KRS § 61.595 — KY Code / Title VIII / Chapter 61 / Section 61.595
61.595 Annual retirement allowance -- Limitations
Status: in_force

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.