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6.521 Increase of retirement benefits.

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6.521 Increase of retirement benefits. (1) As of July 1 of each year, the board of trustees of the Kentucky Judicial Form Retirement System shall recompute the monthly benefits of persons then receiving <br>benefits under the Legislators' Retirement Plan, by using the following formula: <br>three and one-half percent (3.5%) times fifty-five percent (55%) of the final <br>compensation of the office in which the credit was earned for a person retiring as of <br>the recomputation date, times the number of years of service credit (not to exceed <br>twenty-eight (28) years). In making the recomputation, the same reduction factor, in <br>case of an actuarially reduced benefit or a surviving spouse's benefit, shall be used <br>as was used in determining the benefit then being received. If the benefit as <br>recomputed in accordance with this section is higher than the benefit then being <br>received, the recomputed benefit shall thereafter be paid monthly, commencing as <br>of the date specified for the recomputation, subject to future adjustment at ensuing <br>recomputations in accordance with this section. (2) Effective August 1, 1998, to July 1, 2008, a recipient of a monthly pension benefit from the Legislators' Retirement Plan shall have his or her benefit increased on July <br>1 of each year by the percentage increase in the annual average of the consumer <br>price index for all urban consumers for the most recent calendar year as published <br>by the Federal Bureau of Labor Statistics, not to exceed five percent (5%). In <br>determining the state's appropriation to the Legislators' Retirement Fund, only the <br>costs of increases granted as of the most recent valuation date shall be recognized. <br>The benefits of this subsection as provided on August 1, 1998, to July 1, 2008, shall <br>not be considered as benefits protected by the inviolable contract provisions of KRS <br>6.505. The General Assembly reserves the right to suspend or reduce the benefits <br>conferred in this subsection if in its judgment the welfare of the Commonwealth so <br>demands. (3) Effective July 1, 2009, and on July 1 of each year thereafter, a recipient of a monthly pension benefit from the Legislators' Retirement Plan shall have his or her <br>benefit increased by one and one-half percent (1.5%), provided the recipient has <br>been receiving a retirement benefit for at least twelve (12) months prior to the <br>effective date of the increase. If the recipient has been receiving a benefit for less <br>than twelve (12) months prior to the effective date of the increase provided by this <br>subsection, the increase shall be reduced on a pro rata basis for each month the <br>recipient has not been receiving a benefit in the twelve (12) months preceding the <br>effective date of the increase. In determining the state's appropriation to the <br>Legislators' Retirement Fund, only the costs of increases granted as of the most <br>recent valuation date shall be recognized. The benefits of this subsection as <br>provided on July 1, 2009, and thereafter shall not be considered as benefits <br>protected by the inviolable contract provisions of KRS 6.505. The General <br>Assembly reserves the right to suspend or reduce the benefits conferred in this <br>subsection if in its judgment the welfare of the Commonwealth so demands. (4) In addition to the increase to a recipient's retirement allowance as provided by subsection (3) of this section, the General Assembly may, by subsequent legislation, <br>provide supplemental increases to a recipient's retirement allowance to help adjust for actual changes in the recipient's cost of living if the General Assembly <br>appropriates sufficient funds to fully prefund the benefit in the year the increase is <br>provided. Effective: June 27, 2008 <br>History: Amended 2008 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 2, effective June 27, 2008. -- Amended 1998 Ky. Acts ch. 360, sec. 2, effective July 15, 1998. -- Created <br>1982 Ky. Acts ch. 380, sec. 2, effective July 15, 1982.