FINANCE AND ADMINISTRATION CABINET

Kentucky Teachersí Retirement System

(Amendment)

 

††††† 102 KAR 1:070. Application for retirement.

 

††††† RELATES TO: KRS 161.600, 161.605(11), 161.640

††††† STATUTORY AUTHORITY: KRS 161.310(1), 161.600(4)

††††† NECESSITY, FUNCTION, AND CONFORMITY: KRS 161.310 requires the Board of Trustees of the Kentucky Teachersí Retirement System (KTRS) to promulgate all administrative regulations for the administration of the funds of the retirement system and for the transaction of business. KRS 161.600(4) requires the board to promulgate administrative regulations concerning application for an annuity to receive benefit payments. This administrative regulation establishes procedures for filing of retirement applications and for determining effective dates of annuity payments.

 

††††† Section 1. Applications for retirement shall be filed on the Application for Service Retirement and shall include:

††††† (1) A photocopy of the applicantís signed Social Security card;

††††† (2) A certified birth certificate;

††††† (3) If applicable, a certified marriage certificate[license]; and

††††† (4) A voided or cancelled check from the institution to which monthly disbursements shall be electronically transmitted.

 

††††† Section 2. Applications for retirement for service shall not be filed later than the first day of the month immediately preceding the month that retirement is to be effective.

††††† (1) Retirement for service shall be effective on the first day of the month following the date that a properly completed and filed application is received at the offices of Kentucky Teachersí Retirement System.

††††† (2) A member eligible to retire may exercise this right during a school year in which the member has been in employment if there is filed with the application a statement from the chief administrative officer or other authorized representative of the employing board or agency to the effect that the member is being released from the employment contract for the purpose of retirement.

 

††††† Section 3. An application received by mail and bearing the U.S. Postal Service postmark dated on or before the filing date established in Section 2 of this administrative regulation shall be accepted as having been filed in compliance with Section 2 of this administrative regulation.

 

††††† Section 4.[An application for service retirement may be approved by the board of trustees with an effective date that is retroactive up to a maximum of three (3) months if the member was not under contract for the period.

 

††††† Section 5.] The provisions of this administrative regulation shall apply to any member who is returning to retirement after having waived his or her retirement allowance under the provisions of KRS 161.605(11).

 

††††† Section 5.[6.] Incorporation by reference. (1) "Application for Service Retirement", 2016[2013], is incorporated by reference.

††††† (2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at Kentucky Teachersí Retirement System, 479 Versailles Road, Frankfort, Kentucky 40601-3800, Monday through Friday, 8 a.m. to 5 p.m.

 

ARTHUR GREEN, Chairperson

††††† APPROVED BY AGENCY: December 21, 2015

††††† FILED WITH LRC: January 14, 2016 at noon

††††† PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall be held on Wednesday, 24 February 2016, at 9:00 a.m. at the Kentucky Teachers' Retirement System, 479 Versailles Road, Frankfort, Kentucky. Individuals interested in being heard at this hearing shall notify this agency in writing by Wednesday, 17 February 2016, five (5) working days prior to the hearing of their intent to attend. If no notification of intent to attend the hearing is received by this date, the heating may be cancelled. This hearing is open to the public. Any person who wishes to be heard will be given the opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation until the end of the calendar day on Monday, 29 February 2016. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.

††††† CONTACT PERSON: Robert B. Barnes, Deputy Executive Secretary of Operations and General Counsel, Kentucky Teachers' Retirement System, 479 Versailles Road, Frankfort, Kentucky 40601, phone (502) 848-8508, fax (502) 573-0199.

 

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT

 

Contact Person: Robert B. Barnes

††††† (1) Provide a brief summary of:

††††† (a) What this administrative regulation does: Establishes procedures for filing a retirement application and determining the effective date of annuity payments.

††††† (b) The necessity of this administrative regulation: Members who meet the conditions for retirement mandated by KRS 161.600(1) must also meet the criteria for filing an application to begin receiving an annuity benefit.

††††† (c) How this administrative regulation conforms to the content of the authorizing statutes: The KTRS Board of Trustees is mandated under KRS 161.600(4) to establish the process for filing an application for retirement.

††††† (d) How this administrative regulation currently assists or will assist in the effective administration of the statutes: This administrative regulation establishes the detailed procedures for filing an application for retirement as contemplated by KRS 161.600(4).

††††† (2) If this is an amendment to an existing administrative regulation, provide a brief summary of:

††††† (a) How the amendment will change this existing administrative regulation: The amendment reflects the necessity of receipt of a certified copy of the memberís marriage certificate rather than a marriage license and deletes the provision for retroactive dating of an application.

††††† (b) The necessity of the amendment to this administrative regulation: To clarify that the member must provide a copy of the certified marriage certificate which is the official document which confirms that the marriage did, in fact, occur on a date certain and has been recorded in the stateís official record, rather than a copy of the certified marriage license which permits the parties to marry and to delete the provision for retroactive dating of an application.

††††† (c) How the amendment conforms to the content of the authorizing statutes: Clarifies that a certified marriage certificate is required with the retirement application to confirm the identity of the memberís surviving spouse who may be named as a beneficiary or eligible for future survivor benefits and deletes the provisions for retroactive dating of an application.

††††† (d) How the amendment will assist in the effective administration of the statues: A certified marriage certificate confirms the identity of the memberís surviving spouse who may be named as a beneficiary or eligible for future survivor benefits and cease retroactive dating of an application.

††††† (3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: Active, contributing, married members of KTRS who are eligible for retirement.

††††† (4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:

††††† (a) List the actions that each of the regulated entities identified in question (3) will have to comply with this administrative regulation or amendment: Members who are married will have to file a copy of their certified marriage certificate concurrent with the application for retirement no later than the first of the month preceding the month in which the member wants his retirement to be effective.

††††† (b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): Married members of the retirement system shall incur the cost of obtaining a copy of their certified marriage certificates which varies dependent upon the law of the jurisdiction in which the marriage ceremony took place.

††††† (c) As a result of compliance, what benefits will accrue to the entities identified in question (3): Members will be able to retire on their chosen date.

††††† (5) Provide an estimate of how much it will cost to implement this administrative regulation:

††††† (a) Initially: There is no cost to implement this regulation.

††††† (b) On a continuing basis: There is no continuing cost.

††††† (6) What is the source of funding to be used for the implementation and enforcement of this administrative regulation: Administrative expenses of the retirement system are paid by trust and agency funds.

††††† (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment: There is no increase in fees or funding required.

††††† (8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees: This regulation does not establish any fees or directly or indirectly increase any fees.

††††† (9) TIERING: Is tiering applied? Tiering is not applied, as all married members are treated the same

 

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

 

††††† 1. What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? Kentucky Teachers' Retirement System.

††††† 2. Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation. KRS 161.310(1), 161.600(4).

††††† 3. Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.

††††† 4. (a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year? None.

††††† (b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years? None.

††††† (c) How much will it cost to administer this program for the first year? Administrative costs will be dependent upon the number of applications processed and cannot be quantified at this time.

††††† (d) How much will it cost to administer this program for subsequent years? Administrative costs incurred will be dependent upon the number of applications processed and cannot be quantified at this time.

††††† Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.

††††† Revenues (+/-): N/A

††††† Expenditures (+/-): N/A

††††† Other Explanation: