95.862 Permanent occupational disability -- Annuity rate -- Reduction of benefits --

521 words·~2 min read·/ky/95-862

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Cost-of-living increases.

(1)In the event a total and permanent occupational disability occurs, the member shall

receive an annuity equal to seventy percent (70%) of his last rate of salary. If the

calculated monthly benefit is less than five hundred dollars ($500) per month, the

board may increase the monthly benefit to a minimum of five hundred dollars

($500) monthly if the increase can be supported on an actuarially sound basis by the

fund. This benefit shall begin at such time as his salary may cease, and shall be paid

during his entire lifetime. Any member who retired prior to June 21, 1974, shall

receive an increase of ten dollars ($10) per month for each year or part thereof of

retirement prior to June 21, 1974, with a maximum increase of one hundred and

seventy dollars ($170) per month. Upon his death, his eligible widow and minor

children, if any, shall receive the benefits as provided under KRS 95.860.

(2)If the member retired for total and permanent occupational disability would receive

from a combination of

(a)pension disability payments pursuant to subsection

(1)of

this section, and

(b)workers' compensation payments, excluding spouse or

dependent children's allowances or payments for medical expenses or legal fees

related to the workers' compensation claim, an amount greater than one hundred

percent (100%) of his last rate of salary, then the pension system benefits shall be

reduced to the point that the combined payments equal one hundred percent (100%)

of the last rate of salary. The benefit shall not be reduced, however, below an

amount equal to two and one-half percent (2-1/2%) of average salary for each year

of the member's service. Any reduction in the payment shall be based upon workers'

compensation benefits applicable at the time the payment is granted, and not upon

subsequent increases in either benefit. If workers' compensation benefits are

reduced at a subsequent time, the retiree shall inform the board, and the board shall

increase the benefit by the amount of the reductions, but not by more than an

amount which would increase the benefit to seventy percent (70%) of the last rate of

salary, excluding cost-of-living increases. The board of trustees may pay estimated

benefits to a retiree, upon qualification for the benefits, based upon an estimate of

workers' compensation benefits until such amounts are actually determined, at

which time a final calculation of the actual benefits shall be determined and the

account corrected retroactive to the effective date of the benefit. If workers'

compensation benefits are paid in lump sums, the board shall reduce the disability

retirement annuity on a monthly rather than a lump-sum basis. The amount of the

monthly reduction shall be based upon the life expectancy of the retired member.

The board may request the assistance of the general manager of Kentucky

Retirement Systems to calculate the reduction in the retirement benefit when lump

sum payments are involved, and the general manager shall provide such assistance

upon request.

(3)Any member retired pursuant to this section shall receive the same cost-of-living

increases granted to other retirees pursuant to the terms of KRS 95.859(3).