Retirement

Your retirement plan as an employee of Kentucky state government is designed to give you long-term security in the years after your state service is completed. It also contains valuable benefits for your named beneficiary.

Most state employees belong to the Kentucky Employees Retirement System. Some employees of the Department of Education and the former Workforce Development Cabinet now part of the Education Cabinet are enrolled in the Kentucky Teachers' Retirement System. After you have identified which one pertains to you, you may request a free booklet detailing your retirement program for your retirement system. If you serve under both systems during your career, you may combine credits when you retire.

If you are planning on Retiring:

1. You need to contact the Kentucky Retirement Systems (KRS) to determine your options for retirement. Please refer to http://www.kyret.com/contactKRS.htm for contact information for KRS. Once you make a decision regarding your retirement, please contact your Human Resource Administrator. Refer to our Agency Personnel and Payroll Staff Listing (PDF - 108 KB) for a complete listing of agency Human Resource Administrators.

2. The Kentucky Public Employees Deferred Compensation Authority: To defer your payment(s) for accumulated leave (compensatory and annual) time to Kentucky Deferred Compensation (KDC) be sure to contact them 60 days in advance of your planned retirement date.
   • You must complete and sign a Participation Agreement far enough in advance for Kentucky Deferred Compensation to notify your payroll department prior to the issuance of the check(s) for your accumulated leave. Merely notifying KDC of your intention will not allow you to defer any payment for accumulated leave.
   • An extremely heavy workload is anticipated throughout 2008 and by making an appointment with the Marketing Staff and providing KDC with 60 days advance notice of your intention to retire you help ensure you receive the service you need.
   • To transfer dollars from your KDC account to KRS, KTRS, Legislative or Judicial Form Retirement in order to purchase service credit, you will need to submit the Direct Transfer/Rollover form to KDC.
   • Note: Any purchase of service credit begins with your retirement system. You will need to make an appointment with them and obtain the necessary forms and cost calculation information before Kentucky Deferred Compensation can assist you.

   For further information on deferring accumulated leave or using your Kentucky Deferred Compensation account to purchase service credit, please call their Customer Service Center, toll free, at 800.542.2667, or in Frankfort at 573.7925.

3. Often there’s much that goes into planning for retirement from a fiscal standpoint. Very few employees spend time planning for the psychological/emotional issues which occurs with retirement. Planning for a healthy transition is critical with all major life changes, even good change can be stressful. The Kentucky Employee Assistance Program (KEAP) offers an educational tool that highlights important issues to consider so you can make the healthiest transition into retirement, The Kentucky Employees Health Plan (KEHP): As you retire (under 65 and not eligible for Medicare) keep in mind the following information pertaining to your health insurance benefits:
   • Your health insurance benefits will transition without a break in coverage. To ensure a smooth transition however, you must complete a Health Insurance Application and submit it directly to your retirement system.
   • If you are enrolled in the Commonwealth Select plan, you will be required to make a new insurance election as the Commonwealth Select plan is not available to retirees.
   • If you have an HRA (with the Commonwealth Select plan or a waiver) and/ or an FSA and have not incurred enough expenses prior to your retirement date to deplete your funds, the remaining balance in your HRA and/or FSA will be forfeited upon retirement.
   • If you are enrolled in the Commonwealth Select plan and you have the cross-reference payment option, your spouse will retain any HRA funds if they are actively at work.

For more information pertaining to COS access the Personnel Cabinet’s website at http://www.personnel.ky.gov/employment/