee shall be credited with twelve (12) months of service
credit.
(2) If the employee worked
fewer than 180 days, the employee shall receive the number of months of service
credit determined by dividing the actual number of days worked by 180 and
multiplying the resulting ratio by twelve (12) months. The number of months of
service shall be rounded to the nearest whole month, except that the employee
shall not receive twelve (12) months of service credit unless the employee
worked 180 or more days during the school year.
Section 3. For school years beginning July 1,
1996 through June 30, 2000, each school board employee whose employment
averages eighty (80) or more hours per month over their actual days worked as
determined in Section 1(1) of this administrative regulation, shall be credited
with total service credit for the school year determined as follows:
(1) If the employee worked an average of at
least eighty (80) hours per month over the number of actual days worked, as
reported by the school board, the employee shall be credited with service based
on the number of months and fractional months rounded to the next whole
month.
(2)
(a) If the employee does not work an average
of at least eighty (80) hours per month over the number of actual days worked,
the employee's contract days, as reported by the school board, shall be divided
by twenty (20) to determine the number of months and fractional months worked
during the fiscal year;
(b) The
employee's total wages shall be divided by the hourly rate reported by the
school board to determine the total number of hours worked during the fiscal
year;
(c) The employee's total
number of hours worked shall be divided by the employee's months and fractional
months worked to determine if the employee worked an average of at least eighty
(80) hours per month; and
(d) Each
school board employee who worked an average of at least eighty (80) hours per
month over the number of contract days, shall be credited with service based on
the number of months and fractional months rounded to the next whole
month.
(3) If the
employee does not work an average of at least eighty (80) hours per month over
the number of actual days worked or contract days, the member is allowed to
retain credit for individual months representing at least eighty (80) hours of
employment. Contributions and interest, if any, for months not representing
eighty (80) hours of employment shall be refunded to the employee and
employer.
Section 4. For
school years prior to July 1, 1996, the retirement system shall determine each
employee's fiscal year service credit as follows:
(1)
(a) The
employee's total fiscal year wages shall be divided by the hourly rate, as
reported by the school board, to determine the total number of hours worked
during the fiscal year;
(b) The
employee's total number of hours worked during the fiscal year shall be divided
by the employee's number of actual months reported by the school board to
determine if the employee worked an average of at least eighty (80) hours per
month; and
(c) If the employee
worked an average of at least eighty (80) hours per month over the number of
actual months as reported by the school board, the employee shall be credited
with service based on the number of actual months reported.
(2)
(a) If the employee does not work at least an
average of eighty (80) hours per month over the number of months reported for
each fiscal year, the employee's total calendar wages shall be divided by the
hourly rate reported by the school board to determine the number of hours
worked during the calendar year;
(b) The employee's total number of hours
worked during the calendar year shall be divided by the number of calendar
months reported by the school board to determine if the employee worked an
average of at least eighty (80) hours per month; and
(c) If the employee worked an average of at
least eighty (80) hours per month over the number of calendar months as
reported by the school board, the employee shall be credited with service based
on the number of calendar months reported.
(3)
(a) If
the employee does not work at least an average of eighty (80) hours per month
over the number of months reported for each fiscal or calendar year, the
employee's contract days, as reported by the school board, shall be divided by
twenty (20) to determine the number of months and fractional months worked
during the fiscal year;
(b) The
employee's total wages shall be divided by the hourly rate reported by the
school board to determine the total number of hours worked during the fiscal
year;
(c) The employee's total
number of hours worked shall be divided by the employee's months and fractional
months worked to determine if the employee worked an average of at least eighty
(80) hours per month; and
(d) If
the employee worked an average of at least eighty (80) hours per month over the
number of contract days, as reported by the school board, the employee shall be
credited with service based on the number of months and fractional months
rounded to the next whole month.
(4)
(a) If
the employee does not work at least an average of eighty (80) hours per month
over the number of months reported for each fiscal or calendar year, or
contract days, the employee's actual days worked, as reported by the school
board, shall be divided by twenty (20) to determine the number of months and
fractional months worked during the fiscal year;
(b) The employee's total wages shall be
divided by the hourly rate reported by the school board to determine the total
number of hours worked during the fiscal year;
(c) The employee's total number of hours
worked shall be divided by the employee's months and fractional months worked
to determine if the employee worked an average of at least eighty (80) hours
per month; and
(d) If the employee
worked an average of at least eighty (80) hours per month over the number of
actual days worked, as reported by the school board, the employee shall be
credited with service based on the number of months and fractional months
rounded to the nearest whole month.
(5) If the employee does not work an average
of at least eighty (80) hours per month over the number of reported months for
each fiscal or calendar year, contract days, or actual days worked, the member
is allowed to retain credit for individual months representing at least eighty
(80) hours of employment. Contributions and interest, if any, for months not
representing eighty (80) hours of employment shall be refunded to the employee
and employer.
STATUTORY AUTHORITY:
KRS
61.545(1),
61.645(9)(e),
78.615(1)(c)
