61.595 Annual retirement allowance -- Limitations.
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/ky/chapter-61/61-595A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)Effective July 1, 1990, upon retirement at normal retirement date or
subsequent thereto, a Kentucky Employees Retirement System member may
receive an annual retirement allowance, payable monthly during his or her
lifetime, which shall consist of an amount equal to one and ninety-seven
hundredths percent (1.97%) of final compensation multiplied by the number of
years of service credit, except that:
(a)Effective February 1, 1999, a member of the Kentucky Employees
Retirement System who was participating in one
(1)of the
state-administered retirement systems as of January 1, 1998, and
continues to participate through January 1, 1999, shall receive an annual
retirement allowance, payable monthly during his or her lifetime, which
shall consist of an amount equal to two percent (2%) of final
compensation multiplied by the number of years of service credit. Any
Kentucky Employees Retirement System member whose effective date of
retirement is between February 1, 1999, and January 31, 2009, and who
has at least twenty
(20)years of service credit in one
(1)of the
state-administered retirement systems and who was participating in one
(1)of the state-administered retirement systems as of January 1, 1998,
and continues to participate through January 1, 1999, shall receive an
annual retirement allowance, payable monthly during his or her lifetime,
which shall consist of an amount equal to two and two-tenths percent
(2.2%) of final compensation multiplied by the number of years of service
credit. Notwithstanding the provisions of KRS 61.565, the funding for this
paragraph shall be provided from existing funds of the retirement
allowance account;
(b)The annual normal retirement allowance for members of the General
Assembly, who serve during the 1974 or 1976 General Assembly, and will
have eight
(8)years or more of total legislative service as of January 6,
1978, shall not be less than two hundred forty dollars ($240) multiplied by
the number of years of service as a member of the General Assembly;
(c)For a member of the Kentucky Employees Retirement System who
begins participating on or after September 1, 2008, the annual retirement
allowance upon retirement shall be equal to:
1. a. One and one-tenth percent (1.1%) of final compensation for
each year of service if the member has earned ten
(10)or less
years of service at retirement;
b. One and three-tenths percent (1.3%) of final compensation 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. One and one-half percent (1.5%) of final compensation 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. One and three-quarters percent (1.75%) of final compensation
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. Two percent (2.0%) of final compensation for each year of service
earned in excess of thirty
(30)years of service at retirement;
(d)The annual normal retirement allowance for members of the General
Assembly who will have fewer than eight
(8)years of service as of
December 31, 1975, shall be as prescribed in Chapter 116, section 36(1),
Acts of the 1972 General Assembly for legislative service prior to January
1, 1974;
(e)Former members of the General Assembly who have eight
(8)or more
years of legislative service prior to the 1976 Regular Session are eligible
for an increased retirement allowance of two hundred forty dollars ($240)
times the years of legislative service, if the member pays to the Kentucky
Employees Retirement System thirty-five percent (35%) of the actuarial
cost of the higher benefit, as determined by the system, except that a
former member with sixteen
(16)or more years of legislative service, or
his or her beneficiary, who is receiving a retirement allowance, also is
eligible under this section and may apply for a recomputation of his or her
retirement allowance. The employer's share of sixty-five percent (65%) of
the computed actuarial cost shall be paid from the State Treasury to the
Kentucky Employees Retirement System upon presentation of a properly
documented claim to the Finance and Administration Cabinet. If any
member with sixteen
(16)or more years of legislative service previously
applied for and is receiving a retirement allowance, he or she may reapply
and his or her retirement allowance shall be recomputed in accordance
with this paragraph, and he or she shall thereafter be paid in accordance
with the option selected by him or her at the time of the reapplication; and
(f)The annual normal retirement allowance for a member with ten
(10)or
more years of service, in the Kentucky Employees Retirement System, at
least one
(1)of which is current service, shall not be less than five
hundred twelve dollars ($512).
(a)Upon service retirement prior to normal retirement date, a member may
receive an annual retirement allowance payable monthly during his or her
lifetime which shall be determined in the same manner as for retirement
at his or her normal retirement date with years of service and final
compensation being determined as of the date of his or her actual
retirement, but the amount of the retirement allowance so determined
shall be reduced at an amount determined by the board's actuary to
reflect the earlier commencement of benefits.
(b)A member of the Kentucky Employees Retirement System who begins
participating before September 1, 2008, who has twenty-seven
(27)or
more years of service credit, at least fifteen
(15)of which are current
service, may retire with no reduction in the retirement allowance. A
member who begins participating before September 1, 2008, who has
earned vested service credit in a retirement system, other than the
Teachers' Retirement System, sponsored by a Kentucky institution of
higher education, the Council on Postsecondary Education, or the Higher
Education Assistance Authority, may count the vested service toward
attaining the necessary years of service credit as provided in KRS
61.559(2)(c) and
(d)to qualify for a retirement allowance. The credit from
a Kentucky institution of higher education, the Council on Postsecondary
Education, or the Higher Education Assistance Authority shall not be used
toward the minimum fifteen
(15)years of current service required by KRS
61.559(2)(c) and
(d)or to calculate his or her retirement allowance
pursuant to this section. The provisions of this paragraph shall not be
construed to limit the use of Teachers' Retirement System credit pursuant
to KRS 61.680(2)(a).
(c)A member of the Kentucky Employees Retirement System who begins
participating on or after September 1, 2008, may retire with no reduction
in benefits if the member is fifty-seven
(57)years of age or older and has
an age and years of service total of at least eighty-seven
(87)years. The
years of service used to determine eligibility for an unreduced retirement
allowance under this paragraph shall only include years of service
credited under KRS 16.543(1), 61.543(1), or 78.615(1) or another
state-administered retirement system.
(3)Subsections
(1)and
(2)of this section shall not apply to members who begin
participating in the system on or after January 1, 2014. Members who begin
participating in the system on or after January 1, 2014, shall receive the
retirement benefits prescribed by KRS 61.597.