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

Link to law: http://www.lrc.ky.gov/kar/102/001/340.htm
Published: 2015

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      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.)