161.620 Retirement allowances for university and nonuniversity retirees -- Amount
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/ky/161-620A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
-- Increases -- Payments for adult dependents.
(1)The retirement allowance, in the form of a life annuity with refundable balance, of a
member retiring for service shall be calculated as follows:
(a)For retirements effective July 1, 1998, and thereafter, except as otherwise
provided by this section, the annual allowance for each year of service shall be
two percent (2%) of the final average salary for service performed prior to
July 1, 1983, and two and one-half percent (2.5%) of the final average salary
for service performed after July 1, 1983, for all nonuniversity members.
Except as otherwise provided by this section, the annual retirement allowance
for each year of service performed by members of the Teachers' Retirement
System who are university members shall be two percent (2%) of the final
average salary. Actuarial discounts due to age or service credit at retirement
may be applied as provided in this section;
(b)For individuals who become nonuniversity members of the Teachers'
Retirement System on or after July 1, 2002, and before July 1, 2008, who
upon retirement have earned less than ten
(10)full years of service credit, the
retirement allowance shall be two percent (2%) of the member's final average
salary for each year of service. For individuals who become nonuniversity
members of the Teachers' Retirement System on or after July 1, 2002, and
before July 1, 2008, and who upon retirement have earned at least ten
(10)full
years of service credit, the annual allowance for each year of service shall be
two and one-half percent (2.5%) of the member's final average salary;
(c)The board of trustees may approve for members who initially retire on or after
July 1, 2004, and who become nonuniversity members before July 1, 2008, a
retirement allowance of three percent (3%) of the member's final average
salary for each year or partial year of service credit earned in excess of thirty
(30)years. This three percent (3%) factor shall be in lieu of the two and one-
half percent (2.5%) factor provided for in paragraph
(b)of this subsection for
every year or fraction of a year of service in excess of thirty
(30)years. Upon
approval of this three percent (3%) retirement factor, the board of trustees may
establish conditions of eligibility regarding the type of service credit that will
qualify for meeting the requirements of this subsection. This subsection is
optional with the board of trustees and shall not be subject to KRS 161.714;
(d)For individuals who become nonuniversity members of the Teachers'
Retirement System on or after July 1, 2008, but prior to January 1, 2022, the
retirement allowance shall be:
1. a. One and seven-tenths percent (1.7%) of the member's final average
salary for each year of service if the member has earned ten
(10)or
less years of service at retirement;
b. Two percent (2%) of the member's final average salary for each
year of service if the member has earned greater than ten
(10)but
no more than twenty
(20)years of service at retirement;
c. Two and three-tenths percent (2.3%) of the member's final average
salary for each year of service if the member has earned greater
than twenty
(20)but no more than twenty-six
(26)years of service
at retirement; or
d. Two and one-half percent (2.5%) of the member's final average
salary for each year of service if the member has earned greater
than twenty-six
(26)but no more than thirty
(30)years of service at
retirement; and
2. Three percent (3%) of the member's final average salary for each year or
partial year of service earned in excess of thirty
(30)years of service at
retirement subject to the same terms and conditions as set forth in
paragraph
(c)of this subsection;
(e)For individuals who become university members of the Teachers' Retirement
System on or after July 1, 2008, but prior to January 1, 2022, the retirement
allowance shall be:
1. One and one-half percent (1.5%) of the member's final average salary for
each year of service if the member has earned ten
(10)or less years of
service at retirement;
2. One and seven-tenths percent (1.7%) of the member's final average
salary for each year of service if the member has earned greater than ten
(10)but no more than twenty
(20)years of service at retirement;
3. One and eighty-five hundredths percent (1.85%) of the member's final
average salary for each year of service if the member has earned greater
than twenty
(20)but less than twenty-seven
(27)years of service at
retirement; or
4. Two percent (2%) of the member's final average salary for each year of
service if the member has earned twenty-seven
(27)or more years of
service at retirement;
(f)For individuals who become nonuniversity members of the Teachers'
Retirement System on or after January 1, 2022, the retirement allowance shall,
except as adjusted by the board pursuant to KRS 161.633, be the following
percentage of the member's final average salary for each year of service:
1. One and seven-tenths percent (1.7%), which shall be increased
incrementally each month the member's age at retirement is greater than
sixty
(60)so that the incremental increase is four one-hundredths of one
percent (0.04%) for each complete additional year of age at retirement in
excess of sixty (60), not to exceed a value of one and nine-tenths percent
(1.9%) at age sixty-five
(65)or greater; plus
2. a. One-quarter of one percent (0.25%), if the member has earned at
least twenty
(20)but less than thirty
(30)years of service at
retirement; or
b. One-half of one percent (0.50%), if the member has earned thirty
(30)or more years of service at retirement;
(g)For individuals who become university members of the Teachers' Retirement
System on or after January 1, 2022, the retirement allowance shall, except as
adjusted by the board pursuant to KRS 161.634, be the following percentage
of the member's final average salary for each year of service:
1. Seven-tenths of one percent (0.7%), which shall be increased
incrementally each month the member's age at retirement is greater than
sixty
(60)so that the incremental increase is four one-hundredths of one
percent (0.04%) for each complete additional year of age in excess of
sixty (60), not to exceed a value of nine-tenths of one percent (0.9%) at
age sixty-five
(65)or greater; plus
2. a. One-quarter of one percent (0.25%), if the member has earned at
least twenty
(20)but less than thirty
(30)years of service at
retirement; or
b. One-half of one percent (0.50%), if the member has earned thirty
(30)or more years of service at retirement; and
(h)The retirement allowance of a member at retirement, as measured on a life
annuity, shall not exceed the member's last yearly salary or the member's final
average salary, whichever is the greater amount. For purposes of this section,
"yearly salary" means the compensation earned by a member during the most
recent period of contributing service, either consecutive or nonconsecutive,
preceding the member's effective retirement date and shall be subject to the
provisions of KRS 161.220(9) and (10). This paragraph shall not apply to the
supplemental benefit component.
(2)Effective July 1, 2002, and annually on July 1 thereafter, the retirement allowance
of each retired member and of each beneficiary of a retirement option shall be
increased in the amount of one and one-half percent (1.5%), provided the retired
member had been retired for at least the full twelve
(12)months immediately
preceding the date that the increase is effective. In the event that the retired member
had been retired for less than the full twelve
(12)months immediately preceding the
date that the increase is effective, then the increase shall be reduced on a pro rata
basis by each month that the retired member had not been retired for the full twelve
(12)months immediately preceding the effective date of the increase. This
subsection shall not apply to benefits from the supplemental benefit component, and
the board may adjust this value for individuals who become members on or after
January 1, 2022, as provided by KRS 161.633 or 161.634, as applicable.
(3)Any member qualifying for retirement under a life annuity with refundable balance
shall be entitled to receive an annual allowance amounting to not less than four
hundred dollars ($400) effective July 1, 2002, and not less than four hundred forty
dollars ($440) effective July 1, 2003, multiplied by the service credit years of the
member. These minimums shall apply to the retired members receiving annuity
payments and to those members retiring on or subsequent to the effective dates
listed in this subsection, except the following:
(a)Individuals who become members of the Teachers' Retirement System on or
after July 1, 2008; or
(b)Members whose retirement allowance payment is reduced below the
minimum allowance as a result of its division in a qualified domestic relations
order or any other provision permitted under KRS 161.700.
(4)The minimum retirement allowance provided in this section shall apply in the case
of members retired or retiring under an option other than a life annuity with
refundable balance in the same proportion to the benefits of the member and his or
her beneficiary or beneficiaries as provided in the duly-adopted option tables at the
time of the member's retirement.
(5)Effective July 1, 2008, the monthly allowance of each retired member and each
recipient of a retirement option of the retired member may be increased in an
amount not to exceed three and one-half percent (3.5%) of the monthly allowance in
effect the previous month, provided the retired member had been retired for at least
the full twelve
(12)months immediately preceding the date that the increase is
effective. In the event that the retired member had been retired for less than the full
twelve
(12)months immediately preceding the date that the increase is effective,
then the increase shall be reduced on a pro rata basis by each month that the retired
member had not been retired for the full twelve
(12)months immediately preceding
the effective date of the increase. The level of increase provided for in this
subsection shall be determined by the funding provided in the 2008-2010 biennium
budget appropriation.
(6)Effective July 1, 2009, the monthly allowance of each retired member and each
recipient of a retirement option of the retired member may be increased in an
amount not to exceed seven-tenths of one percent (0.7%) of the monthly allowance
in effect the previous month, provided the retired member had been retired for at
least the full twelve
(12)months immediately preceding the date that the increase is
effective. In the event that the retired member had been retired for less than the full
twelve
(12)months immediately preceding the date that the increase is effective,
then the increase shall be reduced on a pro rata basis by each month that the retired
member had not been retired for the full twelve
(12)months immediately preceding
the effective date of the increase. The level of increase provided for in this
subsection shall be determined by the funding provided in the 2008-2010 biennium
budget appropriation.
(7)Effective July 1, 1990, monthly payments of two hundred dollars ($200) shall be
payable for the benefit of an adult child of a member retired for service when the
child's mental or physical condition is sufficient to cause dependency on the
member at the time of retirement. Eligibility for this payment shall continue for the
life of the child or until the time the mental or physical condition creating the
dependency no longer exists or the child marries. Benefits under this subsection
shall apply to legally adopted survivors provided the proceedings for the adoption
were initiated at least one
(1)year prior to the death of the member. The board of
trustees shall be the sole judge of eligibility or dependency and may require formal
application or information relating thereto.
(8)Members of the Teachers' Retirement System shall be subject to the annuity income
limitations imposed by Section 415 of the Internal Revenue Service Code.
(9)Compensation in excess of the limitations imposed by Section 401(a)(17) of the
Internal Revenue Code shall not be used in determining a member's retirement
annuity. The limitation on compensation for eligible members shall not be less than
the amount which was allowed to be taken into account by the retirement system in
effect on July 1, 1993. For this purpose, an eligible member is an individual who
was a member of the retirement system before the first plan year beginning after
December 31, 1995.