Member Handbook - Kentucky Retirement Systems

Member Handbook CHAPTER 1 PLAN ADMINISTRATION CHAPTER 4 RETIREMENT ELIGIBILITY continued 1 Review Processes 29 Retirement Payment Options 1 Laws and Regulations 29 Payment Option Descriptions 2 Plan Funding 32 Tax Treatment of Benefits 3 Creditable Compensation 32 Divorce and Retirement Benefits 3 Annual Compensation Limits 3 Tax Treatment of Contributions CHAPTER 2 PARTICIPATION & ACCOUNT INFO CHAPTER 5 MEDICAL INSURANCE & OTHER BENEFITS 5 KRS Membership 33 Medical Insurance Coverage 6 Member Accounts 35 Waiver of Insurance Coverage 8 Member Responsibilities 35 COLA for Retirees 8 Accessing Benefits Info 35 $5,000 Death Benefit CHAPTER 3 SERVICE CREDIT CHAPTER 6 RETIREMENT & REEMPLOYMENT 11 Types of Service Credit 37 When to File for Benefits 12 Purchasing Service Credit 37 After

You File Form 6000 13 Purchase Types 38 Your First Retirement Check 14 Purchase Types 38 Important Considerations 15 Paying for a Service Purchase 39 Employment after Retirement 39 Bona Fide Separation from Service 17 Sick Leave Service Credit 39 Duration of Separation from Service 40 Participation in KRS 17 Active Military Service 40 Health Insurance 40 Before You Begin Re-employment 19 Service with Other Plans CHAPTER 4 RETIREMENT ELIGIBILITY CHAPTER 7 DISABILITY & DEATH 21 Participation Prior to 9/1/08 41 Qualifications for Non-Hazardous Members 21 Non-Hazardous Members 22 Hazardous Members 41 Qualifications for Hazardous Members 23 Determining Retirement Benefits 23 Final Compensation 42 Steps Required to Apply for Disability 25 Benefit Factors 26 Years of Service Credit 42 Forms for Employer to Complete 26 Example of Retirement Formula 43 Disability Application Review 27 Participation 9/1/08 or After 44 Receiving Disablity Benefits 27 Non-Hazardous Members 27 Hazardous Members 44 Death Before Retirement 27 Determining Retirement Benefits 28 Final Compensation 46 Death After Retirement 28 Benefit Factors 28 Years of Service Credit 29 Example of Retirement Formula Chapter 1 Plan Administration Retirement benefits for most state and local government employees are provided through the Kentucky Retirement Systems (KRS). KRS is governed by a nine-member Board of Trustees and consists of three separate KERS retirement systems: v Kentucky Employees Retirement System v Kentucky Employees Retirement System (KERS) established July 1, 1956 for state employees. CERS v v County Employees Retirement System (CERS) established July 1, 1958 for local County Employees Retirement System government employees and classified school board employees. SPRS v State Police Retirement System v State Police Retirement System (SPRS) established July 1, 1958 for uniformed Kentucky State Police officers. Kentucky Retirement Systems is a 401(a) plan. REVIEW PROCESSES All funds are invested in accordance with the Kentucky Revised Statutes and the Board of Trustees’ adopted policies. The Board is governed by the “Prudent As a fiduciary of plan assets for more than 324,000 members, KRS is held to a very Person” rule and must invest solely in the interests of members and their high standard of public scrutiny. The following reports are completed each year and beneficiaries, impartially and with good provide an overview of the annual review processes in place for the retirement plans: faith interpretation of the law. v v An annual audit is conducted to ensure proper accounting procedures. v v An annual actuarial valuation is performed...

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