Reemployment After Retirement

Most members pursue personal interests after retirement — the reward for their service to the public.  Some members use retirement to begin a second career, and others return to work for financial reasons.  KRS retirees should be aware of the requirements, and potential consequences, of accepting employment with any agency participating in any of the systems administered by KRS.

The following is an overview of the requirements of Kentucky Revised Statute 61.637, the employment after retirement statute.  Please refer to our Reemployment after Retirement Handbook for complete information.

Prior to Retirement

Kentucky law prohibits a member from having a prearranged agreement,  prior to his or her effective retirement date, to return to employment in any position with any participating agency. The member must certify on the Form 6000, "Notification of Retirement" that no prearranged agreement exists prior to retirement.

Twelve Month Rule

Within twelve (12) months of retirement: If a retired member seeks employment or begins serving as a volunteer with a participating agency within twelve (12) months of his or her effective retirement date, both the member and participating agency must notify KRS by submitting the necessary forms.

After twelve (12) months of retirement: Neither a retired member nor a participating agency are required to notify, seek a final determination, or submit forms to KRS related to any employment, independent contractor, leased employee or volunteering, accepted twelve (12) months after the member's effective retirement date.

Reemployment with a Participating Agency

Required Forms: If within twelve (12) months of a member's effective retirement date, he or she seeks employment with a participating agency, the member is required to report this arrangement to KRS by submitting a Form 6754, "Member Reemployment Certification." The participating agency must also certify there is no prearranged agreement by submitting a Form 6751, "Employer Certification Regarding Reemployment."

Break in Service: In almost all reemployment situations, the retired member is also required to observe a three (3) calendar month break in service from his or her effective retirement date before returning to work for a participating agency. The only exception is when a member retires from a hazardous position and returns to employment with a participating agency in a regular, full-time hazardous position. In this specific situation, the member must only observe a one (1) calendar month break before returning to employment in that regular, full-time hazardous position.

If the required forms are not submitted, or if the member fails to observe the proper break in service, the member's retirement benefits will be voided and the member will be required to repay all retirement allowances, dependent child payments, and health plan premiums paid by KRS.

No Second Retirement Account

Retired members whose initial reemployment with a participating agency occurs on or after September 1, 2008, will not submit contributions, earn service credit nor be eligible for a second retirement account.

Health Insurance

If a retired member with an initial participation date prior to September 1, 2008, has elected receipt of health insurance coverage through KRS but later reemploys with a participating agency in a regular full-time position, the agency is required to reimburse KRS for the single coverage health insurance contribution provided to the retiree. If a retired member with an initial participation date on or after September 1, 2008, reemploys with a participating agency in a regular, full-time position, the retired member will not be eligible for health insurance coverage from KRS during the period of reemployment.

Medicare Secondary Payer