Request By:
Mr. Mim C. Clark
General Manager
Kentucky Retirement Systems
226 West Second Street
Frankfort, Kentucky 40601
Opinion
Opinion By: Steven L. Beshear, Attorney General; By: Patrick B. Kimberlin, III, Assistant Attorney General
This is in response to your recent letter wherein you ask an opinion of this office based upon the following factual situation:
A member of the County Employes Retirement System (CERS) terminated his employment with the Kenton County Clerk's Office on December 15, 1975 and began receiving retirement payments from the CERS effective in January, 1976. Meanwhile, on December 1, 1975, this individual was employed by the City of Covington which, by the way, did not participate in the CERS at that time. However, effective April 1, 1977 the City of Covington began participating in the CERS, at which time this individual's retirement payments were suspended in accordance with KRS 61.637. Pursuant to KRS 61.525(5), this individual subsequently purchased delayed service in the CERS for that period of time between December 1, 1975 through March 31, 1977 during which he had been employed by the City of Covington but before it had become a participating agency in the CERS. Finally, this individual terminated employment with the City of Covington on January 5, 1980 and has re-retired from the CERS. You now ask two questions with regard to the foregoing factual circumstances.
1. Was the member eligible to purchase service credit in the CERS after his retirement?
It is our opinion that the member described in the factual situation you have presented was eligible to purchase service credit in the CERS after his retirement from the Kenton County Clerk's Office. As you are aware, pursuant to KRS 61.525(5) this individual had the right, once the City of Covington began participating in the CERS in April, 1977, to purchase service credit in that retirement system for the period of time he had worked for the City of Covington prior to its participation date.
2. If the member was eligible to make the purchase, is the purchase otherwise illegal because the member purchased service credit for a period of time during which he was receiving monthly retirement benefits from the CERS?
It is our opinion that the member could purchase service credit in the CERS for that period of time he was employed by the City of Covington prior to the effective date of its participation in the retirement system even though he had already received retirement payments from the CERS. First, we find no statutory authority prohibiting the purchase in question upon the ground you suggest. Secondly, it must be kept in mind that, as a general principle, pension laws should be given a liberal construction in favor of the recipient. Mayberry v. Coyne, Ky., 312 S.W.2d 455 (1958). 1
Footnotes
Footnotes
1 The scope of this Opinion is necessarily limited to its rather unique facts.