††††† 105 KAR 1:200. Retirement procedures and forms.

 

††††† RELATES TO: KRS 16.576, 16.577, 16.645, 61.590, 61.595, 61.623, 61.702, 61.705, 78.545

††††† STATUTORY AUTHORITY: KRS 61.590(1), 61.645(9)(g)

††††† NECESSITY, FUNCTION, AND CONFORMITY: KRS 61.645(9)(g) authorizes the Board of Trustees of Kentucky Retirement Systems to promulgate 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 61.590(1) requires that a member or beneficiary eligible to receive retirement benefits have on file at the retirement office each form required by the board. This administrative regulation establishes the procedures and forms for application for and receipt of retirement benefits by members of the Kentucky Retirement Systems.

 

††††† Section 1. (1)(a) The member shall submit a Form 6000, Notification of Retirement, to the retirement systems no earlier than six (6) months prior to the member's desired effective retirement date.

††††† (b) The member shall provide current information regarding any sick or compensatory leave balances with the Form 6000, Notification of Retirement.

††††† (c) The member shall file a copy of the member's most recent check stub indicating the sick and compensatory leave balances or the member shall submit written verification by the memberís employer of the memberís sick and compensatory leave balances as of the memberís actual or scheduled employment termination date.

††††† (2) The member shall designate the beneficiary of the member's retirement allowance on the Form 6000, Notification of Retirement.

††††† (3) The Form 6000, Notification of Retirement, shall be dated and the member's signature shall be witnessed.

 

††††† Section 2. (1) The retirement system shall provide an estimate of the member's retirement allowance based on the salary reported to the system and information that may be supplied by the member or the member's employer.

††††† (2) The payment options and amounts available to the member shall be printed on the Form 6010, Estimated Retirement Allowance, and provided to the member with a place to designate the member's choice of payment option.

 

††††† Section 3. (1)(a) The member shall designate a desired payment option and sign and date the Form 6010, Estimated Retirement Allowance.

††††† (b) The member's signature on the Form 6010, Estimated Retirement Allowance, shall be witnessed and the Form 6010, Estimated Retirement Allowance, returned to the retirement office as required by subsection (2)(c) or (3) of this section.

††††† (2)(a) The member's employment shall be terminated the month before the member's effective retirement date.

††††† (b) The retirement office shall process the first payment in the month following the month in which the completed Form 6010, Estimated Retirement Allowance, and all other applicable forms as provided in this administrative regulation, have been filed at the retirement office.

††††† (c) The Form 6010, Estimated Retirement Allowance, and all other applicable forms as provided in this administrative regulation, shall be filed in the retirement office on the last day of the month preceding the month of the memberís effective retirement date.

††††† (3) If the member is retiring pursuant to early retirement provisions, the member shall return the Form 6010, Estimated Retirement Allowance, within six (6) months of the member's retirement date to retain the effective date of retirement shown on the form.

††††† (4)(a) If the member fails to return the Form 6010, Estimated Retirement Allowance, within six (6) months of the member's retirement date, the member's Form 6000, Notification of Retirement, shall be considered void and the member shall be required to submit a new Form 6000, Notification of Retirement.

††††† (b) If a memberís Form 6000, Notification of Retirement, is withdrawn, invalid, or voided, the beneficiary or beneficiaries and contingent beneficiary or beneficiaries designated on the last Form 2035, Beneficiary Designation, on file at the retirement office shall remain in full force and effect.

 

††††† Section 4. (1)(a) The member shall provide the retirement system a copy of the member's birth certificate or other verification of age and, if a survivorship payment option is selected, a copy of the birth certificate or other verification of age of the beneficiary named on the member's Form 6000, Notification of Retirement.

††††† (b) If the memberís or beneficiaryís name is no longer the same as the name listed on the birth certificate or other verification of age, the systems shall require the member or beneficiary to submit a marriage license, court order, or legally-binding documentation of the name change.

††††† (2) The retirement system shall accept one (1) or more of the following as proof of age of the member or beneficiary:

††††† (a) Age record of the Social Security Administration;

††††† (b) Immigration and naturalization service records;

††††† (c) Baptismal record;

††††† (d) Marriage license;

††††† (e) School record;

††††† (f) Birth certificate;

††††† (g) Military discharge;

††††† (h) U.S. passport; or

††††† (i) Other reliable proof of age that may be used by the courts to verify the person's age.

 

††††† Section 5. (1)(a) 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.

††††† (b) The member or 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.

††††† (2)(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 office in Frankfort.

††††† (b) The last Form 6130, Authorization for Deposit of Retirement Payment on file at the retirement office shall control the electronic transfer of the recipient's retirement allowance.

††††† (3) The recipient may complete a Form 6135, Request for Payment by Check, if the recipient does not currently have an account with a financial institution or the recipient's financial institution does not participate in the electronic funds transfer program.

††††† (4) The retirement office shall not process the retirement allowance until the recipient has filed a completed:

††††† (a) Form 6130, Authorization for Deposit of Retirement Payment; or

††††† (b) Form 6135, Request for Payment by Check.

 

††††† Section 6. (1) The retirement office shall provide a Form 6120, Certification of Service, to the member to certify service with another agency participating in the Kentucky Retirement Systems for which the member may be eligible to purchase credit prior to employment termination.

††††† (2) The retirement office shall, upon request, provide the member with the cost of purchasing the service and an estimate of the benefits attributable to the additional service credit.

 

††††† Section 7. (1)(a) The retirement office shall provide forms for the selection or waiver of medical insurance coverage for the member, the member's spouse, or the member's dependents pursuant to the group insurance plan upon retirement.

††††† (b) The recipient shall complete the Kentucky Employees Health Plan Health Insurance Application for the Kentucky Retirement Systems or the Form 6200, Kentucky Retirement Systems Medicare Eligible Insurance Enrollment Form.

††††† (2)(a) If the insurance form is received by the last day of the month prior to the month the initial retirement allowance is processed, the insurance coverage shall be effective the first day of the month the recipient becomes eligible for insurance coverage.

††††† (b) If the form is received or if changes are made within thirty (30) days following the first day of the month in which the initial retirement allowance is processed, coverage shall be effective the first day of the month following the month in which the initial retirement allowance is processed.

††††† (3) A recipient who fails to submit a form selecting medical insurance coverage within thirty (30) days following the first day of the month in which the initial retirement allowance is processed shall not be eligible for benefits pursuant to the insurance plan until the following open enrollment period.

 

††††† Section 8. (1) The retirement office shall provide a Form 6017, Federal Income Tax Withholding Preference for Periodic Payments, to the member to request that federal income taxes be withheld or not withheld from the member's retirement allowance.

††††† (2) If the member is eligible for benefits from the excess benefit plan, the member shall provide the information required by 26 U.S.C. 3402 for purposes of federal income tax withholding from the member's retirement allowance.

 

††††† Section 9. (1) The retirement office shall provide a Form 6030, Death Benefit Designation, to the member to designate a beneficiary for the death benefit provided by the Kentucky Retirement Systems.

††††† (2) If the member does not file or incorrectly completes a Form 6030, Death Benefit Designation, the memberís estate shall become the default beneficiary.

 

††††† Section 10. (1) The retirement office shall not process a monthly retirement allowance until the member has filed at the retirement office:

††††† (a) A Form 2001, Membership Information;

††††† (b) A properly signed, witnessed, and dated Form 6010, Estimated Retirement Allowance;

††††† (c) A copy of the memberís birth verification;

††††† (d) A copy of the birth verification for the beneficiary if selecting a survivorship option; and

††††† (e)1. A completed Form 6130, Authorization for Deposit of Retirement Payment; or

††††† 2. A completed Form 6135, Request for Payment by Check.

††††† (2) The retirement office shall not process a lump sum retirement benefit until:

††††† (a) The member has filed at the retirement office:

††††† 1. A Form 2001, Membership Information Form;

††††† 2. A properly signed, witnessed, and dated Form 6010, Estimated Retirement Allowance;

††††† 3. A Form 6025, Direct Rollover/Direct Payment Election Form for a Member or a Spouse Beneficiary of an Eligible Rollover Distribution; and

††††† 4. A copy of the memberís birth verification; and

††††† (b) The memberís employer has filed at the retirement office proof of the memberís employment termination and reported all creditable compensation and accumulated sick leave.

††††† (3) The retirement office shall not process a partial lump sum options retirement benefit until:

††††† (a) The member has filed at the retirement office:

††††† 1. A Form 2001, Membership Information Form;

††††† 2. A properly signed, witnessed, and dated Form 6010, Estimated Retirement Allowance;

††††† 3. A Form 6025, Direct Rollover/Direct Payment Election Form for a Member or a Spouse Beneficiary of an Eligible Rollover Distribution;

††††† 4. A copy of the memberís birth verification; and

††††† 5. A copy of the birth verification for the beneficiary if selecting a survivorship option; and

††††† (b) The recipient has filed a completed:

††††† 1. Form 6130, Authorization for Deposit of Retirement Payment; or

††††† 2. Form 6135, Request for Payment by Check.

 

††††† Section 11. Incorporation by Reference. (1) The following material is incorporated by reference:

††††† (a) Form 6000, "Notification of Retirement", July 2004;

††††† (b) Form 6010, "Estimated Retirement Allowance", July 2004;

††††† (c) Form 6130, "Authorization for Deposit of Retirement Payment", May 2008;

††††† (d) Form 6120, "Certification of Service", July 2000;

††††† (e) Form 6200, "Kentucky Retirement Systems Medicare Eligible Insurance Enrollment Form", October 2006;

††††† (f) Form 6017, "Federal Income Tax Withholding Preference for Periodic Payments", May 2008;

††††† (g) Form 6030, "Death Benefit Designation", May 2008;

††††† (h) Form 6135, "Request for Payment by Check", February 2002;

††††† (i) "Kentucky Employees Health Plan Health Insurance Application for the Kentucky Retirement Systems (KRS)"; August 2007;

††††† (j) Form 2001 "Membership Information", February 2002;

††††† (k) Form 2035, "Beneficiary Designation", June 2003; and

††††† (l) Form 6025, "Direct Rollover/Direct Payment Election Form for a Member or a Spouse Beneficiary of an Eligible Rollover Distribution", 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. 931; Am. 1324; eff. 11-8-91; 21 Ky.R. 1523; eff. 2-8-95; 23 Ky.R. 2834; 3311; 3554; eff. 2-26-97; 27 Ky.R. 1048; 1443; eff. 12-21-2000; 29 Ky.R. 765; 1248; eff. 11-12-02; 31 Ky.R. 383; 700; eff. 11-5-04; 34 Ky.R. 117; 542; eff. 10-5-2007; 35 Ky.R. 108, Am. 536; eff. 10-3-08.)