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Kentucky Revised Statutes
Title 8 - OFFICES AND OFFICERSChapter 61 - GENERAL PROVISIONS AS TO OFFICES AND OFFICERS - SOCIAL SECURITY FOR PUBLIC EMPLOYEES - EMPLOYEES RETIREMENT SYSTEM
KENTUCKY EMPLOYEES RETIREMENT SYSTEM
Section 61.595 - Annual retirement allowance - Limitations

Ky. Rev. Stat. § 61.595

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Current through 2024 Ky. Acts ch.225
Section 61.595 - Annual retirement allowance - Limitations
(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).
(2)
(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.

KRS 61.595

Effective: April 1, 2021

Amended 2021 Ky. Acts ch. 102, sec. 58, effective April 1, 2021. -- Amended 2018 Ky. Acts ch. 107, sec. 27, effective July 14, 2018. -- Amended 2013 Ky. Acts ch. 120, sec. 58, effective July 1, 2013. -- Amended 2008 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 18, effective June 27, 2008. -- Amended 2004 Ky. Acts ch. 33, sec. 3; and ch. 36, sec. 14, effective July 13, 2004. -- Amended 2002 Ky. Acts ch. 52, sec. 8, effective July 15, 2002. -- Amended 1998 Ky. Acts ch. 123, sec. 1, effective July 15, 1998; and ch. 184, sec. 1, effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 502, sec. 3, effective April 13, 1994. Amended 1992 Ky. Acts ch. 240, sec. 29, effective July 14, 1992. -- Amended 1990 Ky. Acts ch. 221, sec. 1, effective July 13, 1990; ch. 342, sec. 1, effective July 13, 1990; and ch. 517, sec. 1, effective July 1, 1990. -- Amended 1988 Ky. Acts ch. 349, sec. 43, effective July 15, 1988; ch. 351, sec. 1, effective July 15, 1988; and ch. 364, sec. 2, effective July 15, 1988. -- Amended 1986 Ky. Acts ch. 90, sec. 15, effective July 15, 1986; and ch. 293, sec. 1, effective July 15, 1986. -- Amended 1984 Ky. Acts ch. 228, sec. 2, effective July 13, 1984. -- Amended 1978 Ky. Acts ch. 121, sec. 1, effective June 17, 1978. -- Amended 1976 Ky. Acts ch. 224, sec. 1; and ch. 321, sec. 22. -- Amended 1974 Ky. Acts ch. 24, sec. 2. -- Amended 1972 Ky. Acts ch. 116, sec. 36. -- Amended 1968 Ky. Acts ch. 26, sec. 1. -- Amended 1966 Ky. Acts ch. 35, sec. 8. -- Amended 1964 Ky. Acts ch. 86, sec. 4. -- Amended 1962 Ky. Acts ch. 58, sec. 10. -- Amended 1960 Ky. Acts ch. 165, Part II, sec. 7. -- Created 1956 Ky. Acts ch. 110, sec. 18.

Amended by 2021 Ky. Acts ch. 102,§ 58, eff. 4/1/2021.
Amended by 2018 Ky. Acts ch. 107,§ 27, eff. 7/14/2018.
Amended by 2013 Ky. Acts ch. 120,§ 58, eff. 7/1/2013.
Effective:6/27/2008
Amended 2008, (1st Extra. Sess.) Ky. Acts ch. 1, sec. 18, effective6/27/2008. -- Amended 2004, Ky. Acts ch. 33, sec. 3; and ch. 36, sec. 14, effective 7/13/2004. -- Amended 2002, Ky. Acts ch. 52, sec. 8, effective 7/15/2002. -- Amended 1998, Ky. Acts ch. 123, sec. 1, effective 7/15/1998; and ch. 184, sec. 1, effective 7/15/1998. -- Amended 1994 Ky. Acts ch. 502, sec. 3, effective 4/13/1994. - Amended 1992 Ky. Acts ch. 240, sec. 29, effective 7/14/1992. -- Amended 1990 Ky. Acts ch. 221, sec. 1, effective 7/13/1990; ch. 342, sec. 1, effective 7/13/1990; and ch. 517, sec. 1, effective 7/1/1990. -- Amended 1988 Ky. Acts ch. 349, sec. 43, effective 7/15/1988; ch. 351, sec. 1, effective 7/15/1988; and ch. 364, sec. 2, effective 7/15/1988. -- Amended 1986 Ky. Acts ch. 90, sec. 15, effective 7/15/1986; and ch. 293, sec. 1, effective 7/15/1986. -- Amended 1984 Ky. Acts ch. 228, sec. 2, effective 7/13/1984. -- Amended 1978 Ky. Acts ch. 121, sec. 1, effective 6/17/1978. -- Amended 1976 Ky. Acts ch. 224, sec. 1; and ch. 321, sec. 22. -- Amended 1974 Ky. Acts ch. 24, sec. 2. -- Amended 1972 Ky. Acts ch. 116, sec. 36. -- Amended 1968 Ky. Acts ch. 26, sec. 1. -- Amended 1966 Ky. Acts ch. 35, sec. 8. -- Amended 1964 Ky. Acts ch. 86, sec. 4. -- Amended 1962 Ky. Acts ch. 58, sec. 10. -- Amended 1960 Ky. Acts ch. 165, Part II, sec. 7. --Created 1956 Ky. Acts ch. 110, sec. 18.

Legislative Research Commission Note (12/13/2018). On December 13, 2018, the Kentucky Supreme Court ruled that the passage of 2018 SB 151 (2018 Ky. Acts ch. 107), did not comply with the three-readings rule of Kentucky Constitution Section 46 and that the legislation is, therefore, constitutionally invalid and declared void. That ruling applies to changes made to this statute in that Act.