102 KAR 1:340. Calculation of final average salary if there is
a corresponding change in length of employment during any of the final three
(3) years immediately prior to retirement.
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 member’s
base daily rate of pay for each day added to the member’s annual contract in
excess of the member’s 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
member’s 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.)