CHAPTER 214
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1
CHAPTER 214
( HB 354 )
AN ACT relating to retiree health insurance reimbursements for school district employees.
Be it enacted by the General Assembly of the Commonwealth of Kentucky:
Section 1. KRS 61.637 is amended to read as follows:
(1) A retired member who is receiving monthly retirement payments under any of the provisions of KRS 61.510 to
61.705 and 78.510 to 78.852 and who is reemployed as an employee by a participating agency prior to August
1, 1998, shall have his or her retirement payments suspended for the duration of reemployment. Monthly
payments shall not be suspended for a retired member who is reemployed if he or she anticipates that he or she
will receive less than the maximum permissible earnings as provided by the Federal Social Security Act in
compensation as a result of reemployment during the calendar year. The payments shall be suspended at the
beginning of the month in which the reemployment occurs.
(2) Employer and employee contributions shall be made as provided in KRS 61.510 to 61.705 and 78.510 to
78.852 on the compensation paid during reemployment, except where monthly payments were not suspended
as provided in subsection (1) of this section or would not increase the retired member's last monthly retirement
allowance by at least one dollar ($1), and the member shall be credited with additional service credit.
(3) In the month following the termination of reemployment, retirement allowance payments shall be reinstated
under the plan under which the member was receiving payments prior to reemployment.
(4) (a) Notwithstanding the provisions of this section, the payments suspended in accordance with subsection
(1) of this section shall be paid retroactively to the retired member, or his or her estate, if he or she does
not receive more than the maximum permissible earnings as provided by the Federal Social Security
Act in compensation from participating agencies during any calendar year of reemployment.
(b) If the retired member is paid suspended payments retroactively in accordance with this section,
employee contributions deducted during his or her period of reemployment, if any, shall be refunded to
the retired employee, and no service credit shall be earned for the period of reemployment.
(c) If the retired member is not eligible to be paid suspended payments for his or her period of
reemployment as an employee, his or her retirement allowance shall be recomputed under the plan
under which the member was receiving payments prior to reemployment as follows:
1. The retired member's final compensation shall be recomputed using creditable compensation for
his or her period of reemployment; however, the final compensation resulting from the
recalculation shall not be less than that of the member when his or her retirement allowance was
last determined;
2. If the retired member initially retired on or subsequent to his or her normal retirement date, his or
her retirement allowance shall be recomputed by using the formula in KRS 61.595(1);
3. If the retired member initially retired prior to his or her normal retirement date, his or her
retirement allowance shall be recomputed using the formula in KRS 61.595(2), except that the
member's age used in computing benefits shall be his or her age at the time of his or her initial
retirement increased by the number of months of service credit earned for service performed
during reemployment;
4. The retirement allowance payments resulting from the recomputation under this subsection shall
be payable in the month following the termination of reemployment in lieu of payments under
subparagraph 3. of this paragraph. The member shall not receive less in benefits as a result of the
recomputation than he or she was receiving prior to reemployment or would receive as
determined under KRS 61.691; and
5. Any retired member who was reemployed prior to March 26, 1974, shall begin making
contributions to the system in accordance with the provisions of this section on the first day of
the month following March 26, 1974. ACTS OF THE GENERAL ASSEMBLY 2
(5) A retired member, or his or her estate, shall pay to the retirement fund the total amount of payments which are
not suspended in accordance with subsection (1) of this section if the member received more than the
maximum permissible earnings as provided by the Federal Social Security Act in compensation from
participating agencies during any calendar year of reemployment, except the retired member or his or her
estate may repay the lesser of the total amount of payments which were not suspended or fifty cents ($0.50) of
each dollar earned over the maximum permissible earnings during reemployment if under age sixty-five (65),
or one dollar ($1) for every three dollars ($3) earned if over age sixty-five (65).
(6) (a) "Reemployment" or "reinstatement" as used in this section shall not include a retired member who has
been ordered reinstated by the Personnel Board under authority of KRS 18A.095.
(b) A retired member who has been ordered reinstated by the Personnel Board under authority of KRS
18A.095 or by court order or by order of the Human Rights Commission and accepts employment by an
agency participating in the Kentucky Employees Retirement System or County Employees Retirement
System shall void his or her retirement by reimbursing the system in the full amount of his or her
retirement allowance payments received.
(7) (a) Effective August 1, 1998, the provisions of subsections (1) to (4) of this section shall no longer apply to
a retired member who is reemployed in a position covered by the same retirement system from which
the member retired. Reemployed retired members shall be treated as new members upon reemployment.
Any retired member whose reemployment date preceded August 1, 1998, who does not elect, within
sixty (60) days of notification by the retirement systems, to remain under the provisions of subsections
(1) to (4) of this section shall be deemed to have elected to participate under this subsection.
(b) A retired member whose disability retirement was discontinued pursuant to KRS 61.615 and who is
reemployed in one (1) of the systems administered by the Kentucky Retirement Systems or County
Employees Retirement System prior to his or her normal retirement date shall have his or her accounts
combined upon termination for determining eligibility for benefits. If the member is eligible for
retirement, the member's service and creditable compensation earned as a result of his or her
reemployment shall be used in the calculation of benefits, except that the member's final compensation
shall not be less than the final compensation last used in determining his or her retirement allowance.
The member shall not change beneficiary or payment option designations. This provision shall apply to
members reemployed on or after August 1, 1998.
(8) If a retired member accepts employment or begins serving as a volunteer with an employer participating in the
systems administered by Kentucky Retirement Systems or County Employees Retirement System within
twelve (12) months of his or her retirement date, the retired member shall notify the Authority and the
participating employer shall submit the information required or requested by the Authority to confirm the
individual's employment or volunteer status. The retired member shall not be required to notify the Authority
regarding any employment or volunteer service with a participating agency that is accepted after twelve (12)
months following his or her retirement date.
(9) If the retired member is under a contract to provide services as an independent contractor or leased employee
to an employer participating in the systems administered by Kentucky Retirement Systems or County
Employees Retirement System within twelve (12) months of his or her retirement date, the member shall
submit a copy of that contract to the Authority, and the Authority shall determine if the member is an
independent contractor or leased employee for purposes of retirement benefits. The retired member and the
participating employer shall submit the information required or requested by the Authority to confirm the
individual's status as an independent contractor or leased employee. The retired member shall not be required
to notify the Authority regarding any services entered into as an independent contractor or leased employee
with a participating agency that the employee enters into after twelve (12) months following his or her
retirement date.
(10) If a member is receiving a retirement allowance, or has filed the forms required for a retirement allowance, and
is employed within one (1) month of the member's initial retirement date in a position that is required to
participate in the same retirement system from which the member retired, the member's retirement shall be
voided and the member shall repay to the retirement system all benefits received. The member shall contribute
to the member account established for him or her prior to his or her voided retirement. The retirement
allowance for which the member shall be eligible upon retirement shall be determined by total service and
creditable compensation.
(11) (a) If a member of the Kentucky Employees Retirement System retires from a department which
participates in more than one (1) retirement system and is reemployed within one (1) month of his or CHAPTER 214
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her initial retirement date by the same department in a position participating in another retirement
system, the retired member's retirement allowance shall be suspended for the first month of his or her
retirement, and the member shall repay to the retirement system all benefits received for the month.
(b) A retired member of the County Employees Retirement System who after initial retirement is hired by
the county from which the member retired shall be considered to have been hired by the same
employer.
(12) (a) If a hazardous member who retired prior to age fifty-five (55), or a nonhazardous member who retired
prior to age sixty-five (65), is reemployed within six (6) months of the member's termination by the
same employer, the member shall obtain from his or her previous and current employers a copy of the
job description established by the employers for the position and a statement of the duties performed by
the member for the position from which he or she retired and for the position in which he or she has
been reemployed.
(b) The job descriptions and statements of duties shall be filed with the retirement office.
(13) If the retirement system determines that the retired member has been employed in a position with the same
principal duties as the position from which the member retired:
(a) The member's retirement allowance shall be suspended during the period that begins on the month in
which the member is reemployed and ends six (6) months after the member's termination;
(b) The retired member shall repay to the retirement system all benefits paid from systems administered by
Kentucky Retirement Systems or County Employees Retirement System under reciprocity, including
medical insurance benefits, that the member received after reemployment began;
(c) Upon termination, or subsequent to expiration of the six (6) month period from the date of termination,
the retired member's retirement allowance based on his or her initial retirement account shall no longer
be suspended, and the member shall receive the amount to which he or she is entitled, including an
increase as provided by KRS 61.691;
(d) Except as provided in subsection (7) of this section, if the position in which a retired member is
employed after initial retirement is a regular full-time position, the retired member shall contribute to a
second member account established for him or her in the retirement system. Service credit gained after
the member's date of reemployment shall be credited to the second member account; and
(e) Upon termination, the retired member shall be entitled to benefits payable from his or her second
retirement account.
(14) (a) If the retirement system determines that the retired member has not been reemployed in a position with
the same principal duties as the position from which he or she retired, the retired member shall continue
to receive his or her retirement allowance.
(b) If the position is a regular full-time position, the member shall contribute to a second member account
in the retirement system.
(15) (a) If a retired member is reemployed at least one (1) month after initial retirement in a different position,
or at least six (6) months after initial retirement in the same position, and prior to normal retirement age,
the retired member shall contribute to a second member account in the retirement system and continue
to receive a retirement allowance from the first member account.
(b) Service credit gained after reemployment shall be credited to the second member account. Upon
termination, the retired member shall be entitled to benefits payable from the second member account.
(16) A retired member who is reemployed and contributing to a second member account shall not be eligible to
purchase service credit under any of the provisions of KRS 16.505 to 16.652, 61.510 to 61.705, or 78.510 to
78.852 which he or she was eligible to purchase prior to his or her initial retirement.
(17) Notwithstanding any provision of subsections (1) to (7)(a) and (10) to (15) of this section, the following shall
apply to retired members who are reemployed by an agency participating in one (1) of the systems
administered by Kentucky Retirement Systems or County Employees Retirement System on or after
September 1, 2008:
(a) If a member is receiving a retirement allowance from one (1) of the systems administered by Kentucky
Retirement Systems or County Employees Retirement System, or has filed the forms required to receive ACTS OF THE GENERAL ASSEMBLY 4
a retirement allowance from one (1) of the systems administered by Kentucky Retirement Systems or
County Employees Retirement System, and is employed in a regular full-time position required to
participate in one (1) of the systems administered by Kentucky Retirement Systems or County
Employees Retirement System or is employed in a position that is not considered regular full-time with
an agency participating in one (1) of the systems administered by Kentucky Retirement Systems or
County Employees Retirement System within one (1) month following the member's initial retirement
date, the member's retirement shall be voided, and the member shall repay to the retirement system all
benefits received, including any health insurance benefits. If the member is returning to work in a
regular full-time position required to participate in one (1) of the systems administered by Kentucky
Retirement Systems:
1. The member shall contribute to a member account established for him or her in one (1) of the
systems administered by Kentucky Retirement Systems or County Employees Retirement
System, and employer contributions shall be paid on behalf of the member by the participating
employer; and
2. Upon subsequent retirement, the member shall be eligible for a retirement allowance based upon
total service and creditable compensation, including any additional service or creditable
compensation earned after his or her initial retirement was voided;
(b) If a member is receiving a retirement allowance from one (1) of the systems administered by Kentucky
Retirement Systems or County Employees Retirement System and is employed in a regular full-time
position required to participate in one (1) of the systems administered by Kentucky Retirement Systems
or County Employees Retirement System after a one (1) month period following the member's initial
retirement date, the member may continue to receive his or her retirement allowance during the period
of reemployment subject to the following provisions:
1. If a member is reemployed by a participating agency within twelve (12) months of the member's
retirement date, the participating agency shall certify in writing on a form prescribed by the
Authority that no prearranged agreement existed between the employee and agency prior to the
employee's retirement for the employee to return to work with the participating agency. If an
elected official is reelected to a new term of office in the same position as the elected official
held prior to retirement and takes office within twelve (12) months of his or her retirement date,
he or she shall be deemed by the Authority as having a prearranged agreement under the
provisions of this subparagraph and shall have his or her retirement voided. If the participating
agency fails to complete the certification, the member's retirement shall be voided and the
provisions of paragraph (a) of this subsection shall apply to the member and the employer.
Employment that is accepted by the retired member after twelve (12) months following the
member's retirement date shall not constitute a prearranged agreement under this paragraph;
2. Notwithstanding any other provision of KRS Chapter 16, 61, or 78 to the contrary, the member
shall not contribute to the systems and shall not earn any additional benefits for any work
performed during the period of reemployment;
3. Except as provided by KRS 70.291 to 70.293, 95.022, and 164.952 and except for any retiree
employed as a school resource officer as defined by KRS 158.441, the employer shall pay
employer contributions as specified by KRS 61.565, 61.702, and 78.635, as applicable, on all
creditable compensation earned by the employee during the period of reemployment. The
additional contributions paid shall be used to reduce the unfunded actuarial liability of the
systems; and
4. Except as provided by KRS 70.291 to 70.293, 95.022, and 164.952 and except for any retiree
employed as a school resource officer as defined by KRS 158.441, the employer shall be
required to reimburse the systems for the cost of the health insurance premium paid by the
systems to provide coverage for the retiree, not to exceed the cost of the single premium.
Effective July 1, 2015, local school boards shall not be required to pay the reimbursement
required by this subparagraph for retirees employed by the board for eighty (80) days or less
during the fiscal year. Effective August 1, 2024, the Department of Education shall pay for the
health reimbursements required by this subparagraph for a retiree who participated in a
hazardous position prior to July 1, 2003, in one (1) of the systems administered by the
Kentucky Retirement Systems or the County Employees Retirement System, and who is
reemployed by a local school board; CHAPTER 214
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(c) Notwithstanding paragraphs (a) and (b) of this subsection, a retired member who qualifies as a
volunteer for an employer participating in one (1) of the systems administered by Kentucky Retirement
Systems or County Employees Retirement System and who is receiving reimbursement of actual
expenses, a nominal fee for his or her volunteer services, or both, shall not be considered an employee
of the participating employer and shall not be subject to paragraphs (a) and (b) of this subsection if:
1. Prior to the retired member's most recent retirement date, he or she did not receive creditable
compensation from the participating employer in which the retired member is performing
volunteer services;
2. Any reimbursement or nominal fee received prior to the retired member's most recent retirement
date has not been credited as creditable compensation to the member's account or utilized in the
calculation of the retired member's benefits;
3. The retired member has not purchased or received service credit under any of the provisions of
KRS 61.510 to 61.705 or 78.510 to 78.852 for service with the participating employer for which
the retired member is performing volunteer services; and
4. Other than the status of volunteer, the retired member does not become an employee, leased
employee, or independent contractor of the employer for which he or she is performing volunteer
services for a period of at least twelve (12) months following the retired member's most recent
retirement date.
If a retired member, who provided volunteer services with a participating employer under this
paragraph violates any provision of this paragraph, then he or she shall be deemed an employee of the
participating employer as of the date he or she began providing volunteer services and both the retired
member and the participating employer shall be subject to paragraphs (a) and (b) of this subsection for
the period of volunteer service;
(d) Notwithstanding any provision of this section, any mayor or member of a city legislative body shall not
be required to resign from his or her position as mayor or as a member of the city legislative body in
order to begin drawing benefits from the systems administered by Kentucky Retirement Systems or
subject to any provision of this section as it relates solely to his or her service as a mayor or member of
the city legislative body if the mayor or member of a city legislative body:
1. Has not participated in the County Employees Retirement System prior to retirement, but is
otherwise eligible to retire from the Kentucky Employees Retirement System or the State Police
Retirement System; or
2. Has been or is participating in the County Employees Retirement System and is at least sixty-two
(62) years of age. If a mayor or member of a city legislative body who is at least sixty-two (62)
years of age retires from the systems administered by Kentucky Retirement Systems but remains
in office after his or her effective retirement date, the mayor or member of the city legislative
body shall not accrue any further service credit or benefits in the systems administered by
Kentucky Retirement Systems for any employment occurring on or after the effective retirement
date;
(e) Notwithstanding any provision of this section, any current or future part-time adjunct instructor for the
Kentucky Fire Commission who has not participated in the Kentucky Employees Retirement System
prior to retirement, but who is otherwise eligible to retire from the County Employees Retirement
System, shall not be:
1. Required to resign from his or her position as a part-time adjunct instructor for the Kentucky Fire
Commission in order to begin drawing benefits from the County Employees Retirement System;
or
2. Subject to any provision of this section as it relates solely to his or her service as a part-time
adjunct instructor for the Kentucky Fire Commission;
(f) If a member is receiving a retirement allowance from any of the retirement systems administered by the
Kentucky Retirement Systems or County Employees Retirement System and enters into a contract or
becomes a leased employee of an employer under contract with an employer participating in one (1) of
the systems administered by the Kentucky Retirement Systems or County Employees Retirement
System: ACTS OF THE GENERAL ASSEMBLY 6
1. At any time following retirement, if the Authority determines the employment arrangement does
qualify as an independent contractor or leased employee, the member may continue to receive his
or her retirement allowance during the period of the contract;
2. Within one (1) month following the member's initial retirement date, if the Authority determines
the employment arrangement does not qualify as an independent contractor or leased employee,
the member's retirement shall be voided in accordance with paragraph (a) of this subsection;
3. After one (1) month but within twelve (12) months following the member's initial retirement, if
the Authority determines the employment arrangement does not qualify as an independent
contractor or leased employee and that a prearranged agreement existed between the member and
the agency for the member to return to work with the agency, the member's retirement shall be
voided in accordance with paragraph (a) of this subsection; and
4. After a twelve (12) month period following the member's initial retirement, the member may
continue to receive his or her retirement allowance during the period of the contract and the
member shall not be required to notify the system or submit any documentation for purposes of
this section to the system.
The initiation of a contract or the initial date of the leased employment of a retired member by a
participating agency that occurs after twelve (12) months or more following the retired member's
retirement date shall not constitute a prearranged agreement under this subsection; and
(g) The Authority shall issue a final determination regarding a certification of the absence of a prearranged
agreement or the retired member's qualification as an independent contractor or leased employee as
required under this section no later than thirty (30) days after the retired member and participating
employer provide all required forms and additional information required by the Authority.
(18) The Authority shall promulgate administrative regulations to implement the requirements of this section,
including incorporating by reference board-prescribed forms that a retired member and participating agency
shall provide the systems under subsections (8), (9), and (17) of this section.
Section 2. KRS 78.5540 is amended to read as follows:
(1) A retired member whose disability retirement was discontinued pursuant to KRS 78.5528 and who is
reemployed by an employer participating in the system or the Kentucky Retirement Systems prior to his or her
normal retirement date shall have his or her accounts combined upon termination for determining eligibility
for benefits. If the member is eligible for retirement, the member's service and creditable compensation earned
as a result of his or her reemployment shall be used in the calculation of benefits, except that the member's
final compensation shall not be less than the final compensation last used in determining his or her retirement
allowance. The member shall not change beneficiary or payment option designations.
(2) (a) If a retired member accepts employment or begins serving as a volunteer with an employer participating
in the systems administered by Kentucky Retirement Systems or the County Employees Retirement
System within twelve (12) months of his or her retirement date, the retired member shall notify the
Authority and the participating employer shall submit the information required or requested by the
Authority to confirm the individual's employment or volunteer status. The retired member shall not be
required to notify the Authority regarding any employment or volunteer service with a participating
agency that is accepted after twelve (12) months following his or her retirement date.
(b) If the retired member is under a contract to provide services as an independent contractor or leased
employee to an employer participating in the systems administered by Kentucky Retirement Systems or
the County Employees Retirement System within twelve (12) months of his or her retirement date, the
member shall submit a copy of that contract to the Authority, and the Authority shall determine if the
member is an independent contractor or leased employee for purposes of retirement benefits. The
retired member and the participating employer shall submit the information required or requested by the
Authority to confirm the individual's status as an independent contractor or leased employee. The
retired member shall not be required to notify the Authority regarding any services entered into as an
independent contractor or leased employee with a participating agency that the employee enters into
after twelve (12) months following his or her retirement date.
(3) Retired members of the County Employees Retirement System who returned to work with an employer that
participates in the County Employees Retirement System or Kentucky Retirement Systems prior to September
1, 2008, shall be governed by the provisions of KRS 61.637(1) to (16). CHAPTER 214
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(4) The following shall apply to retired members of the County Employees Retirement System who are
reemployed on or after September 1, 2008, by an agency participating in the systems administered by the
County Employees Retirement System or the Kentucky Retirement Systems:
(a) If a retired member is receiving a retirement allowance from the County Employees Retirement System,
or has filed the forms required to receive a retirement allowance from the County Employees
Retirement System, and is employed in a regular full-time position required to participate in the County
Employees Retirement System or one (1) of the systems administered by the Kentucky Retirement
Systems or is employed in a position that is not considered regular full-time with an employer
participating in the County Employees Retirement System or in one (1) of the systems administered by
the Kentucky Retirement Systems within one (1) month following the member's initial retirement date,
the member's retirement shall be voided, and the member shall repay to the system all benefits received,
including any health insurance benefits. If the retired member is returning to work in a regular full-time
position required to participate in the County Employees Retirement System:
1. The member shall contribute to a member account established for him or her in the County
Employees Retirement System or in one (1) of the systems administered by the Kentucky
Retirement Systems, and employer contributions shall be paid on behalf of the member by the
participating employer to the system; and
2. Upon subsequent retirement, the member shall be eligible for a retirement allowance based upon
total service and creditable compensation, including any additional service or creditable
compensation earned after his or her initial retirement was voided;
(b) If a retired member is receiving a retirement allowance from the County Employees Retirement System
and is employed in a regular full-time position required to participate in the County Employees
Retirement System or in one (1) of the systems administered by the Kentucky Retirement Systems after
a one (1) month period following the member's initial retirement date, the member may continue to
receive his or her retirement allowance during the period of reemployment subject to the following
provisions:
1. If a member is reemployed by a participating employer within twelve (12) months of the
member's retirement date, the participating employer shall certify in writing on a form prescribed
by the Authority that no prearranged agreement existed between the employee and employer
prior to the employee's retirement for the employee to return to work with the participating
employer. If the participating employer fails to complete the certification or the Authority
determines a prearranged agreement exists, the member's retirement shall be voided and the
provisions of paragraph (a) of this subsection shall apply to the member and the employer. For
purposes of this paragraph:
a. If an elected official is reelected to a new term of office in the same position as the elected
official held prior to retirement and takes office within twelve (12) months of his or her
retirement date, he or she shall be deemed by the Authority as having a prearranged
agreement; and
b. Employment that is accepted by the retired member after twelve (12) months following
the member's retirement date shall not constitute a prearranged agreement under this
paragraph;
2. Notwithstanding any other provision of KRS Chapter 78 to the contrary, the member shall not
contribute to the system and shall not earn any additional benefits for any work performed during
the period of reemployment;
3. Except as provided by KRS 70.291 to 70.293, 95.022, and 164.952 and except for any retiree
employed as a school resource officer as defined by KRS 158.441, the employer shall pay
employer contributions as specified by KRS 78.5536 and 78.635 on all creditable compensation
earned by the employee during the period of reemployment. The additional contributions paid
shall be used to reduce the unfunded actuarial liability of the system; and
4. Except as provided by KRS 70.291 to 70.293, 95.022, and 164.952 and except for any retiree
employed as a school resource officer as defined by KRS 158.441, the employer shall be
required to reimburse the system for the cost of the health insurance premium paid by the system
to provide coverage for the retiree, not to exceed the cost of the single premium. Effective July 1, ACTS OF THE GENERAL ASSEMBLY 8
2015, local school boards shall not be required to pay the reimbursement required by this
subparagraph for retirees employed by the board for eighty (80) days or less during the fiscal
year. Effective August 1, 2024, the Department of Education shall pay for the health
reimbursements required by this subparagraph for a retiree who participated in a hazardous
position prior to July 1, 2003, in the County Employees Retirement System or in one (1) of the
systems administered by the Kentucky Retirement Systems, and who is reemployed by a local
school board;
(c) Notwithstanding paragraphs (a) and (b) of this subsection, a retired member who qualifies as a
volunteer for an employer participating in the County Employees Retirement System or the Kentucky
Retirement Systems and who is receiving reimbursement of actual expenses, a nominal fee for his or
her volunteer services, or both, shall not be considered an employee of the participating employer and
shall not be subject to paragraphs (a) and (b) of this subsection if:
1. Prior to the retired member's most recent retirement date, he or she did not receive creditable
compensation from the participating employer in which the retired member is performing
volunteer services;
2. Any reimbursement or nominal fee received prior to the retired member's most recent retirement
date has not been credited as creditable compensation to the member's account or utilized in the
calculation of the retired member's benefits;
3. The retired member has not purchased or received service credit under any of the provisions of
KRS 78.510 to 78.852 for service with the participating employer for which the retired member
is performing volunteer services; and
4. Other than the status of volunteer, the retired member does not become an employee, leased
employee, or independent contractor of the employer for which he or she is performing volunteer
services for a period of at least twelve (12) months following the retired member's most recent
retirement date.
If a retired member, who provided volunteer services with a participating employer under this
paragraph violates any provision of this paragraph, then he or she shall be deemed an employee of the
participating employer as of the date he or she began providing volunteer services and both the retired
member and the participating employer shall be subject to paragraphs (a) and (b) of this subsection for
the period of volunteer service;
(d) Notwithstanding any provision of this section, any mayor or member of a city legislative body shall not
be required to resign from his or her position as mayor or as a member of the city legislative body in
order to begin drawing benefits from the systems administered by the Kentucky Retirement Systems or
the County Employees Retirement System or subject to any provision of this section as it relates solely
to his or her service as a mayor or member of the city legislative body, if the mayor or member of a city
legislative body:
1. Has not participated in the County Employees Retirement System prior to retirement, but is
otherwise eligible to retire from the Kentucky Employees Retirement System or the State Police
Retirement System; or
2. Has been or is participating in the County Employees Retirement System and is at least sixty-two
(62) years of age. If a mayor or member of a city legislative body who is at least sixty-two (62)
years of age retires from the systems administered by Kentucky Retirement Systems or the
County Employees Retirement System but remains in office after his or her effective retirement
date, the mayor or member of the city legislative body shall not accrue any further service credit
or benefits in the systems administered by Kentucky Retirement Systems or the County
Employees Retirement System for any employment occurring on or after the effective retirement
date;
(e) Notwithstanding any provision of this section, any current or future part-time adjunct instructor for the
Kentucky Fire Commission who has not participated in the Kentucky Employees Retirement System
prior to retirement, but who is otherwise eligible to retire from the County Employees Retirement
System, shall not be: CHAPTER 214
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1. Required to resign from his or her position as a part-time adjunct instructor for the Kentucky Fire
Commission in order to begin drawing benefits from the County Employees Retirement System;
or
2. Subject to any provision of this section as it relates solely to his or her service as a part-time
adjunct instructor for the Kentucky Fire Commission;
(f) If a member is receiving a retirement allowance from the County Employees Retirement System and
enters into a contract or becomes a leased employee of an employer under contract with an employer
participating in the County Employees Retirement System or one (1) of the systems administered by the
Kentucky Retirement Systems:
1. At any time following retirement, if the Authority determines the employment arrangement does
qualify as an independent contractor or leased employee, the member may continue to receive his
or her retirement allowance during the period of the contract;
2. Within one (1) month following the member's initial retirement date, if the Authority determines
the employment arrangement does not qualify as an independent contractor or leased employee,
the member's retirement shall be voided in accordance with paragraph (a) of this subsection;
3. After one (1) month but within twelve (12) months following the member's initial retirement, if
the Authority determines the employment arrangement does not qualify as an independent
contractor or leased employee and that a prearranged agreement existed between the member and
the agency for the member to return to work with the agency, the member's retirement shall be
voided in accordance with paragraph (a) of this subsection; and
4. After a twelve (12) month period following the member's initial retirement, the member may
continue to receive his or her retirement allowance during the period of the contract and the
member shall not be required to notify the Authority or submit any documentation for purposes
of this section to the Authority. The initiation of a contract or the initial date of the leased
employment of a retired member by a participating agency that occurs after twelve (12) months
or more following the retired member's retirement date shall not constitute a prearranged
agreement under this subsection;
(g) The Authority shall issue a final determination regarding a certification of the absence of a prearranged
agreement or the retired member's qualification as an independent contractor or leased employee as
required under this section no later than thirty (30) days after the retired member and participating
employer provide all required forms and additional information required by the Authority; and
(h) Retired members of one (1) of the systems administered by Kentucky Retirement Systems who are
reemployed by an employer in the County Employees Retirement System on or after September 1,
2008, shall not be eligible to earn a second retirement account in the County Employees Retirement
System for his or her service to the employer.
(5) The Authority shall promulgate administrative regulations to implement the requirements of this section,
including incorporating by reference Authority-prescribed forms that a retired member and participating
agency shall provide the systems under subsections (1) and (4) of this section.
(6) "Reemployment" or "reinstatement" as used in this section shall not include a retired member who has been
ordered reinstated by the Personnel Board under authority of KRS 18A.095. A retired member who has been
ordered reinstated by the Personnel Board under authority of KRS 18A.095 or by court order or by order of the
Human Rights Commission and accepts employment by an agency participating in the Kentucky Employees
Retirement System or County Employees Retirement System shall void his or her retirement by reimbursing
the system in the full amount of his or her retirement allowance payments received.
Section 3. KRS 161.158 is amended to read as follows:
(1) (a) Each district board of education may form its employees into a group or groups or recognize existing
groups for the purpose of obtaining the advantages of group life, disability, medical, and dental
insurance, or any group insurance plans to aid its employees including the state employee health
insurance group as described in KRS 18A.225 to 18A.2287, as long as the employees continue to be
employed by the board of education. Medical and dental group insurance plans obtained under authority
of this section may include insurance benefits for the families of the insured group or groups of
employees. Any district board of education may pay all or part of the premium on the policies, and may ACTS OF THE GENERAL ASSEMBLY 10
deduct from the salaries of the employees that part of the premium which is to be paid by them and may
contract with the insurer to provide the above benefits. As permitted in KRS 160.280(4), board
members shall be eligible to participate in any group medical or dental insurance provided by the
district for employees.
(b) If a district board of education participates in the state employee health insurance program, as described
in KRS 18A.225 to 18A.2287, for its active employees and terminates participation and there is a state
appropriation approved by the General Assembly for the employer's contribution for active employees'
health insurance coverage, neither the board of education nor the employees shall receive the state-
funded contribution after termination from the state employee health insurance program.
(c) If a district board of education participates in the state employee health insurance program as described
in KRS 18A.225 to 18A.2287 for its active employees, all district employees who are required to be
offered health insurance coverage for purposes of, and in accordance with, the federal Patient Protection
and Affordable Care Act of 2010, Pub. L. No. 111-148, shall be eligible for the state-funded
contribution appropriated by the General Assembly for the employer's contribution for active
employees' health insurance coverage, including reimbursements for the cost of retiree health
insurance as required by subsection (17)(b)4. of Section 1 of this Act and subsection (4)(b)4. of
Section 2 of this Act.
(2) (a) Each district board of education shall adopt policies or regulations which will provide for:
1. a. Deductions from salaries of its employees or groups of employees whenever a request is
presented to the board by said employees or groups thereof.
b. The deductions shall be made from salaries earned in at least eight (8) different pay
periods.
c. The deductions may be made for, but are not limited to, membership dues, tax-sheltered
annuities, and group insurance premiums.
d. The district board is prohibited from deducting membership dues of an employee
organization, membership organization, or labor organization. This provision shall apply
to contracts entered into, opted in, extended or renewed on or after January 9, 2017.
e. With the exception of membership dues, the board shall not be required to make more
than one (1) remittance of amounts deducted during a pay period for a separate type of
deduction; and
2. Deductions from payments for the per diem and actual expenses provided under KRS 160.280(1)
to members of the district board of education whenever a request is presented by a board member
to the board. The deductions may be made for but not be limited to membership dues, health
insurance purchases, scholarship funds, and contributions to a political action committee.
(b) The deductions under paragraph (a)1. and 2. of this subsection shall be remitted to the appropriate
organization or association as specified by the employees within thirty (30) days following the
deduction, provided the district has received appropriate invoices or necessary documentation.
(c) Health insurance, life insurance, and tax-sheltered annuities shall be interpreted as separate types of
deductions. When amounts have been correctly deducted and remitted by the board, the board shall bear
no further responsibility or liability for subsequent transaction.
(3) Payments and deductions made by the board of education under the authority of this section are presumed to
be for services rendered and for the benefit of the common schools, and the payments and deductions shall not
affect the eligibility of any school system to participate in the public school funding program as established in
KRS Chapter 157.
Signed by Governor April 18, 2024.