161.661 Disability retirement.
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161.661 Disability retirement. (1) Any member who has completed five (5) or more years of accredited service in the public schools of Kentucky after July 1, 1941, may retire for disability and be <br>granted a disability allowance if found to be eligible as provided in this section. <br>Application for disability benefits shall be made within one (1) year of the last <br>contributing service in Kentucky, and the disability must have occurred during the <br>most recent period of employment in a position covered by the Teachers' Retirement <br>System and subsequent to the completion of five (5) years of teaching service in <br>Kentucky. A disability occurring during the regular vacation immediately following <br>the last period of active service in Kentucky or during an official leave for which <br>the member is entitled to make regular contributions to the retirement system, shall <br>be considered as having occurred during a period of active service. The annual <br>disability allowance shall be equal to sixty percent (60%) of the member's final <br>average salary. Members with twenty-seven (27) or more years of service credit are <br>eligible for service retirement only. (2) The provisions of KRS 161.520, 161.525, and subsections (3), (4), and (5) of this section shall not apply to disability retirees whose benefits were calculated on the <br>service retirement formula nor to survivors of these members. (3) Members shall earn one (1) year of entitlement to disability retirement, at sixty percent (60%) of the member's final average salary, for each four (4) years of <br>service in a covered position, but any member meeting the service requirement for <br>disability retirement shall be credited with no less than five (5) years of eligibility. (4) A member retired by reason of disability shall continue to earn service credit at the rate of one (1) year for each year retired for disability. This service shall be credited <br>to the member's account at the expiration of entitlement as defined in subsection (3) <br>of this section, or when the member's eligibility for disability benefits is terminated <br>upon recommendation of a medical review committee, and this service shall be used <br>in calculating benefits as provided in subsection (5) of this section, but under no <br>circumstances shall this service be used to provide the member with more than <br>twenty-seven (27) years of total service credit. The service credit shall be valued at <br>the same level as service earned by active members as provided under KRS 161.600 <br>and 161.620. (5) Any member retired by reason of disability and remaining disabled at the expiration of the entitlement period shall have his disability benefits recalculated using the <br>service retirement formula with service credit as set out in subsection (4) of this <br>section. The retirement allowance shall be calculated as set forth in KRS 161.620, <br>except that those persons less than sixty (60) years of age shall be considered as <br>sixty (60) years of age. Members having their disability benefits recalculated under <br>this subsection shall not be entitled to a benefit based upon an average of their three <br>(3) highest salaries as set forth in KRS 161.220(9), unless approved otherwise by <br>the board of trustees. (6) Members who have their disability retirement allowance recalculated at the expiration of the entitlement period shall continue to have coverage under the post-<br>retirement medical insurance program. Restrictions on employment shall remain in effect until the member attains age seventy (70) or until the member's eligibility is <br>discontinued. KRS 161.520 and 161.525 shall not apply to survivors of disability <br>retirees whose retirement allowances have been recalculated at the expiration of the <br>entitlement period. Members who have their disability retirement allowance <br>recalculated at the expiration of their entitlement period shall be entitled to a <br>minimum monthly allowance of five hundred dollars ($500) as the basic straight life <br>annuity. The minimum allowance shall be effective July 1, 1992, and shall apply to <br>those members who have had their allowance recalculated prior to that date and to <br>disability retirees who will have their benefit allowance recalculated on or after that <br>date. (7) Effective July 1, 1992, members retired for disability prior to July 1, 1964, shall be entitled to a minimum monthly allowance of five hundred dollars ($500) as their <br>basic straight life annuity and their surviving spouse shall be eligible for survivor <br>benefits as provided in KRS 161.520(1)(a) and (b). (8) Any member retired by reason of disability may voluntarily waive disability benefits and return to teaching or any member, who is age sixty (60) years or older, may <br>elect to waive disability benefits and retire for service on the basis of service <br>credited to the member on the effective date of the disability retirement. (9) In order to qualify for retirement by reason of disability a member must suffer from a physical or mental condition presumed to be permanent in duration and of a nature <br>as to render the member incapable of being gainfully employed in a covered <br>position. The incapability must be revealed by a competent examination by a <br>licensed physician or physicians and must be approved by a majority of a medical <br>review committee. (10) A member retired by reason of disability shall be required to undergo periodic examinations at the discretion of the board of trustees to determine whether the <br>disability allowance shall be continued. When examination and recommendation of <br>a medical review committee indicate the disability no longer exists, the allowance <br>shall be discontinued. (11) Eligibility for payment shall begin on the first day of the month following receipt of the application in the Teachers' Retirement System office, or the first of the month <br>next following the last payment of salary or sick leave benefits by the employer, <br>whichever is the later date. (12) No person who receives a disability allowance may be employed in a position that entails duties or qualification requirements similar to positions subject to <br>participation in the retirement system either within or without the State of <br>Kentucky. So doing shall constitute a misdemeanor and shall result in loss of the <br>allowance from the first date of this service. A member who applies for and is <br>approved for disability retirement on or after July 1, 2002, and whose annual <br>disability benefit is less than forty thousand dollars ($40,000) may earn income in <br>any occupation other than covered employment only to the extent that the annual <br>income from the other employment when added to the annual disability benefit does <br>not exceed forty thousand dollars ($40,000). For any member who exceeds this <br>limit as a result of income from other employment, the Kentucky Teachers' Retirement System shall reduce the member's disability benefit on a dollar-for-<br>dollar basis for each dollar that the member's combined annual disability benefit <br>and annual income from other employment exceeds forty thousand dollars <br>($40,000). The board of trustees may annually increase the forty thousand dollar <br>($40,000) limit by the percentage increase in the annual average of the consumer <br>price index for all urban consumers for the most recent calendar year as published <br>by the Federal Bureau of Labor Statistics, not to exceed five percent (5%). (13) All members who applied for disability retirement before July 1, 2002, and were approved as a result of that application shall be subject to the income limitations as <br>they existed on June 30, 2002, until July 1, 2006. Effective July 1, 2006, the twenty-<br>seven thousand dollar ($27,000) limitation shall be increased to forty thousand <br>dollars ($40,000) and may be adjusted by the board of trustees by the consumer <br>price index in the manner described in subsection (12) of this section. The recipient <br>of a disability allowance who engages in any gainful occupation other than covered <br>employment must make a report of the duties involved, compensation received, and <br>any other pertinent information required by the board of trustees. (14) The board of trustees shall designate medical review committees, each consisting of three (3) licensed physicians. A medical review committee shall pass upon all <br>applications for disability retirement and upon all applicant statements, medical <br>certifications, and examinations submitted in connection with disability <br>applications. The disposition of each case shall be recommended by a medical <br>review committee in writing to the retirement system. Members of a medical review <br>committee shall follow administrative regulations regarding procedures as the board <br>of trustees may enact and shall be paid reasonable fees and expenses as authorized <br>by the board of trustees in compliance with the provisions of KRS 161.330 and <br>161.340. The retirement system may secure additional medical examinations and <br>information as it deems necessary. A member may appeal any final agency decision <br>denying his or her disability retirement application pursuant to the provisions of <br>KRS 161.250(2). (15) A disability may be presumed to be permanent if the condition creating the disability may be reasonably expected to continue for one (1) year or more from the <br>date of application for disability benefits. (16) Any member who has voluntarily waived disability benefits or whose disability benefits have been discontinued on recommendation of a medical review <br>committee, may apply for reinstatement of disability benefits. The application for <br>reinstatement must be made to the retirement system within twelve (12) months of <br>the date disability benefits terminated. If the termination of benefits were voluntary, <br>the reinstatement may be made without medical examination if application is made <br>within three (3) months of the termination date. Other applications for reinstatement <br>will be processed in the same manner as new applications for benefits. (17) No person who is receiving disability benefits under this section may be employed in a position which qualifies the person for membership in a retirement system <br>financed wholly or in part with public funds. Employment in a position prohibited by this subsection shall result in disqualification for those disability benefits from <br>the date of employment in the prohibited position. (18) Any person who is receiving benefits and becomes disqualified from receiving those benefits under this section, or becomes disqualified from receiving a portion <br>of those benefits due to income from other than covered employment, shall <br>immediately notify the Teachers' Retirement System of this disqualification in <br>writing and shall return all benefits paid after the date of disqualification. Failure to <br>comply with these provisions shall create an indebtedness of that person to the <br>Teachers' Retirement System. Interest at the rate of eight percent (8%) per annum <br>shall be charged if the debt is not repaid within sixty (60) days after the date of <br>disqualification. Failure to repay this debt creates a lien in favor of the Teachers' <br>Retirement System upon all property of the person who improperly receives benefits <br>and does not repay those benefits. The Kentucky Teachers' Retirement System may, <br>in order to collect an outstanding debt, reduce or terminate any benefit that a <br>member is otherwise entitled to receive. Effective: July 1, 2006 <br>History: Amended 2006 Ky. Acts ch. 189, sec. 3, effective July 1, 2006. -- Amended 2002 Ky. Acts ch. 275, sec. 31, effective July 1, 2002. -- Amended 1996 Ky. Acts <br>ch. 359, sec. 17, effective July 1, 1996. -- Amended 1994 Ky. 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PDF...\u003c/div\u003e\u003cscript type=\"text/javascript\"\u003e var pdf_url = 'https://law.justia.com/codes/kentucky/2009/161-00/pdf/661.pdf'; $(document).ready(function() { var embedwindow = $(\"#embed_document\"); if ($.browser.msie){ embedwindow.html('\u003cembed src=\"'+pdf_url+'\" width=\"100%\" height=\"100%\"\u003e\u003c/embed\u003e'); } else { embedwindow.html('\u003ciframe style=\"width:100%; height:100%;\" src=\"https://docs.google.com/gview?url='+window.escape(pdf_url)+'\u0026embedded=true\" frameborder=\"0\"\u003e\u003c/iframe\u003e'); } });\u003c/script\u003e\u003cbr\u003e\u003cbr\u003e\u003cnoframes\u003e161.661 Disability retirement. (1) Any member who has completed five (5) or more years of accredited service in the public schools of Kentucky after July 1, 1941, may retire for disability and be \u003cbr\u003egranted a disability allowance if found to be eligible as provided in this section. \u003cbr\u003eApplication for disability benefits shall be made within one (1) year of the last \u003cbr\u003econtributing service in Kentucky, and the disability must have occurred during the \u003cbr\u003emost recent period of employment in a position covered by the Teachers' Retirement \u003cbr\u003eSystem and subsequent to the completion of five (5) years of teaching service in \u003cbr\u003eKentucky. A disability occurring during the regular vacation immediately following \u003cbr\u003ethe last period of active service in Kentucky or during an official leave for which \u003cbr\u003ethe member is entitled to make regular contributions to the retirement system, shall \u003cbr\u003ebe considered as having occurred during a period of active service. The annual \u003cbr\u003edisability allowance shall be equal to sixty percent (60%) of the member's final \u003cbr\u003eaverage salary. Members with twenty-seven (27) or more years of service credit are \u003cbr\u003eeligible for service retirement only. (2) The provisions of KRS 161.520, 161.525, and subsections (3), (4), and (5) of this section shall not apply to disability retirees whose benefits were calculated on the \u003cbr\u003eservice retirement formula nor to survivors of these members. (3) Members shall earn one (1) year of entitlement to disability retirement, at sixty percent (60%) of the member's final average salary, for each four (4) years of \u003cbr\u003eservice in a covered position, but any member meeting the service requirement for \u003cbr\u003edisability retirement shall be credited with no less than five (5) years of eligibility. (4) A member retired by reason of disability shall continue to earn service credit at the rate of one (1) year for each year retired for disability. This service shall be credited \u003cbr\u003eto the member's account at the expiration of entitlement as defined in subsection (3) \u003cbr\u003eof this section, or when the member's eligibility for disability benefits is terminated \u003cbr\u003eupon recommendation of a medical review committee, and this service shall be used \u003cbr\u003ein calculating benefits as provided in subsection (5) of this section, but under no \u003cbr\u003ecircumstances shall this service be used to provide the member with more than \u003cbr\u003etwenty-seven (27) years of total service credit. The service credit shall be valued at \u003cbr\u003ethe same level as service earned by active members as provided under KRS 161.600 \u003cbr\u003eand 161.620. (5) Any member retired by reason of disability and remaining disabled at the expiration of the entitlement period shall have his disability benefits recalculated using the \u003cbr\u003eservice retirement formula with service credit as set out in subsection (4) of this \u003cbr\u003esection. The retirement allowance shall be calculated as set forth in KRS 161.620, \u003cbr\u003eexcept that those persons less than sixty (60) years of age shall be considered as \u003cbr\u003esixty (60) years of age. Members having their disability benefits recalculated under \u003cbr\u003ethis subsection shall not be entitled to a benefit based upon an average of their three \u003cbr\u003e(3) highest salaries as set forth in KRS 161.220(9), unless approved otherwise by \u003cbr\u003ethe board of trustees. (6) Members who have their disability retirement allowance recalculated at the expiration of the entitlement period shall continue to have coverage under the post-\u003cbr\u003eretirement medical insurance program. Restrictions on employment shall remain in effect until the member attains age seventy (70) or until the member's eligibility is \u003cbr\u003ediscontinued. KRS 161.520 and 161.525 shall not apply to survivors of disability \u003cbr\u003eretirees whose retirement allowances have been recalculated at the expiration of the \u003cbr\u003eentitlement period. Members who have their disability retirement allowance \u003cbr\u003erecalculated at the expiration of their entitlement period shall be entitled to a \u003cbr\u003eminimum monthly allowance of five hundred dollars (\u0026#36;500) as the basic straight life \u003cbr\u003eannuity. The minimum allowance shall be effective July 1, 1992, and shall apply to \u003cbr\u003ethose members who have had their allowance recalculated prior to that date and to \u003cbr\u003edisability retirees who will have their benefit allowance recalculated on or after that \u003cbr\u003edate. (7) Effective July 1, 1992, members retired for disability prior to July 1, 1964, shall be entitled to a minimum monthly allowance of five hundred dollars (\u0026#36;500) as their \u003cbr\u003ebasic straight life annuity and their surviving spouse shall be eligible for survivor \u003cbr\u003ebenefits as provided in KRS 161.520(1)(a) and (b). (8) Any member retired by reason of disability may voluntarily waive disability benefits and return to teaching or any member, who is age sixty (60) years or older, may \u003cbr\u003eelect to waive disability benefits and retire for service on the basis of service \u003cbr\u003ecredited to the member on the effective date of the disability retirement. (9) In order to qualify for retirement by reason of disability a member must suffer from a physical or mental condition presumed to be permanent in duration and of a nature \u003cbr\u003eas to render the member incapable of being gainfully employed in a covered \u003cbr\u003eposition. The incapability must be revealed by a competent examination by a \u003cbr\u003elicensed physician or physicians and must be approved by a majority of a medical \u003cbr\u003ereview committee. (10) A member retired by reason of disability shall be required to undergo periodic examinations at the discretion of the board of trustees to determine whether the \u003cbr\u003edisability allowance shall be continued. When examination and recommendation of \u003cbr\u003ea medical review committee indicate the disability no longer exists, the allowance \u003cbr\u003eshall be discontinued. (11) Eligibility for payment shall begin on the first day of the month following receipt of the application in the Teachers' Retirement System office, or the first of the month \u003cbr\u003enext following the last payment of salary or sick leave benefits by the employer, \u003cbr\u003ewhichever is the later date. (12) No person who receives a disability allowance may be employed in a position that entails duties or qualification requirements similar to positions subject to \u003cbr\u003eparticipation in the retirement system either within or without the State of \u003cbr\u003eKentucky. So doing shall constitute a misdemeanor and shall result in loss of the \u003cbr\u003eallowance from the first date of this service. A member who applies for and is \u003cbr\u003eapproved for disability retirement on or after July 1, 2002, and whose annual \u003cbr\u003edisability benefit is less than forty thousand dollars (\u0026#36;40,000) may earn income in \u003cbr\u003eany occupation other than covered employment only to the extent that the annual \u003cbr\u003eincome from the other employment when added to the annual disability benefit does \u003cbr\u003enot exceed forty thousand dollars (\u0026#36;40,000). For any member who exceeds this \u003cbr\u003elimit as a result of income from other employment, the Kentucky Teachers' Retirement System shall reduce the member's disability benefit on a dollar-for-\u003cbr\u003edollar basis for each dollar that the member's combined annual disability benefit \u003cbr\u003eand annual income from other employment exceeds forty thousand dollars \u003cbr\u003e(\u0026#36;40,000). The board of trustees may annually increase the forty thousand dollar \u003cbr\u003e(\u0026#36;40,000) limit by the percentage increase in the annual average of the consumer \u003cbr\u003eprice index for all urban consumers for the most recent calendar year as published \u003cbr\u003eby the Federal Bureau of Labor Statistics, not to exceed five percent (5%). (13) All members who applied for disability retirement before July 1, 2002, and were approved as a result of that application shall be subject to the income limitations as \u003cbr\u003ethey existed on June 30, 2002, until July 1, 2006. Effective July 1, 2006, the twenty-\u003cbr\u003eseven thousand dollar (\u0026#36;27,000) limitation shall be increased to forty thousand \u003cbr\u003edollars (\u0026#36;40,000) and may be adjusted by the board of trustees by the consumer \u003cbr\u003eprice index in the manner described in subsection (12) of this section. The recipient \u003cbr\u003eof a disability allowance who engages in any gainful occupation other than covered \u003cbr\u003eemployment must make a report of the duties involved, compensation received, and \u003cbr\u003eany other pertinent information required by the board of trustees. (14) The board of trustees shall designate medical review committees, each consisting of three (3) licensed physicians. A medical review committee shall pass upon all \u003cbr\u003eapplications for disability retirement and upon all applicant statements, medical \u003cbr\u003ecertifications, and examinations submitted in connection with disability \u003cbr\u003eapplications. The disposition of each case shall be recommended by a medical \u003cbr\u003ereview committee in writing to the retirement system. Members of a medical review \u003cbr\u003ecommittee shall follow administrative regulations regarding procedures as the board \u003cbr\u003eof trustees may enact and shall be paid reasonable fees and expenses as authorized \u003cbr\u003eby the board of trustees in compliance with the provisions of KRS 161.330 and \u003cbr\u003e161.340. The retirement system may secure additional medical examinations and \u003cbr\u003einformation as it deems necessary. A member may appeal any final agency decision \u003cbr\u003edenying his or her disability retirement application pursuant to the provisions of \u003cbr\u003eKRS 161.250(2). (15) A disability may be presumed to be permanent if the condition creating the disability may be reasonably expected to continue for one (1) year or more from the \u003cbr\u003edate of application for disability benefits. (16) Any member who has voluntarily waived disability benefits or whose disability benefits have been discontinued on recommendation of a medical review \u003cbr\u003ecommittee, may apply for reinstatement of disability benefits. The application for \u003cbr\u003ereinstatement must be made to the retirement system within twelve (12) months of \u003cbr\u003ethe date disability benefits terminated. If the termination of benefits were voluntary, \u003cbr\u003ethe reinstatement may be made without medical examination if application is made \u003cbr\u003ewithin three (3) months of the termination date. Other applications for reinstatement \u003cbr\u003ewill be processed in the same manner as new applications for benefits. (17) No person who is receiving disability benefits under this section may be employed in a position which qualifies the person for membership in a retirement system \u003cbr\u003efinanced wholly or in part with public funds. Employment in a position prohibited by this subsection shall result in disqualification for those disability benefits from \u003cbr\u003ethe date of employment in the prohibited position. (18) Any person who is receiving benefits and becomes disqualified from receiving those benefits under this section, or becomes disqualified from receiving a portion \u003cbr\u003eof those benefits due to income from other than covered employment, shall \u003cbr\u003eimmediately notify the Teachers' Retirement System of this disqualification in \u003cbr\u003ewriting and shall return all benefits paid after the date of disqualification. Failure to \u003cbr\u003ecomply with these provisions shall create an indebtedness of that person to the \u003cbr\u003eTeachers' Retirement System. Interest at the rate of eight percent (8%) per annum \u003cbr\u003eshall be charged if the debt is not repaid within sixty (60) days after the date of \u003cbr\u003edisqualification. Failure to repay this debt creates a lien in favor of the Teachers' \u003cbr\u003eRetirement System upon all property of the person who improperly receives benefits \u003cbr\u003eand does not repay those benefits. The Kentucky Teachers' Retirement System may, \u003cbr\u003ein order to collect an outstanding debt, reduce or terminate any benefit that a \u003cbr\u003emember is otherwise entitled to receive. Effective: July 1, 2006 \u003cbr\u003eHistory: Amended 2006 Ky. Acts ch. 189, sec. 3, effective July 1, 2006. -- Amended 2002 Ky. Acts ch. 275, sec. 31, effective July 1, 2002. -- Amended 1996 Ky. Acts \u003cbr\u003ech. 359, sec. 17, effective July 1, 1996. -- Amended 1994 Ky. 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