61.595 Service retirement allowance -- Limitations.
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61.595 Service retirement allowance -- Limitations.
(1) Effective July 1, 1990, upon retirement at normal retirement date or subsequent
thereto, a member may receive an annual retirement allowance, payable monthly <br>during his lifetime, which shall consist of an amount equal to two and two-tenths <br>percent (2.2%) for the County Employees Retirement System and one and ninety-<br>seven hundredths percent (1.97%) for the Kentucky Employees Retirement System <br>of final compensation multiplied by the number of years of service credit, except <br>that: <br>(a) Effective February 1, 1999, a member of the Kentucky Employees Retirement
System who was participating in one (1) of the state-administered retirement <br>systems as of January 1, 1998, and continues to participate through January 1, <br>1999, shall receive an annual retirement allowance, payable monthly during <br>his lifetime, which shall consist of an amount equal to two percent (2%) of <br>final compensation multiplied by the number of years of service credit. Any <br>Kentucky Employees Retirement System member whose effective date of <br>retirement is between February 1, 1999, and January 31, 2009, and who has at <br>least twenty (20) years of service credit in one (1) of the state-administered <br>retirement systems and who was participating in one (1) of the state-<br>administered retirement systems as of January 1, 1998, and continues to <br>participate through January 1, 1999, shall receive an annual retirement <br>allowance, payable monthly during his lifetime, which shall consist of an <br>amount equal to two and two-tenths percent (2.2%) of final compensation <br>multiplied by the number of years of service credit. Notwithstanding the <br>provisions of KRS 61.565, the funding for this paragraph shall be provided <br>from existing funds of the retirement allowance account;
(b) For a member of the County Employees Retirement System whose
participation begins on or after August 1, 2004, the annual retirement <br>allowance upon retirement at normal retirement date or later shall be equal to <br>two percent (2%) of final compensation multiplied by the number of years of <br>service credit and shall be payable monthly during his lifetime;
(c) The annual normal retirement allowance for members of the General
Assembly, who serve during the 1974 or 1976 General Assembly, and will <br>have eight (8) years or more of total legislative service as of January 6, 1978, <br>shall not be less than two hundred forty dollars ($240) multiplied by the <br>number of years of service as a member of the General Assembly;
(d) For a member of the Kentucky Employees Retirement System or the County
Employees Retirement System who begins participating on or after September <br>1, 2008, the annual retirement allowance upon retirement shall be equal to: <br>1.
a.
One and one-tenth percent (1.1%) of final compensation for each <br>year of service if the member has earned ten (10) or less years of <br>service at retirement;
b.
One and three-tenths percent (1.3%) of final compensation for <br>each year of service if the member has earned greater than ten (10) <br>but no more than twenty (20) years of service at retirement;
c.
One and one-half percent (1.5%) of final compensation for each <br>year of service if the member has earned greater than twenty (20) <br>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 <br>each year of service if the member has earned greater than twenty-<br>six (26) but no more than thirty (30) years of service at retirement; <br>and
2.
Two percent (2.0%) of final compensation for each year of service <br>earned in excess of thirty (30) years of service at retirement;
(e) The annual normal retirement allowance for members of the General
Assembly who will have fewer than eight (8) years of service as of December <br>31, 1975, shall be as prescribed in Chapter 116, section 36(1), Acts of the <br>1972 General Assembly for legislative service prior to January 1, 1974;
(f) 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 <br>increased retirement allowance of two hundred forty dollars ($240) times the <br>years of legislative service, if the member pays to the Kentucky Employees <br>Retirement System thirty-five percent (35%) of the actuarial cost of the higher <br>benefit, as determined by the system, except that a former member with <br>sixteen (16) or more years of legislative service, or his beneficiary, who is <br>receiving a retirement allowance, also is eligible under this section and may <br>apply for a recomputation of his retirement allowance. The employer's share <br>of sixty-five percent (65%) of the computed actuarial cost shall be paid from <br>the State Treasury to the Kentucky Employees Retirement System upon <br>presentation of a properly documented claim to the Finance and <br>Administration Cabinet. If any member with sixteen (16) or more years of <br>legislative service previously applied for and is receiving a retirement <br>allowance, he may reapply and his retirement allowance shall be recomputed <br>in accordance with this paragraph, and he shall thereafter be paid in <br>accordance with the option selected by him at the time of the reapplication;
(g) 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 <br>(1) of which is current service, shall not be less than five hundred twelve <br>dollars ($512); and
(h) The annual retirement allowance for a member of the Kentucky employees
retirement system or County Employees Retirement System shall not exceed <br>the maximum benefit as set forth in the Internal Revenue Code.
(2) (a) Upon service retirement prior to normal retirement date, a member may
receive an annual retirement allowance payable monthly during his lifetime <br>which shall be determined in the same manner as for retirement at his normal <br>retirement date with years of service and final compensation being determined <br>as of the date of his actual retirement, but the amount of the retirement <br>allowance so determined shall be reduced at an amount determined by the <br>board's actuary to reflect the earlier commencement of benefits.
(b) A member of the Kentucky Employees Retirement System or the County
Employees Retirement System who begins participating before September 1, <br>2008, who has twenty-seven (27) or more years of service credit, at least <br>fifteen (15) of which are current service, may retire with no reduction in the <br>retirement allowance. A member who begins participating before September <br>1, 2008, who has earned vested service credit in a retirement system, other <br>than the Teachers' Retirement System, sponsored by a Kentucky institution of <br>higher education, the Council on Postsecondary Education, or the Higher <br>Education Assistance Authority, may count the vested service toward attaining <br>the necessary years of service credit as provided in KRS 61.559(2)(c) and (d) <br>to qualify for a retirement allowance. The credit from a Kentucky institution <br>of higher education, the Council on Postsecondary Education, or the Higher <br>Education Assistance Authority shall not be used toward the minimum fifteen <br>(15) years of current service required by KRS 61.559(2)(c) and (d) or to <br>calculate his retirement allowance pursuant to this section. The provisions of <br>this paragraph shall not be construed to limit the use of Teachers' Retirement <br>System credit pursuant to KRS 61.680(2)(a).
(c) A member of the Kentucky Employees Retirement System or the County
Employees Retirement System who begins participating on or after September <br>1, 2008, may retire with no reduction in benefits if the member is fifty-seven <br>(57) years of age or older and has an age and years of service total of at least <br>eighty-seven (87) years. The years of service used to determine eligibility for <br>an unreduced retirement allowance under this paragraph shall only include <br>years of service credited under KRS 16.543(1), 61.543(1), or 78.615(1) or <br>another state-administered retirement system.
(3) The retirement allowance shall be calculated by using the member's known
creditable compensation prior to his last month's employment and an estimate of his <br>creditable compensation during the last month he was employed. Based upon this <br>calculation, the State Treasurer shall be requested to issue the initial retirement <br>payment.
(4) A new calculation shall be made when the official report has been received of the
member's creditable compensation during his last month's employment. However, <br>the retirement allowance determined in accordance with subsection (3) of this <br>section shall be the official retirement allowance unless the new calculation derives <br>an amount which is two dollars ($2) greater or less than the amount of the initial <br>retirement payment. If the member or beneficiary chose an actuarial equivalent <br>refund payment option, the amount of estimated retirement allowance shall be the <br>official retirement allowance unless the new calculation produces an amount which <br>is one hundred dollars ($100) greater or less than the amount of the initial <br>retirement payment.
Effective: June 27, 2008 <br>History: 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, <br>2004. -- Amended 2002 Ky. Acts ch. 52, sec. 8, effective July 15, 2002. -- Amended <br>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. </p>
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