105 KAR 1:070. Allocation of special appropriation for military service credit

      Section 1. When a special appropriation is made to permit purchase of current service in the Kentucky Retirement Systems for time in the military service, the board will announce at least two (2) weeks in advance the period of time during which applications to purchase current service for military service may be submitted to the Kentucky Retirement Systems. The period of time for accepting applications shall not be less than four (4) weeks. Applications must be submitted in writing by the member.

 

      Section 2. At the close of the application period, an independent accounting firm will be engaged to determine the pro rata share of the funds available for each eligible applicant which shall be used to determine the amount of military service the applicant may purchase. (8 Ky.R. 542; eff. 5-5-82; Am. 18 Ky.R. 722; eff. 11-8-91.)

Notation

      RELATES TO: KRS 16.645(26), 61.555, 78.545(6)

      STATUTORY AUTHORITY: KRS 61.645(9)(e)

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 61.555(4) permits eligible members to receive current service in the retirement systems for up to four (4) years of military service. The cost of such service credit is calculated by the board with the member paying thirty-five (35) percent of the cost and the remaining sixty-five (65) percent is to be paid from funds specifically appropriated for this purpose. If no funds are available in the special appropriation account, the board may not accept employee payments. From time to time, when funds are appropriated for this provision, such funds may not be adequate to accommodate all members who may wish to purchase current service for military time. The board believes that all eligible members should have an equal chance to utilize appropriated funds and this administrative regulation is necessary to define the administrative procedures that will be followed when such funds are not sufficient to satisfy the demand from eligible members.