A court order awarding additional back salary to or reinstating a member as a result of employment in a position covered by the Teachers’ Retirement System shall entitle the member to additional salary or service credit, or both, under the following circumstances:
(1) Members shall make contributions to the Teachers’ Retirement System at the rate set forth in KRS § 161.540 and members’ employers shall make contributions at the rate set forth in KRS § 161.550, with interest accruing on all contributions at the rate of eight percent (8%) per annum from the end of each fiscal year that back salary or the reinstatement was ordered. Contributions, plus interest, shall be made for each year that back salary or reinstatement was ordered. No service or salary credit shall be credited to a member’s account unless full contributions are paid to the Teachers’ Retirement System;

Terms Used In Kentucky Statutes 161.614

  • Action: includes all proceedings in any court of this state. See Kentucky Statutes 446.010
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
  • Month: means calendar month. See Kentucky Statutes 446.010
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
  • Year: means calendar year. See Kentucky Statutes 446.010

(2) The member may have court-ordered back salary credited to his or her account only to the extent that the member actually received payment for the back salary and only to the extent that the court-ordered back salary is within the salary scale that was available to the member in the covered position for the years that the back salary was awarded. Court-ordered back salary can be credited to the member’s account only as permitted under KRS § 161.220(9) and (10). The member may have court- ordered service credited to his or her account only after the retirement system has received the contributions and interest on the full compensation that would normally be earned in the position that is the subject of the litigation;
(3) The member’s employer ordered to pay back salary or to reinstate the member by a court of competent jurisdiction shall provide the retirement system with a breakdown of the back salary awarded to the member on a year-by-year basis;
(4) The calculations of the contributions and interest required to be paid for court- ordered back salary or reinstatement shall be provided by the retirement system to the member or the member’s employer at the member’s or employer’s request. Requests for these calculations shall be made with at least two (2) weeks of advance notice to the retirement system to provide these calculations. The retirement system will calculate accrued interest as of the last day of the month during which payment of the full contributions are made;
(5) For purposes of this section, a settlement agreement that provides back salary or reinstatement, and is adopted by order or judgment of a court of competent jurisdiction or is referenced in an order dismissing the action as settled shall have the same effect as a court order adjudicating the matter. Orders entered by a government board or agency as a result of litigation conducted on an administrative hearing level and legally binding arbitration and mediation awards shall be considered as court orders for the purposes of this section; and
(6) Under no circumstances shall a member be entitled to service credit as a result of court-ordered reinstatement that is in violation of the provisions of KRS § 161.500.
Effective: June 29, 2021
History: Amended 2021 Ky. Acts ch. 192, sec. 18, effective June 29, 2021. — Amended
2008 Ky. Acts ch. 78, sec. 16, effective July 1, 2008. — Amended 2004 Ky. Acts ch.
121, sec. 18, effective July 1, 2004. — Created 2002 Ky. Acts ch. 275, sec. 2,
effective July 1, 2002.