††††† RELATES TO: KRS 161.220(9)
††††† STATUTORY AUTHORITY: KRS 161.310
††††† NECESSITY, FUNCTION AND CONFORMITY: KRS 161.310(1) requires the board of trustees to promulgate administrative regulations for the administration of the funds of the retirement system and for the transaction of business. KRS 161.220(9) establishes the definition of "final average salary" for retirement calculation purposes, which definition limits the amount of increases in salaries that can be included as final average salary if those increases are received for any of the three (3) years of employment immediately prior to retirement, unless the member experiences a corresponding change in position or in length of employment. This administrative regulation establishes the method for calculating final average salary if there is a change in length of employment.
††††† Section 1. A member who receives an increase in salary that exceeds the limits permitted for inclusion as final average salary pursuant to KRS 161.220(9)(b), but experiences a corresponding change in length of employment, shall have his or her final average salary calculated using salaries adjusted in the manner established in this section.
††††† (1) The member shall receive one (1) additional day of salary for retirement calculation purposes at the memberís base daily rate of pay for each day added to the memberís annual contract in excess of the memberís contracted days from the last immediately prior work year.
††††† (2) The base daily rate of pay used as additional salary credit shall not include compensation:
††††† (a) For extra duties worked beyond the memberís primary job duty for which the member receives most of his or her compensation;
††††† (b) That exceeds the limitations established by KRS 161.220(9)(b);
††††† (c) That is not "annual compensation" as defined by KRS 161.220(10); or
††††† (d) That is otherwise excluded from use in retirement calculations pursuant to the provisions of KRS 161.220 through 161.716.
††††† (3) The additional days shall be worked days in order to have the additional salary included for retirement calculation purposes. (39 Ky.R. 1342; 1652; eff. 3-8-2013.)