AN ACT relating to service credit for the Teachers' Retirement System and declaring an emergency.

UNOFFICIAL COPY 26 RS BR 339
Page 1 of 2
XXXX 1/8/2026 4:28 PM Jacketed
AN ACT relating to service credit for the Teachers' Retirement System and 1
declaring an emergency. 2
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 3
Section 1. KRS 161.500 is amended to read as follows: 4
(1) (a) At the close of each fiscal year, the retirement system shall add service credit 5
to the account of each member who made contributions to his or her account 6
during the year. 7
(b) Nonuniversity members are entitled to a full year of service credit if they have 8
no more t han five (5) unpaid days in a school or fiscal year under a contract 9
requiring a work schedule of one hundred eighty-five (185) days or greater. 10
(c) University members are entitled to a full year of service credit if they have no 11
more than five (5) unpaid days in a school or fiscal year under a contract 12
requiring a work schedule of one hundred eighty (180) days or greater. 13
(d) 1. A member who has more than the allowed number of unpaid days as 14
specified in paragraph (b) or (c) of this subsection shall be allowed to 15
recover up to a maximum of ten (10) unpaid days if the days were 16
missed for the observance of religious holidays and th e member 17
submits a personal statement verifying the unpaid days were for the 18
observance of religious holidays. 19
2. The number of days recovered shall be included in the number of days 20
worked for service credit purposes. 21
3. The employer of a member recoverin g unpaid days under this 22
paragraph shall assign duties and responsibilities for recovered days 23
comparable to the duties and responsibilities of the member on a 24
typical contract day. 25
(e) In the event a member is paid for less than the required number of day s for a 26
full year of service credit, the member may purchase credit according to 27
UNOFFICIAL COPY 26 RS BR 339
Page 2 of 2
XXXX 1/8/2026 4:28 PM Jacketed
administrative regulations established by the board of trustees. 1
(f) In no case shall more than one (1) year of service be credited for all service 2
performed in one (1) fiscal year. 3
(g) Members who complete their employment contract prior to the close of a 4
fiscal year and elect to retire prior to the close of a fiscal year shall have their 5
service credit reduced by eight percent (8%) for each calendar month that the 6
retirement becomes effective prior to July 1. 7
(2) Members who are employed and paid for less than the number of days required in 8
their normal employment year shall be entitled to pro rata service credit for the 9
fractional service. Such credit shall be based upon the number of days employed 10
and the number of days in the member's annual employment agreement or normal 11
employment year. 12
(3) Service credit may not exceed the ratio between the school or fiscal year and the 13
number of months or fraction of a month the member is employed during that year. 14
(4) No service credit shall be granted in the Teachers' Retirement System for service 15
that has been or will be used in qualifying for annuity benefit payments from 16
another retirement system financed wholly or in part by public funds. 17
Section 2. Whereas the General Assembly wants to acknowledge the diverse 18
religions of the teachers employed in the Commonwealth and allow teachers to observe 19
the holidays of their religions, an emergency is declar ed to exist, and this Act takes effect 20
upon its passage and approval by the Governor or upon its otherwise becoming a law. 21